Massachusetts’ Special Commission Issues Online Gambling Report [...]
Trump Taj Mahal in Atlantic City Slapped with $10M Fine
- February 12, 2015 By Nemanja L. -
Trump Taj Mahal Casino in Atlantic City have been ordered to pay $10 million for failing to comply with the Bank Secrecy Act regulations and the anti-money laundering (AML) protocols.
The hefty fine had been issued in January, but it was only disclosed now in the Bankruptcy Court filings. The parent company Trump Entertainment Resorts Inc. admitted to violating the AML protocols and gave consent to the $10 million penalty imposed by the Treasury Department.
The Casino Will End Up Paying Less Than $50,000
However, seeing as the punishment is set to become a general unsecured claim in the company’s bankruptcy, the government could end up getting less than $50,000, with unsecured creditors tipped to receive only a small portion of the money owed.
Taj Mahal was reprimanded for repeated failure to file around half of the reports on financial transactions taking place between 2010 and 2012. United States Internal Revenue Service (IRS) had warned the gaming establishment of certain discrepancies between the customers’ names and their social security numbers, but Taj did nothing to dispel the doubts.
The Atlantic City Casino did not file reports on suspicious activity on the casino floor as they were supposed to, failing to submit 56 percent and 44 percent of required reports in 2010 and 2012 respectively.
Under the terms of the Bank Secrecy Act, the casinos are required to report all suspicious transactions of $5,000 or more, as well as any activity linked to money laundering or tax evasion.
Taj Mahal Hoping to Keep Doors Open
It appears that Trump Entertainment Resorts Inc. had no choice but to admit to the latest charges as that was the only way to boost their hopes of keeping the casino doors open.
The casino filed for Chapter 11 bankruptcy protection back in December as they received assurances from its principal creditor Carl Icahn that he will pump considerable funds into the casino in an attempt to help over 3,000 employees keep their jobs.
Even with the property losing almost $10 million every single month, Icahn is doing everything in his power to prevent the Taj Mahal from becoming the fifth major casino in Atlantic City to close its doors amidst serious decrease in earnings.