Guam – A 2 year old report from the Naval Criminal Investigative Services [NCIS] was filed in District Court last Friday and it alleges that not only illegal gambling was taking place at the now closed MGM Spa, but illicit drugs were sold there as well.
In addition, the report states that prostitution services were made available at a brothel operated by MGM owners located above the Crazy Horse strip club in Tumon.
The report is authored by NCIS Special Agent Joesph Twilley and it is dated July 9, 2010. It was submitted filed last Friday by U.S. Attorney Alicia Limtiaco in connection with the ongoing prosecution of illegal gambling charges against the closed spa’s owners and employees.
The heading on the report states: “Allegations of Narcotics Trafficking at Business Frequented by Military Personnel.” In it, Special Agent Twilley writes:
“MGM Spa has been officially closed for a couple of years; however, the owner is reportedly using the illegal underground gambling activities to launder money obtained from the sell and distribution of narcotics.”
Agent Twilley names Wai Kam Ho as a partial owner of the MGM Spa about whom Twilley writes that he “is suspected of having ties to organized crime.” Jimmy Hsiah is also named in the report as a co-owner of the MGM Spa and the report says the IRS has been looking at Hsiah for “numerous questionable banking practices.”
Ho, the report states, also “owns another establishment known as the Crazy Horse Strip Club located in Tumon.”
According to the report, “sources advised that both U.S. Navy and Air Force personnel frequent both MGM Spa and Crazy Horse in which illegal narcotics are sold.” Among the narcotics reportedly sold were “methamphetamines … marijuana .. and ecstasy.”
Special Agent Twilley cites a “cooperating witness” who alleged that an illegal brothel was operating in the apartments above Crazy Horse where “Chinese females arrive and leave every two weeks.”
In December of last year, an indictment charged 5 people with running an illegal gambling operation at the MGM Spa from “at least January 2006 … until December 14th 2010,” when the FBI raid shut them down.
The games they ran, says the indictment, were poker and baccarat, 5 nights a week, and “the defendants, as the ‘house,’ took a percentage of the winnings from each poker game and in addition charged $5 per $100 of bets for food and drink.”
Those named in the2011 indictment are:
MGM President Wai Kam Ho: indicted on 1 count of conspiracy, 2 counts of Illegal Gambling Business and 32 counts of Money Laundering.
MGM Secretary Jimmy Hsieh: indicted on 1 count of conspiracy, 2 counts of Illegal Gambling Business and 32 counts of Money Laundering.
Jennie Wen Chin Pau: indicted on 1 count of conspiracy, 2 counts of Illegal Gambling Business, 32 counts of Money Laundering, and 2 counts of structuring. [The charge of structuring relates to the practice of executing financial transactions in a way designed to avoid the creation of certain records and reports required by law].
MGM Shareholder William M. Perez: 1 count of conspiracy, 2 counts of Illegal Gambling Business and 36 counts of Money Laundering.
Pauline Perez: 1 count Conspiracy, 2 counts Illegal Gambling Business