General Manager/General Manager/Key Employee InvestigationsKey Employee Investigations

Presented by:Presented by:Dave VanBoxtaeleDave VanBoxtaele

SupervisorSupervisorInvestigations and Inspections Investigations and Inspections Arizona Department of GamingArizona Department of Gaming

PRE-EMPLOYMENT vsPRE-EMPLOYMENT vsPOST-EMPLOYMENTPOST-EMPLOYMENT

PRESENTATION WILL FOCUS ON- INVESTIGATIONS INTO THE ACTIVITIES OF KEY EMPLOYEES- DEFINITIONS- ORGANIZATIONAL STRUCTURES- RECOGNITION OF OPERATIONAL AND REGULATORY CONFLICTS - EXAMPLES OF VIOLATIONS- INVESTIGATIVE TOOLS &TECHNIQUES - INTERVIEW TECHNIQUES- REPORT FORMATING

I. DefinitionsI. Definitions KEY EMPLOYEE

“Means a gaming employee who performs one or more of the following functions: Count room supervisor

Chief of Security

Custodian of gaming supplies or cash

Floor manager

Custodian of gaming devices

Persons with access to cash and accounting records

Any other person whose total $ compensation is in excess of $50,000 per year

PRIMARY MANAGEMENT OFFICIAL

Means:

The person having management responsibilities under a Management Contract

Any person who has authority to hire and fire employees

Any person to set up working policy for a Gaming Operation

The Chief Financial Officer or other person who has financial management responsibility for a Gaming Operation.

GAMING FACILITY OPERATOR

Means:

The Tribe, an enterprise owned by the Tribe or

Other entity designated by the Tribe having full authority and responsibility for the on site operation, management, and security of the gaming facility.

II. ORGANIZATIONAL STRUCTURE REGULATORY VS OPERATIONAL

COMPACT –

- Provides the framework for regulatory and gaming facility operations

• GAMING FACILITY REQUIREMENTS The Tribe shall require the GFO to adopt reasonable procedures designed to provide for the following :

The physical safety of its employees

The physical safety of patrons in the Gaming Facility

The physical safeguarding of assets transported to and from the Gaming Facility and cashier’s cage

The protection of patrons and gaming operation’s property from illegal activity

TRIBAL GAMING OFFICE

Responsible for on site regulation

Enforcement of Tribal Gaming Code

Enforcement of Compact requirements

Investigating violations

Tribally licensing vendors and employees

ARIZONA DEPARTMENT OF GAMINGARIZONA DEPARTMENT OF GAMING

• Has statutory authority to monitor the Tribes Gaming Operation

• Insure the operation is conducted in compliance with the provisions of the compact and its appendices

• Such monitoring shall include the authority to investigate suspectedviolations of the Compact and its appendices

• Investigations are designed to identify and remove employees involved in illegal activities or conduct that violates the conditions set forth in the gaming compact

NATIONAL INDIAN GAMING COMMISSIONNATIONAL INDIAN GAMING COMMISSION

• Has the authority to regulate Class II games on Tribal lands

• Issues minimum internal control standardsgoverning Class III gaming

PARTNERSHIPSPARTNERSHIPS

ADOG

NIGC

TGO

= STRONG REGULATION

TRIBAL COUNCIL – TRIBAL COUNCIL –

- - Oversees gaming operation or appoints a gaming Oversees gaming operation or appoints a gaming board or management companyboard or management company

- - Hires a PMO or gaming board who is responsible Hires a PMO or gaming board who is responsible for the profitability of gaming operationfor the profitability of gaming operation

- Appoints a Tribal Gaming Commission to oversee- Appoints a Tribal Gaming Commission to oversee

TGO regulatory operationsTGO regulatory operations

GOALS :

Gaming Facility Operator – - To make a profit for the Tribe

Tribal Gaming Office – - To provide on-site

regulation

BOTH OPERATIONAL & REGULATORY ROADS BOTH OPERATIONAL & REGULATORY ROADS LEAD BACK TO TRIBAL COUNCILLEAD BACK TO TRIBAL COUNCIL

TRIBAL COUNCIL

GAMING FACILITYOPERATOR

GENERAL MANAGER

TRIBAL GAMINGCOMMISSION

REGULATION

TRIBAL GAMINGOFFICE

CASINO OPERATIONS

CREATES OVERLAPPING INFLUENCE

III. POTENTIAL CONFLICTSIII. POTENTIAL CONFLICTS

• The TGO and GFO often come into conflict when regulation negatively impacts casino operations in terms of additional time and money spent caused by:

