Money laundering, 101

[regnis]

I think what RS is trying to say is that the IRS or other feds could still question how you won 100,000, then lost the whole 100,000, yet still have 100,000 in your bank account. It is kind of like where Rob says he won 1,000,000 but was able to write it all off. Then people say that you didn't have a million profit, you had zero profit if you wrote it all off. But he says he still has the million.

[Alan Mendelson]

Of course they could question it. The whole thing is illegal, isn't it? And if anyone looks hard enough they're going to catch the bad guys.

I've caught plenty of bad guys during my career. I even put them in federal prisons for mortgage frauds and all sorts of book cooking.

Any fraudulent scheme can come undone.

The question was how to launder money: this is a way to do it. And a way to defer taxes on the profit. Will it work? Only until someone looks hard enough.

[OneHitWonder]

I think what RS is trying to say is that the IRS or other feds could still question how you won 100,000, then lost the whole 100,000, yet still have 100,000 in your bank account. It is kind of like where Rob says he won 1,000,000 but was able to write it all off. Then people say that you didn't have a million profit, you had zero profit if you wrote it all off. But he says he still has the million.

Singer and Alan are "street smart". They're not going to tell you all of their secrets, either. The battle of the system versus advantage players.

You have to figure that the authorities wouldn't question any of this stuff with a ten-foot pole. Lol.

(Yes, I jest, but these conversations become so f-ed up. Why? That is the question.)

[Alan Mendelson]

Alan, what good is claiming $100K in profits when you report that you last that amount at the casino?

Since you reported it as lost, you cannot claim to still have $100K in now laundered care free cash.

OMG

Once again there was NO loss. You just claim a loss to sidetrack the IRS.

Gee. If I have a million dollars in the bank but say on my 1040 that I lost a million dollars.... do I still have the million dollars in the bank? Yes. Isn't that clear to you?

If you're going to commit a crime... go for it all the way.

If you are going to launder drug money, then tell the IRS you lost it gambling.

Duh.

LOL. This is really funny.

[kewlJ]

Gee. If I have a million dollars in the bank but say on my 1040 that I lost a million dollars.... do I still have the million dollars in the bank? Yes.

Yes, you do still have the million dollars in the bank. BUT...you still can't explain where it came from. You are showing a million dollar won and lost gambling....so that is a wash. You still have to explain where that million in your bank account came from. And believe me, not only the IRS, but the Financial Crimes division and DEA are all going to be closely taking a look at all your financials. You still can't explain where that money came from.

And this is exactly the problem that some professional gamblers / AP's have when they try to not report all their income/winnings. If you have large chunks of money in bank accounts or make purchase a home, or make other large purchases, you better be able to explain where those funds came from. Edit: AND you better be reporting it.

[Alan Mendelson]

Absolutely kewlj you can't explain where it comes from. Crime does not pay. Don't sell drugs and don't launder drug money.

[RS__]

Absolutely kewlj you can't explain where it comes from. Crime does not pay. Don't sell drugs and don't launder drug money.

You can explain where it came from if you just say you won it gambling.

@OneHitWonder, no, Alan & Stringer are the exact opposite of street smart. Sorta like how Rob uses his "soft profit system" so he can claim he always walks out a winner. Sure, he might have lost more than he won, but he still won something, so he's a "winner". Apparently Alan thinks you can do the same thing with illegally gotten money come tax season.

[RS__]

Meh, Alan's not worth wasting my time, neither reading his dribble nor responding to his idiotic ideas. Blocked.

[Alan Mendelson]

OMG aren't you guys going a little bit crazy talking about theoretical criminal activity? LMAO

[MisterV]

There is nothing "theoretical" about laundering money.

Alan's idea is for the birds.

Crooks launder large sums daily and get away with it, but not that way.

[Alan Mendelson]

Yep my idea is for only what you can buy into at a casino slot machine or table game. For big money you'd do a business "bust out." But that's Money Laundering 102.

[Alan Mendelson]

There are various articles on the web about money laundering and casinos. This thread was started with the question about casinos.

I've long been intrigued with the way people "launder" their ill gotten gains, and am aware casinos are often used for this purpose.

What things do people do to launder money in casinos, and what countermeasures are in place to help prevent it?

And here are the methods listed in Wikipedia:

Casinos: In this method, an individual walks into a casino and buys chips with illicit cash. The individual will then play for a relatively short time. When the person cashes in the chips, they will expect to take payment in a check, or at least get a receipt so they can claim the proceeds as gambling winnings.[14]
Other gambling: Money is spent on gambling, preferably on high odds games. One way to minimize risk with this method is to bet on every possible outcome of some event that has many possible outcomes, so no outcome(s) have short odds, and the bettor will lose only the vigorish and will have (a) "winning" bet(s) that can be shown as the source of money. The "losing" bets will remain hidden.

