Commissioner Austin Cullen, back centre, listens to introductions before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver, on Monday, February 24, 2020. A former RCMP officer described by his lawyer as a whistleblower for investigating organized crime in casinos is scheduled to testify today at an inquiry into money laundering in British Columbia. THE CANADIAN PRESS/Darryl Dyck

Commissioner Austin Cullen, back centre, listens to introductions before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver, on Monday, February 24, 2020. A former RCMP officer described by his lawyer as a whistleblower for investigating organized crime in casinos is scheduled to testify today at an inquiry into money laundering in British Columbia. THE CANADIAN PRESS/Darryl Dyck

Inquiry hears gaming minister focused on money, not organized crime at B.C. casinos

2017 arrests tied to organized crime, illegal gaming led to dramatic dips in revenue at casinos

A former RCMP officer testified at an inquiry into money laundering Thursday that a British Columbia cabinet minister told him in 2009 that the gaming minister knew about organized crime at casinos but was more focused on the revenue they generated.

Fred Pinnock, who was in charge of the now-defunct illegal gaming enforcement team, testified that he met with then-solicitor general Kash Heed, who is also a former officer he knew through policing circles for 35 years.

Pinnock said Heed told him that his concerns about illegal activities were legitimate but Rich Coleman, who was the gaming minister, was “all about the money.”

“I believe I said to him I’m convinced that Rich Coleman knows what’s going on inside those casinos,” Pinnock said. “And he confirmed my perceptions.”

Pinnock said Heed asserted Coleman was “largely responsible” for problems at casinos and named three or four senior RCMP officers who he alleged were complicit as “puppets for Coleman.”

He said the meeting with Heed was at a cafe or restaurant in Victoria in November 2009.

“Did you ask him whether, as the sitting solicitor general, he had directed any sort of enforcement response?” asked Patrick McGowan, a lawyer for the inquiry.

“It didn’t come up,” Pinnock replied.

Pinnock said he called Heed in July 2018 and secretly recorded the conversation before meeting with him in September that year, when he again recorded the former politician repeating his previous comments about Coleman.

Before he initially met with Heed, Pinnock said his then-girlfriend, legislature member Naomi Yamamoto, approached the gaming minister about arranging a meeting with him on what Pinnock alleged was “out-of-control organized criminal activity” at casinos.

“She told me that it was in a group setting and she described his reaction as brutal and dismissive and embarrassing,” Pinnock said. “My conclusion from that is that he did not want to be seen to be told.”

Yamamoto, who was minister of state for emergency preparedness before the B.C. Liberals were defeated in 2017, never discussed any caucus or cabinet issues with him, said Pinnock, who is now married to Yamamoto.

The NDP launched the inquiry after reports outlined how illegal cash was helping to fuel the real estate, luxury car and gambling sectors in the province. The province also commissioned three reports that said millions of dollars in dirty money flowed through those businesses.

Pinnock said his team was working in partnership with the Gaming Policy and Enforcement Branch but that was a “charade” and rising tension had him move his staff to a different area of the same building.

He told the inquiry his superiors’ expectations in working with the branch were to “play nicely, get along, we don’t expect big things from you.”

His attempts to investigate proceeds of crime, money laundering and loan sharking at casinos had him writing two proposals in 2007, the first to expand his team and the second to increase funding, Pinnock said, adding he did so at the direction of a senior officer.

However, he testified he doesn’t believe anything came of what he proposed and that he quit his job in December 2007 after two years of frustration. He retired from the RCMP the following year, and the illegal gaming enforcement team was disbanded in 2009.

Earlier Thursday, the inquiry heard the arrests of several people tied to organized crime and illegal gaming in 2017 led to dramatic reductions in revenue at casinos, but only temporarily.

Daryl Tottenham, manager of anti-money laundering programs for the B.C. Lottery Corp., testified casinos were like ghost towns for two to three weeks as high-end players and others stayed away.

Camille Bains, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

money laundering

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

COVID-19. (Image courtesy CDC)
Interior Health reports 70 new cases overnight

The total number of cases in the region is now at 1,426

David Moskowitz file
Wildsight to present webinar on Inland Temperate Rainforest

Join Wildsight next Tuesday, December 1, 2020 for a free webinar on… Continue reading

Carmen Hintz (right) donates $500 to Heather Smith (left) at the Kimberley Food Bank, leftover cash after fundraising to rescue four kittens. Paul Rodgers photo.
Local’s extra kitten fundraiser money donated to Kimberley Food Bank

Carmen Hintz donates $500, after raising money to support rescued cats

Ryder and Cohen of Kimberley Minor Hockey can play on with new mandates from the Provincial Health Officer. Photo submitted.
Kimberley Minor Hockey president hopes to see curve flatten for a return to hockey

New COVID-19 orders put in place by the government last week stated… Continue reading

Masks are now officially mandatory in all City of Campbell River facilities. (Black Press File Photo)
Interior Health reports 49 new COVID-19 cases overnight

302 cases remain active; two in hospital

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

(File photo)
Alberta woman charged after allegedly hitting boy with watermelon at Okanagan campsite

Police say a disagreement among friends at an Adams Lake campsite turned ugly

Court of Appeal for British Columbia in Vancouver. (File photo: Tom Zytaruk)
B.C. woman loses appeal to have second child by using late husband’s sperm

Assisted Human Reproduction Act prohibits the removal of human reproductive material from a donor without consent

Krista Macinnis displays the homework assignment that her Grade 6 daughter received on Tuesday. (Submitted photo)
B.C. mom angry that students asked to list positive stories about residential schools

Daughter’s Grade 6 class asked to write down 5 positive stories or facts

B.C. projects targeting the restoration of sockeye salmon stocks in the Fraser and Columbia Watersheds will share in $10.9 million of federal funding to protect species at risk. (Kenny Regan photo)
13 projects protecting B.C. aquatic species at risk receive $11 million in federal funding

Salmon and marine mammals expected to benefit from ecosystem-based approach

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Barrels pictured outside Oliver winery, Quinta Ferreira, in May. (Phil McLachlan - Black Press Media)
B.C. Master of Wine reflects on industry’s teetering economic state

Pandemic, for some wine makers, has been a blessing in disguise. For others, not so much.

An employee of the Adventure Hotel was taken to hospital on Nov. 20 after she confronted a customer of Empire Coffee about not wearing a mask. File photo.
Nelson hotel employee suffers heart attack after being assaulted in anti-mask incident

An accountant at the Adventure Hotel is in hospital in Kelowna

Most Read