CG Technology, Nevada gaming regulators tentatively settle complaint

LAS VEGAS -- CG Technology, formerly Cantor Gaming, and the Nevada State Gaming Control Board Gaming Commission have reached a tentative agreement to settle a complaint state gaming regulators filed Monday.

“I can confirm we’ve had long negotiations over the weekend,” Gaming Control Board Chairman A.G. Burnett said. “We think we have come to some terms agreeable to both sides to resolve the matter.”

The 18-count complaint alleges Lee Amaitis, president and CEO of Cantor Gaming, and the company failed to supervise Michael Colbert sufficiently to prevent his illegal sports gambling activities.

Colbert, the former vice president of race and sports risk management at M Resort and Cantor Gaming, was arrested Oct. 24, 2012, in connection with an illegal offshore sports betting ring.

Colbert pled guilty to a felony charge of conspiracy in U.S. District Court in New York on Aug. 21. According to the indictment, Colbert was an agent in the illegal betting ring who recruited bettors, maintained existing bettors, collected losses and paid out winnings.

“The failure to supervise Michael Lloyd Colbert sufficiently to prevent his illegal gambling activities made in significant part possible by his position with Cantor Gaming is a violation of Nevada (gaming regulations),” the complaint said. “This constitutes an unsuitable method of operations, and, as such, is grounds for disciplinary action.”

Colbert conducted his “illegal gambling activities” through the use of his position. The complaint said Colbert’s actions took place as he was under direct supervision of Amaitis, who is president and CEO of the gaming company.

“Matters in the complaint stem from the illegal activity of a former employee,” CG Technology said in a statement. “The company conducted its own extensive internal analysis of Colbert’s actions and of the company’s systems, operations, and procedures, and has implemented additional … compliance processes.”

CG Technology expects to “finalize this matter with the board soon.” As of Monday, terms of the tentative agreement were not disclosed and no hearing date had been scheduled.

Gaming regulators also claimed that Gadoon Kyrollos, a high-volume gambler with Cantor Gaming, hired Paul Sexton and others as messenger bettors to place wagers for him. In September, Sexton pled guilty to money laundering and forfeited $600,000.

The complaint said Colbert knew Sexton, who placed approximately 4,464 wagers with Cantor Gaming, was a messenger as early as July 2011.

The violations contained in the 35-page complaint were dated and filed Monday. The complaint also includes violations of state gaming regulations beyond Colbert’s illegal activities.

Gaming regulators said eight of 19 account wagering applications requested by the board’s audit division were missing. The bookmaker also did not list Pascal Bartoli, supervisor at M Resort, and Michael Miller, book supervisor at M Resort, on the key employee report submitted to gaming regulators.

The complaint also alleges that on Oct. 1, 2010, Nicolas Jordan, a sports book writer, wrote 13 pari-mutuel tickets for himself while on duty at Cantor’s book at the M Resort, and Ryan Munoz, cashed a winning money line ticket on Oct. 7, 2010, on the Texas Rangers while on duty at the M Resort.