12121423 Master Licensing & Investigations Training Book

SEMINAR INSTITUTE

Certification Training

Master Class on Licensing & Investigations Training Material

December 12 - 14 , 202 3

New York/New York Hotel Casino Las Vegas, Nevada

Master's on Licensing & Investigations December 12 - 14 202 3 , NYNY Hotel Casino - Las Vegas , NV AGENDA (subject to change)

Tues day, December 12 Breakfast to be provided

8:00 AM 9:00 AM

Elements Found in Great Investigations Abe Martin CFE, Casino Cryptology

9:00 AM 10:15 AM

10:15 AM 10:30 AM

Break

Coordinating Fraud Investigation Abe Martin CFE, Casino Cryptology

10:30 AM 12:00 PM

12:00 PM 1:30 PM

Lunch Break

Financial Statements from Certified Fraud Investigators Point of View Abe Martin CFE, Casino Cryptology

1:30 PM 3:00 PM

3:00 PM 3:15 PM

Break

Commission Casino Fraud/Embezzlement/Cheats/Scams Abe Martin CFE, Casino Cryptology Wednes day, December 13

3:15 PM 4:30 PM

8:00 AM 9:00 AM

Breakfast to be provide d Vetting Your Vendors Best Practices: What You Should Know, How to Find the Most Current Infor and New Tools for Vetting Vendors Billy David, B o -Co-Pa & Associates Break Due Diligence for Casino Licensing Best Practices: What can you really get, where should you go and What do you need to know Billy David, B o -Co-Pa & Associates Lunch Break Steps in Assuring Licensee Due Process Rights are Adhered To: Understanding Sovereignty Immunity, Scope of Authority and Administrative Enforcement Billy David, Bo-Co-Pa & Associates

9:00 AM 10:15 AM

10:15 AM 10:30 AM

10:30 AM 12:00 PM

12:00 PM 1:30 PM

1:30 PM 3:00 PM

3:00 PM 3:15 PM

Break Hearing Preparation for You and Your team. Billy David, B o -Co-Pa & Associates Thurs day, December 14

3:15 PM 4:30 PM

8:00 AM 9:00 AM

Breakfast to be provided

Mock Hearing Prepartion and Practice Bill Corneliius JD, Tribal Attorney, Billy David Bo-Co-Pa & Associates and Abe Casino. Cryptology

9:00 AM 12:00PM

Please plan to stay for the entire class on each day to get your certificate of completion. Please be on time for sessions

11/28/22

Elements Found In Great Investigations

Abe Martin, CFE, CSP abe@casinocryptology.com 931-CRYPTIC (279-7842) www.casinocryptology.com

agenda:

9-10:15am: Elements Found in Great Investigations 10:15-10:30 Break 10:30-12:00pm: Coordinating Fraud Investigations 12:00-1:30: Lunch 1:30-3pm: Financial Statements from a Certified Fraud Investigators Point of View 3-3:15p Break 3:15-4:30pm: Commission Casino Fraud/Embezzlement/Cheats/Scams

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GOALS:

1. Learn something new; information, technique, point of consideration, etc. 2. At least one contribution to the team 3. HAVE SOME FUN!

Warm-up

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5 elements of great investigations

1. INSTIGATION 2. PRE-INVESTIGATION 3. INVESTIGATION 4. CONCLUSION 5. POST-INVESTIGATION

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“A lot of investigations fail because they were never started.” ~Casino Security and Gaming Surveillance

Objectivity! Objective – (of a person or their judgment) not influenced by personal feelings or opinions in considering and representing facts. • Constant awareness of personal state/bias • Team and environment that supports objectivity • No interest in the outcome of a situation or investigation

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Start from the beginning Be aware of any investigating that might have happened before you were involved. In many cases, a “field investigation” may have taken place or you might be the one who does it. Key points are: • Assess the scene, enter if safe • Secure the scene • Identify or collect evidence: people/objects of interest, photos, initial statements • Make notifications and/or report

COMMUNICATION

• Document, document, document! • Ensure that the:

• Time and date of notification is documented • Source is reliable and information is verifiable • Any field investigation or perishable evidence • Informant has conveyed all information that is available to them at the time • Ask questions • Paraphrase • Advise informant of applicable standard(s)

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EXSTABLISHED STANDARDS

• Consider (and act upon) reporting standards • Do you, or your position have any conflicts of interest? • Does your position have the ability and/or authority to move forward? • Is your position obligated to investigate? • Is there anyone else who is obligated to investigate? • Who has [primary] jurisdiction?

