Feds Shut Down Bicycle Hotel & Casino for 'Criminal Fraud' Investigation April 04, 2017 Katie Callahan 99 Federal agents served a search warrant at the Bicycle Hotel & Casino in Bell Gardens. Less than 24 hours after being raided and shut down by federal agents, the Bicycle Hotel & Casino in Bell Gardens was reopened Wednesday morning, according to information reportedly provided to the Lo.

[toc]In a dramatic week for California’s world famous Bicycle Casino (the Bike), federal agents entered the casino to seize financial documents and shut down all play. A day later, on Wednesday, the casino reopened at 3 a.m. in the morning.

• The Los Angeles High Intensity Financial Crime Area Task Force administered the raid on 'The Bike' with search warrant in hand, blocking both parking lot entrances and ushering gamblers to the door. Rousting took many by surprise at one of the most well-known poker rooms in.
• 345 reviews of The Bicycle Hotel & Casino 'As card rooms go, The Bicycle is one of the better ones in the Los Angeles area. It's expansive, with a huge poker floor, an Asian games section and a courtyard where you can still smoke and gamble at the same time. Parking is relatively easy, with valet parking at the front entrance and self parking in the rear.

On Tuesday morning, Virginia Kice, Western Regional Communications Director/Spokesperson, U.S. Immigration and Customs Enforcement (ICE) stated:

“A federal search warrant is being executed today by members of the Los Angeles High Intensity Financial Crime Area Task Force, which includes U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; IRS Criminal Investigation; the California Department of Justice, Bureau of Gambling Control; and the United States Attorney’s office.”

Bicycle Casino Raid

The warrant was filed under seal in relation to an ongoing investigation. As a result, Kice could not comment on the “scope or nature of the investigation.”

On behalf of the casino Becky Warren said:

“We are working with authorities and currently do not have additional information,” according to the statement. As soon as the federal agents have completed their work, we will be in full operation.”

No allegations that the casino is at fault

According to unconfirmed local media reports, the investigation is related to possible money laundering at the casino.

The reports don’t suggest that the casino itself was responsible. Rather, the players may have been bringing in “dirty” cash and playing at the tables to “clean” the money.

Shortly before midnight on Tuesday, the Bike Tweeted that it would re-open in a few hours:

The Bicycle Hotel & Casino will be open and in full operation at 3am. pic.twitter.com/YU5R8GP3Oh

— Bicycle Hotel Casino (@BicycleCasino) April 5, 2017

Additionally, a notice on the casino website now says:

“The Bicycle Hotel and Casino is open and in full operation.

We are serving our customers and have resumed normal operations. Our priority is to provide a safe and fun environment for our guests.”

Echoes of an embarrassing past

The Bike has an embarrassing history, redolent of organized crime, which, even today, gives the casino a spicy atmosphere.

The casino was seized by the US government in 1990, after a jury found that $12 million of the $22 million construction cost came from Florida drug money.

In a case against one of the Bike’s founders, Sam Gilbert, the filing alleged that he and his partner came up with the idea of opening a card club specifically for the purpose of laundering money:

“The level of complicity in the money laundering plan varied among the LCP partners. The three original LCP partners – Dale Lyon, Julie Coyne, and David Pierson – were brought together in 1983 by Michael Gilbert’s father, Sam Gilbert. Sam, a wealthy Los Angeles businessman, was the first Gilbert to establish ties with the Kramer family when he befriended Benjamin Kramer’s father, Jack Kramer, in 1978. At that time, Jack Kramer and Sam Gilbert came up with the idea of building a legal card club for the purposes of laundering Benjamin Kramer’s dirty money.”

Government casino ownership was almost equally scandalous

Government ownership was also marred by scandal. So, in 1996 it sold its stake to British gaming company Ladbrokes, for $25 million.

A four-hour hearing by the US Senate permanent subcommittee on investigations included the statement by Committee Chairman William V. Roth Jr. (R-Del.) that the government’s period of ownership provided;

The Bicycle Casino Raided

“one of the most bizarre stories in [the committee’s] long history of uncovering waste, fraud, and mismanagement in government programs.”

Finally, under Ladbroke’s ownership the casino returned to respectability.

The Bike is an advocate of internet poker in California

Since becoming the first casino to broadcast live poker games over the internet in their popular Live at the Bike series, the Bicycle Casino has been an advocate for internet poker.

In 2014, it joined with a coalition of other card clubs and Indian tribes to lobby for legal regulated online poker in California.

The coalition also includes the Commerce Casino, Hawaiian Gardens Casino, Morongo Band of Mission Indians and the world’s biggest online poker operator PokerStars.

California legislation to license internet poker may be quiet at the moment, but should pick up pace later in the year.

The original plan for the coalition was to launch a combined operation. The idea was for casinos to use PokerStars software and branding to offer online poker in California.

Recent versions of legislative proposals have attempted to exclude PokerStars from the market for a period. Another proposition suggested PokerStars pay a huge sum of money before obtaining a license.

If that happens, presumably the coalition, including the Bicycle Casino, will have to rethink its plans.

The Bicycle Hotel & Casino (commonly, 'The Bike') is a pokercardroom in California.^[1]

Founded by George Hardie Sr. in 1984, located in Bell Gardens, California, The Bicycle Casino offers a selection of poker games and Asian games, with a wide range of limits. The casino features games including: Blackjack, Texas Hold 'Em, Seven Card Stud, Omaha hold 'em, Mexican Poker, Pai Gow Poker, Three Card Poker and Baccarat (card game).

