B.C. government seeks $880K from alleged casino money launderer

British Columbia's director of civil forfeiture is suing to keep $880,000 paid as a bond to the Canada Border Services Agency by a man accused of being the multimillionaire leader of a criminal gang running casinos in Macao.

According to a notice of civil claim filed in B.C. Supreme Court Tuesday, Tujie Lai's spouse paid the money to the CBSA in October 2019 after Lai was handed over to Canadian authorities by the U.S. Border Patrol, which claimed he had crossed the border illegally.

The court documents claim the CBSA subsequently learned Lai — who purports to be self-employed — was wanted in China for crimes including kidnapping, extortion, and leading a criminal gang.

'Consistent with money laundering'

The lawsuit claims Lai told investigators that he transferred $12 million from Macao and Hong Kong and still had an additional $100 million at his disposal in Canadian currency in China.

The notice of claim alleges the bond money will soon be returned to Lai's spouse — Wenyi Chen — who "purports to be a homemaker."

The director of civil forfeiture claims the cash is the proceeds of crime — alleging that Lai and Chen's transactions at B.C. casinos "have exhibited several behaviours that are consistent with money laundering."

The court documents cite records from B.C.'s Combined Forces Special Enforcement Unit showing Lai paid $250,000 for casino chips in July 2017, redeeming a total of $610,000 in Canadian currency during the same period.

In November 2018, he also allegedly attended the River Rock Casino in Richmond, B.C., "and presented two bundles of $100 bills totalling $20,000 in U.S. currency, each of which were bound with a single elastic band across the middle of the bills and generally packaged in a manner not consistent with standard banking practices," the lawsuit says.

A month later, he allegedly presented $9,900 in 12 bundles of $20 and $50 bills bound with elastic bands.

"This exchange appeared to be structured in a manner to avoid the $10,000 reporting requirement," the court documents say.

"As a result, conditions were placed by the B.C. Lottery Corporation requiring Lai to prove the source of any funds brought into a casino, regardless of the amount."

'Laundromats' for the proceeds of crime

The civil claim echoes the findings of a scathing independent report on money laundering released in 2018, which found that Lower Mainland casinos had "unwittingly served as laundromats" for the proceeds of crime.

Former RCMP Deputy Commissioner Peter German said more than $100 million had passed through B.C. casinos as a way for organized crime groups, primarily from Asia, to "clean" the proceeds of illegal drug trafficking. 

The review said one Vancouver-area casino accepted $13.5 million in $20 bills over a one-month period. German called the River Rock casino the "epicentre" of the problem.

According to the lawsuit, Lai was accused of fleeing U.S. border officers back across the Canadian border on foot in July 2019. He was later apprehended by Surrey RCMP, returned to U.S. custody and then ultimately handed back to the CBSA in October 2019.

The $880,000 was paid two months later to secure Lai's release from detention.

The court documents say Lai told CBSA investigators his wealth comes from the so-called "junket industry" in Macao — the offering of lavish incentives to get high-rolling gamblers into certain casinos.

Lai allegedly said his "job duties include providing loans to gamblers as well as acting as a guarantor for loans various gamblers take out" — earning commissions for loan repayment.

The lawsuit says China's Ministry of Public Security told the CBSA Lai was convicted of criminal offences and sentenced to imprisonment in China. He was the subject of an Interpol red notice for a host of alleged crimes, including extortion, assault, conspiracy and perjury.

The director of civil forfeiture claims "the movement of significant amounts of money through a number of bank accounts, multiple exchanges of currency and the purchasing and attempted purchasing of casino chips" all point to Lai's bond money being the proceeds of crime.

Neither Lai nor Chen have responded to the lawsuit.

None of the allegations have been tested in court.