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Checklist: operations

The first step in pre-investigation is to consider any requirements for the investigation.Those may include: • Any remaining perishable evidence • Legal • Procedural • Ethical Some requirements could affect how you proceed, with whom and/or how you communicate.

Checklist: information

Brainstorm information/resources that could find facts of the matter.Those could be internal or external and may include:

• Approval/authority • Expertise • Reports • Statements • Footage • Evidence

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Checklist: information

Identify elements of the alleged offense/crime.With fraud as our example in this case, we must (generally) prove three elements: 1. A purposeful deception 2. Intent to deprive the victim of something 3. The victim suffered an actual loss as result of the fraud

Checklist: People

The next step in pre-investigation is to make a list of the people involved and their role in resolving the issue(s). This list may expand or contract as the investigation develops. • Safety First: consider if any of the people involved (potential suspect(s), victim(s) or witness(es) need to be placed on leave or reassigned during investigation.

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Checklist: People

When investigating fraud, the team will usually consist of: • Victim(s) • Suspect(s) • Witness(es)

• Other Investigator(s) • Information sources • Superiors (stakeholders) • Law Enforcement (if applicable) • Criminal Justice

Checklist: communication

Parameters for communication should be established early. Whenever possible, information flow should: • Substantiate justifiable right or need to know

• Identify responsibilities • Clearly define limitations

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Proceed to investigation

With these steps in place and variables negotiated, the investigation will be in a better position to proceed.

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Perishable Evidence

Any item or information that may disappear or diminish in value over time. • Statements • Trash • Footage • Environmental conditions

Evidence:

Basic types of evidence:

1. Testimony = lay or expert, both are the statements made by witness(es). 2. Real = something that played a part in the offense that the decision maker(s) can experience firsthand. 3. Demonstrative = items created by investigator/prosecutor that illustrate some material proposition; visual aids

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Evidence:

Basic types of evidence:

4. Direct = testimony that proves or disproves a fact directly; like a confession. 5. Circumstantial = tends to prove or disprove a fact indirectly; usually from direct evidence.

Evidence:

• Ensure chain of custody is established and maintained • Handle and store all physical evidence carefully, in a manner appropriate to the medium. • Understand local tolerance for working evidence. • Use working copies whenever possible.

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Evidence: Documents

• Preserve original condition • Don’t store paper in plastic folders/envelopes • Avoid folding, bending, staples or even paper clips on evidence documents • Labels or other identifiers should be unobtrusive • Be prepared to authenticate electronic documents, including printed copies

Interview/Interrogation

Interview DO’s: • Excluding field interview, plan interview questions and schedule in detail before starting • Choose interviewer carefully • Consider support staff: • Interviewer’s witness • Quick response team (Security, etc.)

• Choose and prepare location of interview • Review applicable controls, laws, etc. • Walk area of incident(s)

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Interview/Interrogation

Interview DO’s: • Consider interview acknowledgement forms or statements within interview script • Confidentiality • Neutrality • Retaliation • Keep thorough notes or other documentation • Be prepared to manage “scope creep”

Interview Room

Image credit: casecracker.com 28

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Interview/Interrogation

Interview DON’Ts: • Rush the interview • Suggest answers • Make promises or commitments • Annotate opinions • Store interview files in an employee’s personnel folder(s).

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YOUR KNOW

AUDIENCE

Elements of Report

• Issue/accusation • Relevant law, control or rule • Scope of Investigation (may state authority) • Evidence • Conclusion

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Scope of Investigation

• Matter at issue • Scope of review • Interviews conducted

• Evidence collected/considered • Other notable aspects of process

Cataloging Exhibits

• Consider uniform naming convention that • Includes department/agency case number(?) • Uses sequential numbers/letters • Chronological in order of receipt/discovery • Use labels or tags as appropriate • Report should include synopsis with exhibit number and brief description

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Conclusion

• Remember the “3 C’s” of a good report: • Clear • Complete • Concise • Evaluate evidence to determine whether it satisfies applicable burden of proof. • Each suspicion or accusation is reduced to “Sustained” or “Not Sustained” based on substantiality of evidence.

