Las Vegas Sun – CG Technology says it has reached a tentative settlement with the Nevada Gaming Control Board over allegations the company, formerly known as Cantor Gaming, was lax in its oversight of employees and kept inadequate records.
News of the tentative settlement for an undisclosed amount was announced late this afternoon, after an 18-count regulatory complaint was filed by the board. The complaint landed just hours after Cantor officially announced its new name.
The board’s investigation began after the October 2012 indictment of a company executive accused of operating an illegal sports gambling enterprise.
Michael Colbert, former director of risk management and vice president of then-Cantor Gaming in Las Vegas, pleaded guilty in a New York federal court last year to one felony charge of conspiracy for his role in the nationwide illegal sports betting ring. His sentence is pending.
“The company conducted its own extensive internal analysis of Mr. Colbert’s actions and of the company’s systems, operations, and procedures, and has implemented additional industry-leading compliance processes,” CG Technology spokeswoman Hannah Sloane said in a statement.
In regard to the Colbert matter, the board determined that CG Technology officials should have known about the key employee’s illegal activities and taken steps to prevent them from happening.
Given Colbert’s position of authority, his arrest “directly impacts the state’s reputation in ensuring gaming is conducted honestly, competitively and free of criminal and corruptive elements,” the complaint states.
Three other alleged violations stemming from the illegal betting ring relate to CG Technology accepting wagers from “messenger bettors.”
Three men — Paul Sexton, Robert Drexler and Thomas Ludford — served as messenger bettors for high-volume wagerer Gadoon Kyrollos, who employed them to place bets for him with CG Technology, the complaint states.
The trio placed thousands of wagers for a combined total of more than $34 million. Sexton has since pleaded guilty to fourth-degree money laundering and has forfeited $600,000, according to the complaint.