Financing to build the original Bicycle Club casino was provided by Sam Gilbert, who allegedly used money partially obtained from laundering drug money.^[2] The casino is home to the Legends of Poker, a tournament series established in 1995 that now includes a stop on the World Poker Tour. Prior to the Legends, the casino's main tournament series was called the Diamond Jim Brady.^[3]

Seizure and indictment[edit]

In 1987, Sam Gilbert was the subject of a federal investigation into money laundering and racketeering charges. According to the investigation, a scheme to launder the money received from smuggling marijuana was put together to finance the construction of the Bicycle Casino in Bell Gardens, California.^[2][4] According to one criminal complaint,

The Bike Casino

'[Sam Gilbert] a wealthy Los Angeles businessman, was the first Gilbert to establish ties with the Kramer family when he befriended Benjamin Kramer's father, Jack Kramer, in 1978. At that time, Jack Kramer and Sam Gilbert came up with the idea of building a legal card club for the purposes of laundering Benjamin Kramer's dirty money. By 1983, Sam Gilbert was in contact with David Pierson, who was himself thinking of building a card club and was looking for legitimate investors. Pierson gave Sam Gilbert a prospectus, Sam liked what he saw, and Sam agreed to arrange the financing for the project in return for a sixty percent share of Pierson's ownership interest in the Club.'^[5]

Gilbert was indicted in Miami 4 days after his death.^[6] His son Michael also was indicted.

The U.S. Government seized the casino in April, 1990, after a jury found that $12 million of the $22 million used in its construction came from Florida drug smugglers.^[7] The club's profits were frozen and placed in a special U.S. Marshals account until the court held a civil hearing to determine which partners knew that the club was built with drug money.

George Hardie and The Park Place Associates ownership were exonerated in 1990, and they regained their 35% stake.^[8]

In July 1991 a Florida federal judge ruled that at least one of the partners, former Los Angeles Westside banker M. Dale Lyon, knew about the club's financing. Eight other partners in the LCP Associates, the partnership named for Lyon, Coyne and Pierson, agreed to forfeit portions of their interest in the club before the civil hearing began. LCP partners Julianne Coyne and former California Assemblyman David C. Pierson settled before the civil hearing. In 1991, they agreed to give up about half of their interest in LCP, which had a 65% stake in the casino.^[7]

By the time it sold its share of the casino in 1996, the US government had made tens of millions of dollars in profit from its share of the casino. As a partner in the club, the government also contributed to political campaigns to defeat the proposal to build a rival card club in Orange County.^[9]

2017 raid[edit]

Bike Casino Reopening

The casino was again raided by federal authorities citing money laundering as a part of an ongoing investigation into some players using the casino to exchange “dirty money” for chips, then turn cashing those in for “clean money.”^[10]

Live at the Bike[edit]

The Bicycle Hotel & Casino was the first brick and mortar casino to broadcast a live poker cash game over the Internet in a program known as Live at the Bike.^[11] It runs five nights a week, and features poker pros, celebrities and regular cash grinders. The show has always had card graphics and professional commentary making it one of the longest running poker shows ever.

Expansion[edit]

The Bicycle Hotel & Casino underwent a major hotel expansion in the Fall of 2015. The new seven-story, 117,907 square-foot complex now includes live entertainment, gaming, cocktail lounge, brewery, fitness center, sundeck with an outdoor bar, and a number of places to dine.^[12]

In popular media[edit]

The Bicycle Casino was featured in an episode of the TV series Numb3rs dealing with the murder of a successful card-counter, who coincidentally was also heavily into bicycle home repair.^[13]

See also[edit]

References[edit]

1. ^'The Bicycle Hotel & Casino'.
2. ^ ^abGLENN F. BUNTING and TINA GRIEGO - Miami Trial Gives Startling New Portrait of Sam Gilbert. Los Angeles Times, April 23, 1990
3. ^'Bicycle Casino Review - The Bike'.
4. ^GLENN F. BUNTING. Investors Face High-Stakes Battle for Casino Profits. Los Angeles Times, May 29, 1990
5. ^44 F3d 888 United States of America v. Michael Gilbert244 F.3d 888 (11th Cir. 2001)
6. ^WILLIAM OVEREND and WILLIAM NOTTINGHAM - Sports Figure Is Indicted--4 Days After Death. Los Angeles Times, November 26, 1987
7. ^ ^abGriego, Tina. Forfeiture Laws Give U.S. a Piece of a Casino : Narcotics: Government now owns about 30% of Bicycle Club in Bell Gardens, which was built to a large extent with smuggled drug money. Los Angeles Times, August 22, 1990
8. ^Griego, Tina. Court Clears Casino Manager and Partners : George G. Hardie and his financial partners will regain ownership rights to the profitable Bicycle Club in Bell Gardens. Los Angeles Times, October 04, 1990
9. ^U.S. to Sell Share of Bicycle Casino for $25 Million
10. ^KTLA.com: Bicycle Hotel and Casino in Bell Gardens Raided by Federal Authorities
11. ^LA Times: Building a $1-million poker game for 'Live at the Bike'
12. ^'Archived copy'. Archived from the original on 2015-02-24. Retrieved 2015-03-05.CS1 maint: archived copy as title (link)
13. ^'Double Down'. 13 January 2006 – via IMDb.

External links[edit]

Coordinates: 33°57′59″N118°09′58″W / 33.966312°N 118.166148°W