Conclusion

• Distribute report • Include statement of confidentiality • Consider encryption for documents delivered electronically • Secure work product including report and evidence • Consider encryption of electronic files

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Debrief/critique

• Investigation team meets individually and as a group to review investigation • Identify and address any unrelated issues that arose during investigation (scope creep) • Identify strengths and weaknesses of investigation; adjust process(es) accordingly • Identify potential for repeated incidents and consider conducting risk assessment(s) • Consider including subordinates in later stages as part of succession planning

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Abe Martin, CFE, CSP abe@casinocryptology.com 931-CRYPTIC (279-7842) www.casinocryptology.com

11/28/22

Coordinating Fraud Investigations

Abe Martin, CFE, CSP abe@casinocryptology.com 931-CRYPTIC (279-7842) www.casinocryptology.com

Warm-up

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Instigation

• The date is 9/28/2015, 9:38am • Call from John, Human Resources Risk Manager John advises of a suspicious workers’ comp claim; requesting investigation. John explains that he just received a doctor’s note via fax that states employee is restricted from regular duty for at least 6 weeks due to an on-the-job injury. No information about an incident is available. John is placing the employee on medical leave and reporting to the insurance company.

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Questions for John?

Other considerations?

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Perishable Evidence?

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Investigation Requirements?

What (if any) criminal elements must be proven?

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What resources will we need?

Who do we need on the team?

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What will our standards for communication be?

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Is there any Perishable Evidence?

Contact Information:

9/28 10:10 We contact Security for an Incident or Injury Report.

Security Supervisor advises no incident was reported.

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Evidence:

9/28 10:13 We print a copy of Subject’s hours from the payroll reporting system. It shows last day worked was 9/25 from 8:00am to 4:00pm.

Contact Information:

9/28 10:18 We contact Surveillance to review footage of Subject’s activities on 9/25.

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Evidence:

Case closed?

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Evidence:

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What should we do with this evidence?

Incoming Information:

• Subject’s Supervisor calls and says she heard we are investigating an injury. She lets us know that Subject mentioned he’d “tweaked” his knee during shift on 9/25 but said it wasn’t a big deal and joked about it.

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Questions for Supervisor?

Evidence:

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Case Closed?

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This was an investigation of ________________.

What are the applicable laws or controls?

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What was the scope of investigation?

Evidence?

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conclusion:

Was suspicion sustained?

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Any unrelated issues?

Pro’s & Con’s of this investigation?

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Any preventable risk of repeated incidents?

Abe Martin, CFE, CSP abe@casinocryptology.com 931-CRYPTIC (279-7842) www.casinocryptology.com

11/28/22

Financial Statements From A CFE’s Perspective

Abe Martin, CFE, CSP abe@casinocryptology.com 931-CRYPTIC (279-7842) www.casinocryptology.com

Warm-up

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“Financial statements”

• Basic Categories (statements or sheets) • Balance • Income • Equity • Cash Flow • Which ones do you use? Any others? • Footnotes & disclosures

“Financial statements”

BALANCE SHEET

Should include assets on one side, liabilities and equity on the other with balanced offset at the bottom.

Assets=liability+equity

Credit: accountingcoach.com 4

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“Financial statements”

Income Statement Should include profit/loss over a period of time. Lines (accounts) are closed at end of each period with profit or loss applied to Retained Earnings on Balance Sheet.

Credit: accountingcoach.com 5

“Financial statements”

Owner’s Equity Connector between Balance Sheet and Income Statement that details owner/shareholder interests. Also referred to as retained earnings.

Credit: accountingcoach.com 6

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“Financial statements”

Cash Flows States where cash came from and where it went; source and use. This statement often offers better transparency because cash/values are harder to distort.

Credit: accountingcoach.com 7

“Financial statements”

Credit: accountingcoach.com 8

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Accrual vs. Cash-Basis

During 2021, Any Company billed its client for $50,000. On December 31, 2021, it had received $47,000, with the remaining $3,000 to be received in 2022. Total expenses during 2021 were $32,000 with $4,000 of these costs not yet paid at December 31. Determine net income under both methods.

