Miccosukee theft

Embezzled by casino employees, laundered by spouses: Florida tribe sues to recover stolen $5.3 million


The lawsuit lays out the following series of events:

After getting the tip, the tribe conducted its own investigation, which led it to observe a single video technician inserting vouchers into gaming machines during a time no customers were playing.

Based on available facts, the tribe estimated that $16,478 had been swindled. That fell short of the $50,000 deductible in the casino’s $5 million theft policy from Great American Insurance Company.

Casino officials could not determine the method used to pull off the theft, how many people were involved, how long it was going on, and how much was stolen.

They summoned the Miccosukee Police Department, but the tribal police could not pinpoint how the casino’s machines were being manipulated or turn up enough evidence against their sole suspect to support criminal charges.

So the tribe called the FBI, which immediately began its own investigation and told tribe officials not to discuss the matter with anyone until it was concluded. At the FBI’s request, the tribe also hired an internal auditor specializing in the gaming industry to investigate what happened.

In August 2017, the auditor filed a report, which she shared with the FBI, revealing that multiple employees manipulated gaming machines to produce “ghost credits” and had been cashing them in for more than four years, from January 2011 to May 2015.

The amount of money swindled was at least $5,283,638 — far more than the initial determination of $16,478, the auditor found.

The FBI’s investigation continued for another two years. In July 2019, a federal Grand Jury issued a 63-count indictment charging eight individuals — five employees and three of their spouses — with participating in the scheme.

According to Department of Justice news releases about the case, four indicted video game technicians worked with co-workers to tamper with the gaming machine’s computers, causing them to generate credit vouchers or tickets falsely showing that they had won money.

They then enlisted other conspirators who did not work at the casino to exchange the vouchers for cash at ATMs on the casino floor, at floor cashiers, or the casino treasury.

The co-conspirators used the stolen funds to buy homes, vehicles, investment properties, and prepaid college plans for some of their children, the indictments alleged.

https://www.msn.com/en-us/news/crime/embezzled-by-casino-employees-laundered-by-spouses-florida-tribe-sues-to-recover-stolen-5-3-million/ar-AA15xxYB?ocid=msedgntp&cvid=5daefd7287fb47c5b783c2e25df2efb9

That is some story. I don't understand how no one noticed the machines were underperforming by millions.

I know it's a different thread but this goes to what I meant about the Connecticut OTB guy and them claiming they banned him on suspicion of money laundering.

Gaming venues don't do that. They follow the suspect, bring in authorities and just plain leave them alone UNTIL they figure out the entire plot.

Just like what was described above.

Any wagering facility that evicts someone for suspicious activity without calling authorities is just slinging BS.

Meanwhile, casino management remained upbeat as they explained they have been doing an excellent job at banning low-level card counters and machine advantage players.

Well million dollar theft issues are below middle management concerns, gotta work that bottom line in ways that help their Christmas bonuses dontcha kno!

I'm surprised in this digital age that something like this could have been going on long enough to get that far. Seems like with some simple programming based off of return and expected play times and play amounts for minimal cost this could of been automatically detected.

Quote: Talldude90

Well million dollar theft issues are below middle management concerns, gotta work that bottom line in ways that help their Christmas bonuses dontcha kno!

I'm surprised in this digital age that something like this could have been going on long enough to get that far. Seems like with some simple programming based off of return and expected play times and play amounts for minimal cost this could of been automatically detected.
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I'd wager dollars to donuts that it was precisely some "simple programing" that allowed this to go on for years.

Once they figured out how to hack the system to add credits they figured out how to hack the safeguard that protected that from happening.

That's why even the investigators were stumped. They kept checking the safeguard and getting the correct (secretly manipulated) answers.

Like the scene at the end of Oceans 11 when Andy Garcia is staring point blank at the video monitors and the vault is completely untouched. Suddenly he realizes the very security system he relies on is what allowed the robbery to take place.

Reliance on modern age systems is null and void once the modern age systems themselves are hacked.

Quote: darkoz

Quote: Talldude90

Well million dollar theft issues are below middle management concerns, gotta work that bottom line in ways that help their Christmas bonuses dontcha kno!

