Avatar

Kamala Harris, the Attorney General for California, recently accused the M8trix Casino of fraudulently hiding profits reports Mercury News. Harris alleges that the casino has hidden profits to reduce its tax burden and withhold funds from a nonprofit organization to help fight gambling addictions.

The M8trix Casino signed an agreement with the Asian Americans for Community Involvement (AACI) in 2009. The contract stated that it would pay either $125,000 or 5.15% of its net income to help fund efforts to counter problem gambling. The ACCI stated that it has helped reduce problem gambling in California, which it attributes partly to generous grants from the Garden City Casino and other card rooms.

According to San Jose city councilman Sam Liccardo, the casino has only paid $125,000 in three years since the agreement was formed. Liccardo said that the casino appears to be have generated higher profits and should have paid a larger sum to the AACI. Liccardo has called for an investigation. He believes that the casino generated $60 million more in profits than it reported. Liccardo and other officials insist the city revoke the casino’s gaming license if the suspicions are confirmed.

Harris’s office filed an official report on May 2. The Attorney General intends to conduct a separate investigation, which may prove that the M8trix engaged in tax fraud and perjury. Federal officials have not commented on the allegations, but may conduct their own investigation.

Sean Kali-rai, a former marketing official and current lobbyist for the M8trix has disputed the allegations. However, Kali-rai declined to give additional details.

The California Gambling Control Commission has received the complaint. The regulator is expected to begin the investigation by the end of the month.