Accrual vs. Cash-Basis

Cash-Basis Accounting Cash receipts $47,000 Cash disbursement 28,000 Income $19,000

Accrual-Basis Accounting Revenues earned $48,000 Expenses incurred $32,000 Income $16,000

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corruption

• Conflicts of Interest • Purchases • Sales • Bribery • Kickbacks • Bid Rigging • Illegal Gratuities • Economic Extortion

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Fraudulent Statements

• Financial: • Asset/Revenue Over & Under Statements

• Timing Differences • Fictitious Revenues • Concealed Liabilities/Expenses • Improper Disclosures • Improper Asset Valuations

Fraudulent Statements

• Non-Financial:

• Employment Credentials • Internal Documents • External Documents

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Misappropriation of assets

• Misuse • Larceny • Asset Requisition & Transfers

• False Sales & Shipping • Purchasing & Receiving • Unconcealed Larceny

Misappropriation of cash

• Larceny

• From cash on hand • From deposits • Other variants

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Misappropriation of cash

• Skimming • From unrecorded or understated sales • From refunds • From receivables • Write-offs • Lapping • Unconcealed

Misappropriation of cash

• Disbursements – CheckTampering • Forged maker • Forged endorsement • Altered payee

• Concealed checks • Authorized maker

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Misappropriation of cash

• Disbursements – Expense Reimbursements • Mischaracterized • Overstated • Fictitious • Multiple reimbursements

Misappropriation of cash

• Disbursements – Payroll Schemes • Ghost employees • Commissions • Workers' compensation • Falsified wages

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Misappropriation of cash

• Disbursements – Registers • False Voids • False Refunds • Disbursements – Billing Schemes • Shell Companies • Non-accomplice vendors • Personal purchases

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People

• Employees • Internal Audit

= 55% - 60%

= 16% = 12%

• Management (review)

• External Audit = 4% • Surveillance/Monitoring = 3%

Credit: ACFE 2022 Report to the Nations 23

Information

• What is the scope of your work/examination? • Is the dataset complete? • What is the source? • MYOPICVIEW is a medical term used figuratively in data & statistics as having an inadequate dataset.

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TOOLS

• Tip Hotlines • Other reporting mechanisms • Whistleblower policies • Bounties?

TOOLS - Benford’s Law

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Abe Martin, CFE, CSP abe@casinocryptology.com 931-CRYPTIC (279-7842) www.casinocryptology.com

11/28/22

Frauds, Cheats, Scams And Embezzlement

Abe Martin, CFE, CSP abe@casinocryptology.com 931-CRYPTIC (279-7842) www.casinocryptology.com

“Good people do not need laws to tell them to act responsibly…

…while bad people will find a way around the laws.”

- Plato

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Does fraud effect your everyday life?

} Fast Food (Yum) = } CableTV theft = } Cinema Piracy =

At some point, the cost of losses are transferred to consumers; that’s you & me!

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US Code OnTheft FromTribes

Whoever embezzles, abstracts, purloins, willfully misapplies, or willfully permits to be misapplied, or takes and carries away with intent to steal, or knowingly converts to his use or the use of another, any moneys, funds, assets, credits, goods, or other property…

“Other Property”

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What’s The Big Deal?!

US Department of Commerce reports that 75% of employees will steal from employer at least once. • Half of those will steal as much as possible until they are caught.

What’s Your Price?!

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Fraud Triangle

“The Fraud Triangle”

FraudTriangle

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Don’t get freaked out, but….

Everything in the world can be: • Cheated • Scammed • Stolen • Harmed • Damaged

Why People Lie, Cheat & Steal…

Non-Kleptomania theft occurs primarily out of 4 main things: } Ignorance - People just pick things up without realizing they belong to someone else. } Necessity - some people steal food and clothes when starving or in need. } Greed - this one is pretty straightforward. } Hatred - wanting the other to be miserable, can also can be revenge driven.

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Why People Lie, Cheat & Steal…

• 49% • 43% • 8%

Out of need To get even Out of greed

- Kessler & Associates

Why People Lie, Cheat & Steal…

Impulse disorder: “Kleptomania” } Recurrent failure to resist impulses to steal objects that are not needed for personal use or their monetary value. } Increasing sense of tension immediately before committing the theft. } Pleasure or relief at the time of committing the theft. } Stealing is not committed to express anger or vengeance and is not in response to a delusion or hallucination. } The stealing is not better accounted for by Conduct Disorder, a Manic Episode, or Antisocial Personality Disorder.

-DSM-IV

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Why People Lie, Cheat & Steal: It’s EASY!

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Seriously, it’s a Big Deal?!

$1.00 F&B Revenue

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Over Pour

“The Company Can Afford It” • The typical US company losses up to % of it’s annual revenue to fraud. • NIGC reports tribal gaming revenue hit _______. • Average of $_______ per operation.

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“The Company Can Afford It”

• The average dishonest employee will cost the company between $1,023 and $1300 per year. • Multiply this by the number of employees at your property… • Between $900,000 and $1,200,000

Quiet Quitting

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Don’t Forget the F.I.S.H. !!

