By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
THE former executive director of the now-disbanded Commonwealth Casino Commission has pushed back against a recent Washington Post investigative article on the Saipan casino, saying claims about money laundering are based on speculation rather than evidence.
In a statement to Variety on Wednesday, Andrew Yeom said he wanted to clarify what he described as “certain facts” to address what he believes are misconceptions created by portions of the article.
The Commonwealth Casino Commission was disbanded through Executive Order 24-2 issued by the late Gov. Arnold I. Palacios earlier this year. Despite that, Yeom said he felt it was his “duty to explain to our people” what he described as speculative claims in the Post article regarding alleged money laundering and a lack of anti-money-laundering safeguards at Imperial Pacific International.
Yeom said the CCC enforced its regulations and minimum internal control standards to ensure the exclusive casino license holder complied with Title 31 of the Bank Secrecy Act to prevent money laundering.
He said the commission regularly mandated and monitored Imperial Pacific International’s know-your-customer, or KYC, requirements and compliance with AML measures, as required by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network, or FinCEN.
To further strengthen AML compliance, Yeom said the CCC recommended that IPI hire Kenneth J. Hines, a former senior law enforcement official with IRS-Criminal Investigation. Yeom said Hines previously worked with IRS and FinCEN on enforcement actions, including investigations involving the former Tinian Dynasty Hotel and Casino, which was eventually fined $75 million for violations of the Bank Secrecy Act.
“So who is better than Mr. Hines to ensure compliance with federal laws, especially in the area of money laundering?” Yeom said, adding that claims in the Post article that IPI repeatedly violated AML laws were made “with no actual data to show for it.”
“She keeps misleading readers about IPI’s alleged money laundering violations,” Yeom said, referring to the Post reporter. “If that were the case, IRS and FinCEN would have been all over it, and Mr. Hines would have self-reported any violations to the commission. That never occurred, and we monitored AML compliance with the highest level of scrutiny.”
Yeom said the CCC required IPI hotel and casino management and staff to undergo AML training through third-party vendors that organized annual training sessions and conferences. He said the commission verified completion of those programs to ensure compliance.
Yeom said the CCC implemented numerous measures to ensure IPI complied with AML laws and regulations and that, to his knowledge, no serious money laundering violations stemming from casino gaming operations were established.
While acknowledging that IPI owner Cui Li Jie and her son, Ji Xiao Bo, may have operated highly profitable junkets in Macau, as cited in the Post article, Yeom said operating a casino in Saipan involved “strict AML laws and regulations with extensive oversight.”
“Accusations of massive money laundering appear to be misconstrued and based on speculation rather than factual data or concrete evidence,” Yeom said.
Yeom also acknowledged that the FBI, IRS and U.S. Treasury have investigated IPI and its original owners for money laundering, but said those probes did not result in indictments on the most serious allegations.
“It may be partly because the probes lacked federal resources and attention, as the article suggests,” Yeom said. “But it is also conceivable investigators needed more credible data for criminal prosecution. Until such time, this article is based on hearsay and speculation rather than factual data.”
Yeom added that the CCC and the CNMI government had limited enforcement tools to compel compliance, including issuing warnings, imposing fines, ordering corrective actions, suspending licenses, or pursuing license revocation.
He said the commission used all of those tools in its dealings with IPI.
“I even returned briefly in 2024 to see the revocation hearing through its final day of deliberations,” Yeom said. “That enforcement action ultimately forced IPI to file for bankruptcy one day before the revocation deliberation concluded.”
Yeom said the CCC and the CNMI government, with assistance from the Office of the Attorney General, took all possible enforcement actions against IPI while affording the company full due-process rights under administrative and judicial rules.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
