United States Attorney's Office District of Connecticut
Press Release

March 4, 2008

NEW YORK MAN WHO OPERATED BLACK MARKET BUSINESS AT MOHEGAN SUN IS SENTENCED

Kevin J. O'Connor, United States Attorney for the District of Connecticut, announced that CHEN ZHI QIAN, 44, of Mott Street, New York, New York, was sentenced yesterday by United States District Judge Alvin W. Thompson in Hartford to two years of probation for failing to keep records for tax purposes in connection with a black market business he was operating out of the Mohegan Sun Casino. CHEN pleaded guilty to the offense on November 8, 2007.

According to documents filed with the Court and statements made in court, the Mohegan Sun Casino operates a players points system, which is a promotional program for its patrons that rewards their gaming activities and to encourage repeat visits. The program provides complementary food, hotel, retail and entertainment, and other services to patrons based on points that are awarded for patron's gaming activities. Subject to various restrictions, the points may be used to purchase, among other things, items at the retail stores and restaurants located within the casino. Each point is equivalent to $1 but has no cash value, and the points are non-transferable.

Because of the limitations of the program, a black market existed at the casino where gamblers were willing to sell their points for cash. In pleading guilty, CHEN admitted that he purchased player's points from gamblers at a significant discount, and then used those points to purchase gold coins from a retailer in the casino. CHEN then converted the gold coins to cash, thereby making a profit on the transactions.

During the course of the investigation, CHEN purchased players points from an undercover officer who was posing as a gambler. The transaction took place in a men's room at the casino and no records were generated to document this transaction for tax purposes.
According to the Internal Revenue Code, individuals who operate a business are required to keep sufficient records of their activities for the purpose of computation, assessment or collection of federal income taxes. Because CHEN failed to keep any records of these transactions, it was impossible for the Internal Revenue Service to determine his tax liability in connection with this business.

This matter was investigated by the Internal Revenue Service - Criminal Investigation Division and the Federal Bureau of Investigation. The Mohegan Sun is assisting with the investigation. This case was prosecuted by Assistant United States Attorney Michael J. Gustafson.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov