Authorities in New Zealand charged 23 people for allegedly dishonestly collecting NZ$3.2m (US$2m) in gambling grant funds for charity. The individuals face over 500 charges, including money laundering, receiving stolen funds, and forgery-related offenses.
Department of Internal Affairs Gambling Director Vicki Scott said that this is the biggest-ever gambling-related prosecution, calling the investigation “mammoth” and “complex.”
The New Zealand Gambling Act requires all class four slot machine operators to give at least 40% of their profit to the community in the form of grants to charities and other types of organizations.
Much of the money was paid out in the form of salaries for fake employees.
Officials believe some of the charities were created solely to siphon off grant money. Much of the money was paid out in the form of salaries for fake employees. Certain defendants also allegedly operated a slot machine venue. Investigators believe that some of the grant money was laundered through the company’s bank accounts to give back slot machine profits to the class four operators.
The names of the defendants won’t be revealed until the next hearing on April 9. The charges carry significant prison sentences, such as a maximum penalty of seven years in prison for receiving stolen funds and money laundering offenses. Document forgery can lead to up to a decade behind bars.