I'm surprised in this digital age that something like this could have been going on long enough to get that far. Seems like with some simple programming based off of return and expected play times and play amounts for minimal cost this could of been automatically detected.
link to original post

I'd wager dollars to donuts that it was precisely some "simple programing" that allowed this to go on for years.

Once they figured out how to hack the system to add credits they figured out how to hack the safeguard that protected that from happening.

That's why even the investigators were stumped. They kept checking the safeguard and getting the correct (secretly manipulated) answers.

Like the scene at the end of Oceans 11 when Andy Garcia is staring point blank at the video monitors and the vault is completely untouched. Suddenly he realizes the very security system he relies on is what allowed the robbery to take place.


Reliance on modern age systems is null and void once the modern age systems themselves are hacked.
link to original post

If I was to do something similar I would just occasionally give free-play to random accounts. I wonder if that is what they were referring to when they said "Ghost credits". It would be very easy to get away with until you got too greedy. If I had to guess that has happened at every casino that issues free-play.

A large percentage of Free-play issued is never redeemed so issuing "extra" free play and cashing it in will probably not set off any alarm bells. As long as the total free-play redeemed doesn't come close to exceeding the amount of legitimate free-play issued most would not notice. If the person issuing the extra free-play was one of the same people issuing the legitimate free-play it would not set off any alarms on the free-play audits. Sadly, many casinos have way too many people authorized to issue free-play. This was the kind of stuff I dealt with regularly.

Quote: DRich

Quote: darkoz

Quote: Talldude90

Well million dollar theft issues are below middle management concerns, gotta work that bottom line in ways that help their Christmas bonuses dontcha kno!

I'm surprised in this digital age that something like this could have been going on long enough to get that far. Seems like with some simple programming based off of return and expected play times and play amounts for minimal cost this could of been automatically detected.
link to original post

I'd wager dollars to donuts that it was precisely some "simple programing" that allowed this to go on for years.

Once they figured out how to hack the system to add credits they figured out how to hack the safeguard that protected that from happening.

That's why even the investigators were stumped. They kept checking the safeguard and getting the correct (secretly manipulated) answers.

Like the scene at the end of Oceans 11 when Andy Garcia is staring point blank at the video monitors and the vault is completely untouched. Suddenly he realizes the very security system he relies on is what allowed the robbery to take place.

Reliance on modern age systems is null and void once the modern age systems themselves are hacked.
link to original post

If I was to do something similar I would just occasionally give free-play to random accounts. I wonder if that is what they were referring to when they said "Ghost credits". It would be very easy to get away with until you got too greedy. If I had to guess that has happened at every casino that issues free-play.
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Later in the article it says they caused the slot vouchers to show they had "won money". While the Freeplay angle is possible they don't mention that and Freeplay distribution is harder to hide.

I suspect it's similar to what Nickrash (if that is his name) was doing. He would insert a temporary computer chips that downloaded a "win" so the Casino just saw a winning patron.

He needed a large crew to hide from the cameras when he entered the machines. Here the workers themselves already having access to the machines did it themselves probably under the auspices of refilling the voucher dispensary.

Quote: darkoz

[
I suspect it's similar to what Nickrash (if that is his name) was doing. He would insert a temporary computer chips that downloaded a "win" so the Casino just saw a winning patron.

I doubt it but obviously I don't know for sure. Just too complicated when there are many easier ways to steal when insiders are involved.

All the age-old rules of asset protection still apply in all the new-fangled systems. Just the methods and equipment change. It probably should have been detected sooner than 5 years.

The casino knew it was being ripped off but allowed it to continue for years at the FBI's request as they gathered evidence. Sounds about right.

Quote: billryan

The casino knew it was being ripped off but allowed it to continue for years at the FBI's request as they gathered evidence. Sounds about right.
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I tried to explain this to people that if you were under investigation you wouldn’t know. The guys who are deep in the weeds undercover are so good you wouldn’t know who they were. They are allowed to get away with all sorts of things, and they will take their time.