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Ronald Harris

Nevada State Gaming Control

Prevention

Every camera, control, policy and procedure is in place to protect one of three things:

• Employee • Guest • Company

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Surveillance Media Devices – Best Practices

•

We’re not just worried about cameras anymore

• Department policy should address possession and use of personal media devices in the video room • Devices are not allowed at the console; provide place to store them • Disable USB ports or use software to control capabilities • Devices at the console are subject to inspection

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Covert Surveillance – Best Practices

• Double check Policies and Procedures to make sure proper notifications are in place • Document process; start to finish • Independent approval (not Surveillance) • Save ALL of the footage FOREVER • Save in a read only format like DVD

Surveillance Liability Policies

Inspections

OUR CASINO wishes to maintain a work environment that is free of illegal drugs, alcohol, firearms, explosives, weapons, or other improper materials. To this end, OUR CASINO prohibits the possession, transfer, sale or use of such materials on its premises.

OUR CASINO requires the full cooperation of all Employees in administering this policy.

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Surveillance Liability Policies

Inspections

Desks, lockers and other storage devices may be provided for the conveniences of Employees but remain the sole property of OUR CASINO. Accordingly, they, as well as any articles found within them, can be inspected by any agent or representative of OUR CASINO at any time, either with or without prior notice.

Surveillance Liability Policies

Inspections

OUR CASINO prohibits theft or unauthorized possession of the property of Employees, OUR CASINO, visitors, and customers. To facilitate enforcement of this policy, OUR CASINO or its representatives may inspect desks, lockers, packages, purses, bags, or other personal belongings of any or other persons entering and or leaving the premises or property of OUR CASINO.

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Surveillance Liability Policies

Workplace Monitoring

Workplace monitoring may be conducted by OUR CASINO to meet regulatory requirements, and to ensure quality control, to identify safety concerns, detect theft, misconduct, and discourage or prevent acts of harassment and workplace violence, and improve customer satisfaction. Therefore, OUR CASINO may conduct video surveillance of non-private workplace areas; and record or monitor telephone communications. OUR CASINO is sensitive to Employee privacy, and efforts are made for workplace monitoring to be done in an ethical and respectful manner.

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What’s the worst that could happen?

• Investigation • Suspension • Termination • License Revocation • Civil/Criminal Prosecution

State Penalties (Example)

• Under $50

• Maximum fine: $1,250 • Maximum imprisonment: 30 days

• Under $750

• Maximum fine: $6,250 • Maximum imprisonment: 1 year

• More than $750

• Maximum fine: $125,000 • Maximum imprisonment: 5 year

- ORS 161, 164 & 167

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18 U.S. Code § 1163 - Embezzlement and theft from Indian Tribal Organizations

• $1,000 or less

• “Shall be fined” • Maximum one year in prison

• More than $1,000 • “Shall be fined”

• Maximum five years in prison

- 18 USC Sec. 1163 37

18 U.S.C. § 1168 -Theft by officers or employees of gaming establishments on Indian lands

• $1,000 or less

• Maximum $250,000 fine • Maximum five years in prison

• More than $1,000

• Maximum $1,000,000 fine • Maximum twenty years in prison

- 18 USC Sec. 1168

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Key Take-aways • People will steal for many, many reasons • Every game can be cheated • Every person can be conned • Follow sound purchasing & inventory practices

• Every standard should protect the guest, employee or company • Don’t be a trail horse, if it doesn’t look right…look closer!

Key Take-aways

• Surveillance and Regulatory personnel are capable of making bad decisions too • Set standards for personal media devices in your video room • Be very aware of covert Surveillance and follow best practices • Make sure policies and procedures mitigate liability issues • Be ready for the legalities of what we do: good lines of communication with those involved in process

11/28/22

Abe Martin, CFE, CSP abe@casinocryptology.com 931-CRYPTIC (279-7842) www.casinocryptology.com

Vetting Your Vendor

Scope of Screen

Screening Subjects • Company • Principals • Employees

Screening the Company

• 5

Secretary of State Search

http :// www.coordinatedlegal.com/SecretaryOfState.html

SOS Business Entity Search

Dunn & Bradstreet (D & B Search)

Viability 1 Score

Viability 2 Score

PAYDEX Scores

Screening the Company

• Credit Bureaus • Hybrid Reports

Screening the Company

• Business Credit Reports

– Trans Union • Based in Chicago, founded in 1968. Collects and reports information on 200M US consumers and a billion worldwide. Business reports are available. – Experian • Based in Dublin, Ireland, its US headquarters is in Costa Mesa, California in 1996 (used to be part of TRW founded in 1968). Collects and reports information on 235M US consumers, and a 1 billion worldwide, with operations in 37 countries. Business reports are available. – Equifax • Based in Atlanta, Georgia, founded in 1899. Collects and reports information on 800M US consumers and 90M businesses, with operations in 24 countries.

