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

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
65 new cases of COVID-19 in Interior Health

Overall, B.C. is seeing a decrease in COVID-19 cases

Photo of handguns and illicit drugs Trail RCMP reported to have seized from a Trail man on Sunday. Photo: Trail RCMP
Drugs and guns seized from Trail man

A call came into the detachment that a man was asleep behind the wheel

RCMP are searching for Philip Toner, who is a 'person of interest' in the investigation of a suspicious death in Kootenay National Park last week. Photo courtesy BC RCMP.
Man sought in suspicious Kootenay death found in Lake Country

Philip Toner is a person of interest in the death of Brenda Ware

Rain clouds were absent for most of April in the West Kootenay. Photo: Betsy Kline
April precipitation only one-third of normal in West Kootenay

Third month in a row with below average rain fall

The Trail RCMP is sharing a warning that originated with the Nova Scotia RCMP regarding an online sexual exploitation scam targeting youth. Photo: Mohammad Metri on Unsplash
Trail RCMP warn of digital sexploitation scheme targeting youth

Police want to get the message out to victims that you are not alone.

A bullet hole is seen in the windshield of an RCMP vehicle approximately 4 km from Vancouver International Airport after a one person was killed during a shooting outside the international departures terminal at the airport, in Richmond, B.C., Sunday, May 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Homicide team IDs man in fatal YVR shooting as police grapple with spate of gang violence

Man, 20, charged in separate fatal shooting Burnaby over the weekend

Keith MacIntyre - BC Libertarian
Penticton’s Keith MacIntyre new leader of the B.C. Libertarian Party

The Penticton businessman was voted in by members of the party on May 8

Vernon North Okanagan RCMP reported to 287 mental health calls between Jan. 1, 2021, and May 1. (Black Press files)
‘It’s not the police’s responsibility to deal with mental health calls’: Vernon RCMP

RCMP remind public to take care of mental health and well-being, while better solutions are sought

Thompson Rivers University campus is in Kamloops, B.C. (KTW file photo)
Thompson Rivers the 1st B.C. university to supply free menstrual products

The university will offer the products this September

Fraser Health is using ‘targeted’ vaccination clinics in high-risk areas of the Lower Mainland. (Fraser Health photo)
B.C.’s COVID-19 decrease continues, 515 new cases Tuesday

426 seriously ill people in hospital, up from 415 Monday

The site of Sunfest, Laketown Ranch, will be open for camping this summer. (Citizen file)
Sunfest country music bash won’t be shining on B.C. in 2021

Annual Vancouver Island Festival cancelled due to COVID-19, along with Laketown Shakedown

Tla-o-qui-aht First Nation elected chief councillor Moses Martin, who was also Chantel Moore’s grandfather, speaks to media in Port Alberni on Aug. 16, 2020, during a visit from NDP leader Jagmeet Singh following the police shooting of Chantel Moore. (Elena Rardon photo)
Mother of 2 shot by police in critical condition, says B.C. First Nation chief

Community ‘devastated’ by third member of 1,150-person Vancouver Island nation shot in less than a year

B.C. Agriculture Minister Lana Popham promotes the government’s BuyBC food program in 2019. (B.C. government)
Money running out for fresh fruit, vegetables, milk in B.C. schools

‘Looking at ways to support this type of program,’ minister says

(Paul Henderson/ Chilliwack Progress file)
Experts now predict 33.6% rise in B.C. home sales for 2021

BCREA economists also predict home prices to increase by 14.3%

Most Read