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Man Sentenced For Role In Casino Operation
Officials: Man Failed To Keep Tax Documents
POSTED: 11:20 am EST March 4, 2008
UPDATED: 11:49 am EST March 4, 2008
<SCRIPT src="/js/13260191/script.js" type=text/javascript></SCRIPT><LINK href="/css/13260803/style.css" type=text/css rel=stylesheet><!--startindex-->HARTFORD, Conn. -- A New York man who operated a black market business out of Mohegan Sun Casino was sentenced Monday.
Chen Zhi Qian, 44, of New York, was sentenced to two years of probation by the U.S. District Court in Hartford. Chen was charged with failing to keep records for tax purposes in connection with a black market business he was operating out of the casino. Chen pleaded guilty to the offense on Nov. 8, 2007.
According to court documents, Chen's black market business allowed Mohegan Sun customers to sell points accrued through the casino's player's points system. The points system, set up by the casino, is a promotional program for its patrons that reward gaming activities with food, hotel, retail and entertainment, and other services offered by the casino. Each point awarded through the system is equivalent to $1 but has no cash value and the points are non-transferable.
In pleading guilty, Chen admitted that he purchased player's points from gamblers at a significant discount, and then used those points to purchase gold coins from a retailer in the casino. Chen then converted the gold coins to cash, thereby making a profit on the transactions, officials said.
During the course of an investigation, Chen purchased player's points from an undercover officer who was posing as a gambler. The transaction took place in a men's room at the casino and no records were generated to document this transaction for tax purposes, officials said.
According to the Internal Revenue Code, individuals who operate a business are required to keep sufficient records of their activities for the purpose of computation, assessment or collection of federal income taxes. However, because Chen failed to keep transactions records, it was impossible for the Internal Revenue Service to determine his tax liability in connection with this business, officials said.
Man Sentenced For Role In Casino Operation
Officials: Man Failed To Keep Tax Documents
POSTED: 11:20 am EST March 4, 2008
UPDATED: 11:49 am EST March 4, 2008
<SCRIPT src="/js/13260191/script.js" type=text/javascript></SCRIPT><LINK href="/css/13260803/style.css" type=text/css rel=stylesheet><!--startindex-->HARTFORD, Conn. -- A New York man who operated a black market business out of Mohegan Sun Casino was sentenced Monday.
Chen Zhi Qian, 44, of New York, was sentenced to two years of probation by the U.S. District Court in Hartford. Chen was charged with failing to keep records for tax purposes in connection with a black market business he was operating out of the casino. Chen pleaded guilty to the offense on Nov. 8, 2007.
According to court documents, Chen's black market business allowed Mohegan Sun customers to sell points accrued through the casino's player's points system. The points system, set up by the casino, is a promotional program for its patrons that reward gaming activities with food, hotel, retail and entertainment, and other services offered by the casino. Each point awarded through the system is equivalent to $1 but has no cash value and the points are non-transferable.
In pleading guilty, Chen admitted that he purchased player's points from gamblers at a significant discount, and then used those points to purchase gold coins from a retailer in the casino. Chen then converted the gold coins to cash, thereby making a profit on the transactions, officials said.
During the course of an investigation, Chen purchased player's points from an undercover officer who was posing as a gambler. The transaction took place in a men's room at the casino and no records were generated to document this transaction for tax purposes, officials said.
According to the Internal Revenue Code, individuals who operate a business are required to keep sufficient records of their activities for the purpose of computation, assessment or collection of federal income taxes. However, because Chen failed to keep transactions records, it was impossible for the Internal Revenue Service to determine his tax liability in connection with this business, officials said.