Screening the Company

• Hybrid Reports

Screening the Company

Additional Resources • http://www.coordinatedlegal.com/ • https://www.corporationwiki.com/ • https://en.wikipedia.org/wiki/List_of_company_registers

• http://www.tribaltrac.com/ • https://www.innovalinq.com/

Screening the Principals

• See Due Diligence Best Practices • Internal Investigations

Screening the Principals

• Internal Investigations

Screening the Principals

• Internal Investigations

Screening the Principals

• Experian Business Principal Report

Screening the Principals

International Screening and GDPR

International Screening is Growing

• According to recent data from the Bureau of Labor Statistics, 15.9% of the total U.S. workforce were foreign-born • Risks associated with not screening are too high • Heightened awareness of global security risks • Costs are coming down – Competitive Marketplace – Recognized Means of Economic Development • Increased M & A Activity • Myths are becoming less relevant

International Screening FAQ & Myths

MYTH # 1 • International Screening is too difficult and complicated.

• The basic concepts we apply in the U.S. for acquiring information such as Criminal, Credit, Education and Employment apply Internationally. • While there are over 200 countries and territories, only 20 countries are frequently ordered. • Requirements and Descriptions for searches from various countries are readily available. • More and more standardized information and resources are available.

International Screening FAQ & Myths

MYTH # 2 • International Screening is unreliable .

• All countries maintain some form of criminal records. • Countries continue to improve record-keeping. • Information is obtainable by utilizing the appropriate resource for a particular country. • The number of professional researchers is growing rapidly, competition is driving quality. Accuracy is paramount. • Country-specific customs and social norms will determine the types and comprehensiveness of information that can be obtained. 23

MYTH # 3 • International Screening is too expensive . • An increased trend to automate International records management in various countries continues to drive down costs. • There has been an increase in the number of local researchers worldwide resulting in lower fees and overall costs. • Recognized as a means of economic development, as demand increases, economies of scale tend to reduce costs. International Screening FAQ & Myths

International Screening FAQ & Myths

• Turn Around Time for criminal searches currently averages 6 - 7 days for the 20 most commonly requested countries. Credit and MVR up to 10 days. • Automation allows for 24/7 data collection worldwide in partnership with many global researcher networks. • Processes to accommodate individual country information retrieval requirements has been streamlined. Information and pricing is readily available. • Many countries have converted from paper records to electronic systems making access faster and easier.

MYTH # 4 • International Screening takes too long .

International Screening FAQ & Myths

MYTH # 5 • “I Never Get a ‘Hit’”! Records always come back clear.

• Historically, the hit rate for International Searches is extremely low versus domestic: 1 - 2% v. 10%. • In many instances, a person cannot leave their country for the U.S. if they have a criminal record, thus resulting in lower hit rates. • “Hits” vary dramatically by country: in some countries criminal records can be “Spent” (i.e., Australia). • “Hits” can be more prevalent in some countries (i.e., Philippines and Canada vs. India).

International Screening Products

Selecting A Provider • PBSA (formerly NAPBS) Member • Accredited • Price and Turnaround • Reports are in English • Beware of Online Resources • Beware of Instant Records

Available Searches

Criminal

Civil Litigation

Credit

Education

Professional License

Employment

References

Bankruptcy

Sanctions

Media

Financial Regulatory Driving Abstracts

International Criminal Records

General Requirements •

• Available in 200 Countries, 20 are most common. • Include repository searches and direct searches of law enforcement agencies, government offices and courts. • Professional searches are conducted legally. • TAT averages 6-7 days, but can take up to 10.

First Name and Last Name

Date of Birth

• •

Full Address while in Country Additional Requirements • Mother’s Maiden Name (Mexico) • Father Full Name (India) • Social Insurance Number (Canada) • Place of Birth (Japan), Name in Kanji • Any Government Issued ID • Country-Specific Authorization Forms (UK, PHIL, CHINA, AUST)

Top 20 Countries Criminal Records

How to Validate Canadian SIN

• Multiply the SIN by: 121 212 121 (if you get a 2 digit #, add the digits). • Add total digits together. • Must be divisible by 10. • First digit indicates Province of registration.