And here's the article: https://en.wikipedia.org/wiki/Money_laundering

If Mister V wants to discuss other methods of laundering big money I suggest he look at the full article which has ideas that range from buying banks to running the money through big businesses. But when it comes to casinos, this is pretty much how it's done and that's what he originally asked for.

[Alan Mendelson]

By the way, if you ever saw the original documentary "Cocaine Cowboys" there is a news clip of me reporting about a bank in the Ft. Lauderdale area that was accused of being a "cocaine bank" because it was being used to launder drug money. Back in the 1980s when I worked at WTVJ in Miami I reported on every conceivable drug money laundering scam ranging from owning banks to buying and selling cars to high rise construction. There were no casinos in Florida back then.

[OneHitWonder]

Going back and forth with b.s. can be fun but you seem to actually believe your b.s. stories so it's a little weird.

On a gambling board, I think it's called straight-up mental illness.


@RS__ I was making a joke. On second thought, it's a good time to make my last gambling forum post, ever. Can't sink much lower than this.

[Alan Mendelson]

You can explain where it came from if you just say you won it gambling.

Yes and No. One of the tests for money laundering via casinos is the "resource test" where they want to see if you actually have the resources for making the bets that win.

Of course if you won the lottery with a $2 ticket no resource test is required. But casinos are different. Let's say they took a look at your check that was deposited. The check comes from "The RS Casino." The first thing the IRS and other investigators will do is see how that check was generated. Did it come from tables or slots or was there a $2 entry fee for a $100,000 drawing? If it came from table play or slot play they will want to know about the bets made including time, denomination, etc.

Here's where it gets sticky: money launderers are not going to play with a player's card. Okay, so what does the FBI and the IRS and the DEA do? They ask the casino to review the tapes.

Well... it gets stickier. It's unlikely the casino kept the tapes beyond 72 hours and it's likely the investigation into money laundering started months or even years after the actual check was written.

That's another way these "gamblers" can squeak through especially if it is done at different casinos without any regular pattern. I will also refer you to the various articles about using casinos to launder money. Just what I have been writing.

Of course if the money launderer has forged an ID he doesn't file tax returns and doesn't give a hoot about the IRS probing his taxes either. We never even discussed that but that is another way the money launderers hide.

[coach belly]

it's a good time to make my last gambling forum post, ever.

[MisterV]

OHW, your posts are confusing.

Sometimes they indicate that you are reasonably well-grounded in reality; at other times it's as if you're astral traveling in the bitter cold near the Oort cloud.

[AxelWolf]

I think there is a difference between washing money and laundering it. Washing is exchanging bills (usssuly turning smaller bills into bigger ones). Oftentimes people think it's all one in the same. Even if you Google it people use the term washing instead of laundering.

It's best if you can do both at the same time and make money doing it. More on that later.

[blackhole]

You can explain where it came from if you just say you won it gambling.

Yes and No. One of the tests for money laundering via casinos is the "resource test" where they want to see if you actually have the resources for making the bets that win.

Of course if you won the lottery with a $2 ticket no resource test is required. But casinos are different. Let's say they took a look at your check that was deposited. The check comes from "The RS Casino." The first thing the IRS and other investigators will do is see how that check was generated. Did it come from tables or slots or was there a $2 entry fee for a $100,000 drawing? If it came from table play or slot play they will want to know about the bets made including time, denomination, etc.

Here's where it gets sticky: money launderers are not going to play with a player's card. Okay, so what does the FBI and the IRS and the DEA do? They ask the casino to review the tapes.

Well... it gets stickier. It's unlikely the casino kept the tapes beyond 72 hours and it's likely the investigation into money laundering started months or even years after the actual check was written.

That's another way these "gamblers" can squeak through especially if it is done at different casinos without any regular pattern. I will also refer you to the various articles about using casinos to launder money. Just what I have been writing.

Of course if the money launderer has forged an ID he doesn't file tax returns and doesn't give a hoot about the IRS probing his taxes either. We never even discussed that but that is another way the money launderers hide.

I think there is a difference between washing money and laundering it. Washing is exchanging bills (usssuly turning smaller bills into bigger ones). Oftentimes people think it's all one in the same. Even if you Google it people use the term washing instead of laundering.

It's best if you can do both at the same time and make money doing it. More on that later.

Put on your boots and get your shovels ready, It's time for some top of the line AP bullshit 101.

You fucken morons are getting pathetic without even a clue. The stupid meter went so far it snapped.

[mickeycrimm]

Put on your boots and get your shovels ready, It's time for some top of the line AP bullshit 101. You fucken morons are getting pathetic without even a clue. The stupid meter went so far it snapped.

Blackhole ruining another good thread. His only purpose here is to troll. No useful contributions.