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 pedestrian looks over a vigil set up in Nelson on Friday to mark National Day of Remembrance and Action on Violence Against Women, which is held Dec. 6 to commemorate the 1989 École Polytechnique massacre that killed 14 women and injured 10 others. Photo: Tyler Harper
Demand for safe space increases in the fall at Nelson’s transition house

The eight-bed service for women and children fleeing domestic violence has been full since Oct. 1

COVID-19. (Image courtesy CDC)
81 new cases of COVID-19 detected in Interior Health Friday

One additional staff member at Kelowna long-term care home tests positive, no new deaths

Interior Health says Salmo’s COVID-19 cases have been contained. Photo: Wikimedia Commons
Interior Health: Salmo’s COVID-19 cases are contained

Every person who tested positive has recovered

The Village of Salmo has told Cody Puckett and Ashley Nelson that clearing land at this property doesn’t constitute building a property according to a bylaw. Photo: Submitted
Work in progress? Salmo family, village at odds over property construction

Cody Puckett says he’s being evicted from his own land, which the village disputes

Finn Lydon. Photo: Submitted
UPDATE: Winlaw boy reported missing has been found

Finn Lydon was was located last evening

A snow moon rises over Mt. Cheam in Chilliwack on Feb. 8, 2020. Friday, Dec. 11, 2020 is Mountain Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Dec. 6 to 12

Mountain Day, Dewey Decimal System Day and Lard Day are all coming up this week

Demonstrators, organized by the Public Fishery Alliance, outside the downtown Vancouver offices of Fisheries and Oceans Canada July 6 demand the marking of all hatchery chinook to allow for a sustainable public fishery while wild stocks recover. (Public Fishery Alliance Facebook photo)
Angry B.C. anglers see petition tabled in House of Commons

Salmon fishers demand better access to the healthy stocks in the public fishery

(Hotel Zed/Flytographer)
B.C. hotel grants couple 18 years of free stays after making baby on Valentines Day

Hotel Zed has announced a Kelowna couple has received free Valentines Day stays for next 18 years

Farmers raise slogans during a protest on a highway at the Delhi-Haryana state border, India, Thursday, Dec. 3, 2020. Prime Minister Justin Trudeau rejected the diplomatic scolding Canada’s envoy to India received on Friday for his recent comments in support of protesting Indian farmers. Tens of thousands of farmers have descended upon the borders of New Delhi to protest new farming laws that they say will open them to corporate exploitation. THE CANADIAN PRESS/AP-Manish Swarup
Trudeau brushes off India’s criticism for standing with farmers in anti-Modi protests

The High Commission of India in Ottawa had no comment when contacted Friday

Montreal Alouettes’ Michael Sam is set to make his pro football debut as he warms up before the first half of a CFL game against the Ottawa Redblacks in Ottawa on Friday, Aug. 7, 2015. Sam became the first publicly gay player to be drafted in the NFL. He signed with the Montreal Alouettes after being released by St. Louis, but abruptly left after playing one game. THE CANADIAN PRESS/Justin Tang
Study finds Canada a ‘laggard’ on homophobia in sports

Among females, 44 per cent of Canadians who’ve come out to teammates reported being victimized

Nurse Kath Olmstead prepares a shot as the world’s biggest study of a possible COVID-19 vaccine, developed by the National Institutes of Health and Moderna Inc., gets underway Monday, July 27, 2020, in Binghamton, N.Y. U.S. biotech firm Moderna says its vaccine is showing signs of producing lasting immunity to COVID-19, and that it will have as many as many as 125 million doses available by the end of March. THE CANADIAN PRESS/AP-Hans Pennink
Canada orders more COVID vaccines, refines advice on first doses as cases reach 400K

Canada recorded its 300,000th case of COVID-19 on Nov. 16

Apartments are seen lit up in downtown Vancouver as people are encouraged to stay home during the global COVID-19 pandemic on Thursday, Dec. 3, 2020. British Columbia’s deputy provincial health officer says provincewide data show the most important area B.C. must tackle in its response to the COVID-19 pandemic is health inequity. THE CANADIAN PRESS/Marissa Tiel
Age, income among top factors affecting well-being during pandemic, B.C. survey shows

Among respondents earning $20,000 a year or less, more than 41 per cent reported concern about food insecurity

Information about the number of COVID-19 cases in Abbotsford and other municipalities poses a danger to the public, the Provincial Health Services Authority says. (Photo: Tyler Olsen/Abbotsford News)
More city-level COVID-19 data would jeopardize public health, B.C. provincial health agency says

Agency refuses to release weekly COVID-19 case counts, citing privacy and public health concerns

Carmen Robinson was last seen getting off a bus in View Royal the evening of Dec. 8, 1973. Her case remains unsolved 47 years later. (Greater Victoria Crime Stoppers)
Gone cold: Fate of B.C. teen remains a mystery, 47 years after her disappearance

Carmen Robinson, 17, was last seen exiting a bus near Victoria in December 1973

Most Read