How to Validate Canadian SIN

• Multiply the SIN by: • 121 212 121 (if you get a 2 digit #, add the digits). • Add total digits together. • Must be divisible by 10. • First digit indicates Province of registration.

Test: 130 692 544 121 212 121

Test: 130 692 544 121 212 121 160 394 584 How to Validate Canadian SIN

= 40 VALID

Other searches

• Civil Search: Available in 150 countries. • Motor Vehicle / Driving Abstracts: Available in 50 countries. All countries require clear copy of front and back of license. Many also require additional authorization. • ID Check: Available in 200 countries. Includes Identifications, Voter Registration and Passport Validation Searches. • Credit: Available in 160 countries. – Sometimes requires multiple searches from several sources.

Verification / References • TAT: 3-10 Days. •

Education: Usually have additional fees.

Professional License

•

References

•

Media •

NOT limited to Google or Social Media Local Language Searches which include: – News Agency Information containing negative press,

•

derogatory information, political affiliation, business associations, etc.

Screening in China and Japan

• CHINA does not have a criminal search per se, because those are only conducted by the Government. What is available is an “irregularity search” through the Ministry of Public Security. They house everyone’s criminal and credit information. • JAPAN is similar to China in terms of disallowing a criminal search. However, an “Illicit Activity Database Search” can be conducted that includes criminal records. • Court records are not available to the public • Many records obtained are stored in a proprietary database and it is a manual process and includes names, case reference, and offense • Limited in nature, only contains offenses in Tokyo and Osaka, the two main urban areas accounting for 20% of Japan’s population • Supplemented with a media press search. A low crime rate makes detection of offenses easier in that minor crimes are even reported and documented in the press. Other offenses such as DUI, theft, assault, and minor drug charges are listed

Screening in Mexico

National •

A search conducted through the State Superior Tribunal of Justice Courts and Courts of First Instance. This search does not contain information from the Mexican Supreme Court of Justice. Local - Recommended • A local criminal search conducted through the state attorney general's office based on the candidate's residential address. Certificates of criminal records are available in most states. (Certificates results cannot be obtained in Baja California (North), Tabasco, Veracruz and Zacatecas as they contain biographical data specific to the candidate; the authorities will not provide that information other than the results of the search. • For these jurisdictions, the search is conducted through the Secretary of Public Security (SSP). Full conviction data is provided. Data is updated monthly.) • As in the United States, the scope of the Local search does not include Federal crimes (large narcotics cases, weapons violations, money laundering, kidnapping, and some financial crimes). • Requirements : Full name, mother’s full maiden name, date of birth, complete address for the search, Mexico ID number (CURP or RFC preferred; IFE or passport number can be accepted). For searches in Baja, a copy of the ID will be required.

Screening in India

ID Check

•

• Criminal Records – Local magistrate court searched in-person by an attorney and the national JUDIS database (not obtained by police as some public officials can be corrupt and demand money and/or be bribed in return for a cleared report. • Must have Father’s Full Name and Complete Residential In -Country Address (Door Number, Street Name, Area Name, City Name, State – India is searched and categorized by blocks more than by districts or states like most other Countries. • Tribunal, District, High Court Searches • Serious Offenders and Most Wanted • Civil – High Court Searches • Motor Vehicle Records • Employment Verification - Additional documents may be requested (Experience Letter, Service Certificate, Pay Slips, Etc.) • Education Verification - Additional documentation may be requested (legible copy of Degree, Diploma, Certificate, etc.). • Article 21 http://www.legalserviceindia.com/articles/art222.htm • Credit Information Companies Regulations Act (2005) http://rbidocs.rbi.org.in/rdocs/Content/PDFs/69700.pdf

Screening in Canada

National Criminal Record –

•

Obtained from the Canadian Police Information Center (CPIC) and generally covers all provinces and territories within Canada. CPIC does not cover all levels of convictions. – Special disclosure and authorization form required and must be notarized along with copies of two IDs – Report shows Incomplete or Match of Information Provided based on what the applicant self discloses on their declaration of criminal record. – Criminal records are not returned with this search. – Fingerprints may need to be submitted, which may delay the turnaround time. • Provincial Search — when searched with a CPIC, is the most accurate nationwide search. – Address based search covering a province. The Provincial sources do cover all levels of convictions, but some courts or dispositions may not be included. – Recommended with the CPIC for a true nationwide search – Usually comes back the same day • ID Check thru Credit Bureau • Credit Reports • Motor Vehicle Records • Civil – Provincial Court Searches • Employment and Education Verification

