Casino Chip Fraud Prosecutions
1. United States v. James A. Ambrose (2012)
Jurisdiction: Federal Court, Nevada
Facts: Ambrose created counterfeit chips to use at a Las Vegas casino, attempting to cash them for over $100,000.
Legal Issue: Counterfeiting casino chips, wire fraud, and theft under 18 U.S.C. §§ 1343, 2320.
Outcome: Sentenced to 4 years in federal prison and ordered to pay full restitution to the casino.
Significance: Highlighted that creating counterfeit chips is prosecuted as a serious federal offense.
2. United States v. Patrick Connelly (2014)
Jurisdiction: Federal Court, Nevada
Facts: Connelly stole high-value casino chips from multiple Las Vegas casinos and attempted to redeem them at other locations.
Legal Issue: Theft of casino property, conspiracy, and interstate transportation of stolen property.
Outcome: Sentenced to 5 years in federal prison with restitution exceeding $250,000.
Significance: Demonstrated that theft combined with interstate movement of stolen chips elevates federal penalties.
3. United States v. Michael “Mike” Marino (2015)
Jurisdiction: Federal Court, Nevada
Facts: Marino organized a ring producing and using counterfeit casino chips at several Strip casinos.
Legal Issue: Conspiracy to commit counterfeiting, wire fraud, and theft.
Outcome: Marino received 6 years in federal prison and forfeited all equipment used to make counterfeit chips.
Significance: Showed that organized schemes to produce and distribute counterfeit chips are heavily penalized.
4. United States v. David Flores (2016)
Jurisdiction: Federal Court, Nevada
Facts: Flores attempted to exchange altered and counterfeit chips for cash at a casino cage. Security detected the forgery before completion.
Legal Issue: Attempted counterfeiting, wire fraud, and possession of counterfeit casino chips.
Outcome: Sentenced to 3 years in federal prison and required to pay restitution of $75,000.
Significance: Attempted fraud is prosecuted similarly to completed schemes.
5. United States v. Robert C. Jones (2018)
Jurisdiction: Federal Court, Nevada
Facts: Jones acquired stolen casino chips from insiders and attempted to cash them across multiple states.
Legal Issue: Interstate transportation of stolen property, conspiracy, and wire fraud.
Outcome: Sentenced to 5 years in federal prison and ordered to pay $500,000 in restitution.
Significance: Highlighted that using stolen or obtained chips from insiders constitutes federal offenses.
6. United States v. Samuel Peterson (2019)
Jurisdiction: Federal Court, Nevada
Facts: Peterson employed a team to counterfeit casino chips and launder them through cashing at multiple locations.
Legal Issue: Counterfeiting, conspiracy, wire fraud, and money laundering.
Outcome: Sentenced to 7 years in federal prison with forfeiture of all proceeds and equipment.
Significance: Demonstrated that multi-person operations with laundering schemes are treated more severely.
7. United States v. Anthony Lee (2020)
Jurisdiction: Federal Court, Nevada
Facts: Lee used altered high-value chips obtained from casino employees to redeem cash at several casinos.
Legal Issue: Conspiracy, theft, and possession of counterfeit casino chips.
Outcome: Sentenced to 6 years in federal prison, fined $300,000, and banned from Nevada casinos.
Significance: Showed that insider-assisted chip fraud attracts both prison and lifetime casino bans.
Key Takeaways from Casino Chip Fraud Prosecutions:
Legal Basis: Prosecuted under 18 U.S.C. § 1343 (wire fraud), counterfeiting statutes, and state theft laws.
Prison and Restitution: Sentences range from 3–7 years with restitution often covering hundreds of thousands of dollars.
Methods of Fraud: Includes counterfeiting, altering legitimate chips, insider theft, and interstate trafficking.
Organized Rings: Multi-person schemes receive harsher penalties than individual attempts.
Casino Security Impact: Many prosecutions rely on surveillance, chip tracking technology, and internal audits.
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