- Having to wait for vendor certification- Having to wait for employee certification- Reluctance to report violations- Reluctance to ban good customers that can affect the bottom line- Any other number of operational vs regulatory conflicts

POSSIBLE SCENARIOSPOSSIBLE SCENARIOS

• A regular customer, spending $5,000 per week is involved in a major fight in the Casino –

• A Tribal member employee, related to a member of the Tribal Council, is involved in an on duty theft –

• The GM has a major event planned, and forgot to add additionalsecurity staffing –

• A GM advises a Tribal Council on a “lucrative” outside business investment. The investment goes bad, he promises to get their money back –

• Tribal member starting a Casino related business awarded a nobid contract to provide Casino with supplies -

• Large amount of money stolen from a slot cheating scam -

• GM trying to save the Tribe money using uncertified vendors -

EXTERNAL INFLUENCESEXTERNAL INFLUENCES

• DON’T ALWAYS HAVE CONTROL OVER OUTSIDE INFLUENCES

• TGO’S MUST REMAIN INDEPENDENT- are the cornerstone for regulation- must be allowed to do their job

• NEED TO HOLD KEY EMPLOYEE’S AND GM’SACCOUNTABLE

IV. EXAMPLES OF VIOLATIONSIV. EXAMPLES OF VIOLATIONS• Using uncertified vendors• Failure to follow certification requirements for employees• Splitting vendor invoices• Abuse of expense accounts• Manipulation of records• Failure to report compact or unusual occurrence violations to TGO• Failure to ban persons involved in illegal activity• Failure to carry out contractual duties• Failure to develop / follow adequate internal control procedures• Denying TGO access to records or other sensitive areas of facility• Violation of exclusivity agreements• Making Casino donations to charitable organizations for personal

benefit

V. INVESTIGATIVE TOOLSV. INVESTIGATIVE TOOLS

• Obtain job descriptions for employee- Helps to establish exact responsibilities- Often requires individual to ensure gaming operation is in complete compliance with Tribal / State compacts

• Obtain employment contract- Will outline if GM is entitled to travel reimbursements- Outlines severance clauses- Outlines insurance and other payroll requirements- Describes confidentiality agreements- Describes exclusivity agreements

• Memorandums, E-Mails, other correspondence to employee- Helpful when determining employee had knowledge of a compact violation or unusual occurrence and didn’t report it.- Department heads often communicate in this fashion

• Credit Card records - Often vendor purchases can be made by company credit card circumventing normal invoice requirements

• Vendor / Billing Invoices- Review for split invoices, order dates, delivery dates

• Travel expense reimbursements• Forensic examination of computer records

- will often be personal communications- goes to show where time and effort is spent- may indicate sharing of proprietary information belonging to the Tribe

• Surveillance Tape of employee misconduct- Not always available after 7 day retention period

• TGO Investigative reports - Always a good starting point - TGO violation notices or other correspondence with GFO

• Tribal Gaming Codes- Will outline duties, requirements of GM- Provides description of circumstances that would preclude Tribal licensing

> Failing to comply with or make provisions for compliance with Compact> Denial of access> etc.

• Gaming Facility Operator Manager meeting minutes- Often will document instructions by GM to his staff

• Tribal Council meeting minutes- Not always available, but good tool if provided

• Surveillance records / incident reports

• Human resources employment file- Excellent tool- Contains signed acknowledgements on sharing information- Work place discrimination agreements- Confidentiality agreements- Employee handbooks outlining job requirements

• Cell Phone records

VI. INTERVIEW TECHNIQUESVI. INTERVIEW TECHNIQUES

• PREPARE for your interview- all too often we “shoot from the hip”- review all reports, documents, compact requirements

• Design open ended questions • Tape record all interviews

- this protects you- provides an accurate record - guarantees the accuracy of any response

• Interview your suspect LAST- Conduct all other witness interviews first

* enhances your own knowledge of the case

* helps to prepare questions for your suspect

- Helps to eliminate and or strengthen allegations- Eliminates the need to go back and conduct follow-up interviews.

AND IF NOTHING ELSE

- it will make your suspect “SWEAT” for awhile andbegin to wonder what you know…..

VII. FINAL REPORTVII. FINAL REPORT• Executive Summary

- Bottom line concept- Allows the reader to digest entire report in one or two pages

• Use of index- separates interviews, support documentation for easy access

• Written Narrative- Outlines nature of report, allegations, interviews, etc

• Summary - Ties in all allegations- Determines whether sustained or unfounded- Match appropriate section of compact to sustained violations- Determine any criminal violations that apply

• Conclusion – Your final recommendations

QUESTIONS QUESTIONS

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