Personal Information Protection and Electronic Documents Act (PIPEDA) www.priv.gc.ca

International Screening in Gaming

TOP FIVE COUNTRIES SEARCHED • Australia • Canada • United Kingdom • New Zealand • Japan

International Screening Delays

• ITALY is one of the biggest countries where whole companies close down and everyone leaves for almost the entire month of August • POLAND can have delays in the month of July • JAPAN many workers get about a week off around the end of April and beginning of May for Golden Week

International Screening Concerns

• Some countries suspicious of the process (i.e., Germany) • Some countries slow to embrace screening as a valid business process (i.e., Chile). • Some countries have very strict data protection laws (i.e., Japan) • EXPAT versus Nationals • No recognition of Sovereignty, FCRA, State or Federal Laws • Country Specific Requirements – Authorizations – UK, PHIL, CHINA, AUST, ITALY • Language Barriers – Translation Issues – Japan requires name in Kanji • Navigating Unchartered or Changing Climate • GDPR

GDPR

European Union

What is GDPR

• The General Data Protection Regulations (GDPR) is new EU legislation that comes into effect on May 25 th 2018. • It very clearly sets out the ways in which the privacy rights of every EU citizen must be protected and the ways in which a person’s ‘Personal Data’ can and can’t be used. • It places the onus on any person or entity involved in the processing of a person’s information (Data Controller/Data Processor) to comply with the legislation and to demonstrate compliance • It carries significant penalties for non-compliance

GDPR

GDPR Key Principles

The key objectives of Data Protection can be summarised as follows:

1. Lawfulness, Fairness, Transparency 2. Purpose Limitation (Use only for one or more specified purposes) 3. Data Minimisation (Collect only the amount of data required for the specified purpose(s)) 4. Accuracy (Ensure data is kept up to date, accurate and complete) 5. Storage Limitation (Kept for no longer than necessary for the specified purpose(s)) 6. Integrity and Confidentiality (Processed ensuring appropriate security of data) 7. Accountability (Essential not only to be compliant, but to be able to demonstrate compliance)

How to Comply

1. Becoming Aware 2. Becoming Accountable 3. Communication with members 4. Personal Privacy Rights 5. Subject Access Requests 6. Legal Basis 7. Consent 8. Children’s Data 9. Reporting Breaches 10.Impact Assessments 11.Data Protection Officers 12.International Organisations

Personal Privacy Rights

These rights include: • Subject Access • To have inaccuracies corrected

• To have information erased • To object to direct marketing • To restrict processing of their information including automated decision making • Data portability - Ability to receive all of their information in a standard format to move to another provider

Subject Access Request

• Under Data Protection, a person has always had the right to request access to all of the information held about them • This is called a Subject Access Request (SAR) • Subject Access Requests must be completed within one month free of charge • Holding an accurate inventory of information will be a key enabler for completing SAR efficiently • Data has to be provided in a standard format • The person must also be informed of further information, including the relevant Retention Periods for the data held and their right to have inaccuracies corrected

Legal Basis

• Processing of Personal Information can only occur when there is a legal basis for carrying it out. • Legal Basis can be established where one of the following applies: – The person has given explicit consent – Necessary for performance of a contract – Compliance with a Legal Obligation – To protect the vital interests of the person – A task carried out in the public interest – For the legitimate interests of the data controller

Consent

• Individuals must be informed of what their data is going to be used for, who will have access to it, where it will be stored and how long it will be held for • They must give their consent for their data to be used • Consent must be ‘ freely given, specific, informed and unambiguous ’ • Members cannot be forced into consent or unaware that they are giving consent • Obtaining consent requires a positive indication of agreement – it cannot be inferred through silence (not objecting), pre-ticked boxes or inactivity • Consent must be ‘ refreshed ’ – It cannot be deemed as indefinite • Consent must also be verifiable – Data Controllers must be able to demonstrate that consent was given and an audit trail should be maintained • ‘Legal Basis’ can be used to process information in the absence of consent in certain, very specific, circumstances • It must be easily possible for a person to withdraw their consent

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