One of the world’s largest gambling companies fired an executive after there were allegations he engaged in shady business dealings.
According to a New York Post report, Hard Rock International fired Alex Pariente. Pariente served as the company’s senior vice president for hotel and casino operations.
The move came after a whistleblower alleged Pariente allowed for unethical money structuring practices and ignored unpaid casino markers at the company’s Punta Cana casino.
“Hard Rock International has completed its initial investigation in connection with recent public allegations regarding executives at Hard Rock Punta Cana Casino and can confirm it has separated with the executive in question,” the company told the New York Post in a statement.
Additionally, Hard Rock told the publication that it hired “two of the nation’s most respected law firms” to investigate the claims. The firms specialized in gaming regulatory and compliance.
Gambler Claims Pariente Evaded Anti-Money Laundering Laws
Last month, high-stakes gambler RJ Cipriani notified Hard Rock of Pariente’s alleged actions. Pariente. Cipriani claimed Pariente instructed an employee to break up a $100,000 deposit from a Chinese national into 33 separate deposits, totaling $3,000 each.
Thus, the casino wouldn’t need to file a report with regulators in compliance with anti-money laundering laws.
Hard Rock suspended Pariente without pay while they conducted the investigation.
It’s a similar practice that got Resorts World Las Vegas in hot water with Nevada Regulators. Former Resorts World president Scott Sibella allowed underground bookies to wager millions of dollars at the Las Vegas Strip property without reporting the transactions to the proper authorities.
As a result, the Nevada Gaming Control Board fined Resorts World $20 million, the largest fine ever doled out by the board.
Firing Allows For A Cleaner Application
The separation comes as the company enters the home stretch in its bid for a New York casino license. Hard Rock, the corporate umbrella for Florida’s Seminole Tribe, partnered with New York Mets owner Steve Cohen on the project.
The Seminole Tribe purchased the rights to the Hard Rock brand in 2007. Since then, they own and operate all the Hard Rock themed casinos worldwide. Additionally, they have exclusivity to casino gaming in their home state and are the only online sports betting operator in Florida.
The duo wants to build a casino resort just steps away from Citi Field, the Mets’ home ballpark. They submitted their official proposal at the end of June.
The New York State Gaming Commission will award three downstate casino licenses by the end of the year. However, most believe there’s only one actually up for grabs.
Empire City Raceway, an MGM-owned racino in Yonkers, and Resorts World NYC, a slot parlor in Queens appear to have the inside track for two of those. They already have an existing relationship with regulators and can easily expand their offerings.
And the competition is fierce for the final license. Bally’s wants to build a casino in the Bronx and there are three other bids for a casino in Manhattan.
Caesars Entertainment wants to build a casino in Times Square, Rush Street has a proposal for another in the West Side and the Mohegan Tribe has plans for a property next to the United Nations headquarters.
The intense competition for the final license means New York regulators will heavily scrutinize the final application. Thus, Hard Rock can’t afford a relationship with a scandal-embroiled executive.
Regulators Are Hard Rock’s Final Hurdle
Prior to regulatory approval, the Citi Field project already dealt with zoning hurdles. For the project to move forward, Cohen needed to have his ballpark’s parking lot rezoned for commercial use.
In March, the New York City Council approved the zoning change. Then, Sen. John Liu introduced a formal legislation to rezone the area.
Liu’s bill passed by a 54-5 margin in May and the bill went to Gov. Kathy Hochul’s desk. She has yet to take action on the bill. But given the support for it in the legislature, it would be a surprise if she vetoed it.
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