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

Seniors in the Interior Health region can book their COVID-19 vaccinations starting Monday, March 8, 2021 at 7 a.m. (File photo)
Seniors in Interior Heath region can book COVID-19 shots starting Monday

Starting March 8 the vaccination call centre will be open 7 a.m. to 7 p.m. daily

Interior Health reported 33 new COVID-19 cases on March 5. (Black Press Files)
Interior Health reports 33 new COVID-19 cases on March 5

Over 300,000 vaccine doses have been administered provincewide.

L-R: The Nelson Skating Club’s Vienna Ferguson, Oceane Cheon and Paisley Jarvis wait for their performance times during the Kootenay Region Virtual Competition on Feb. 20. Photo: Submitted
Nelson Skating Club competes in regional event

The Kootenay Region Virtual Competition was held Feb. 20

Former owner and new manager Cole Johnston holds up the Reo’s sign outside its new location on Hall Street. The video rental store will reopen March 17. Photo: Submitted
Civic Theatre to reopen Reo’s at new location

The theatre has purchased the video rental store

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead on Vancouver Island in ‘targeted incident’

Highway 14 reopens following multi-hour closure for investigation

Personal protective equipment is seen in the COVID-19 intensive care unit at St. Paul’s hospital in downtown Vancouver. THE CANADIAN PRESS/Jonathan Hayward
$16.9 million invested to improve worker safety, strengthen B.C.’s food supply chain

Money to be used for social distancing, personal protective equipment, cleaning, and air circulation

More than ever before, as pandemic conditions persist, the threat of data breaches and cyberattacks continues to grow, according to SFU professor Michael Parent. (Pixabay photo)
SFU expert unveils 5 ways the COVID-19 pandemic has forever changed cybersecurity

Recognizing these changes is the first in a series of steps to mitigate them once the pandemic ends, and before the next: Michael Parent

Most Read