The federal court on Friday granted the U.S. government’s motion to dismiss the criminal case against former Tinian Dynasty casino manager Tim Blyth, who agreed to cooperate in federal authorities’ investigation on Tinian Dynasty’s owner.
Manglona dismissed the case against Blyth with prejudice. That means the U.S. government can no longer re-file the matter.
Assistant U.S. attorney Russell H. Lorfing said the decision to drop the case is primarily based on the parties’ deferred prosecution agreement.
Lorfing said attorney Mark Hanson, counsel for Blyth, is aware of this and does not oppose it.
Last July, the parties informed the court that the U.S. government needs more time to assess the extent of Blyth’s cooperation in the investigation.
The parties disclosed that Blyth is continuing to cooperate with the U.S. government pursuant to the terms of their deferred prosecution agreement.
Manglona granted the parties’ request.
Blyth and former Tinian Dynasty Hotel and Casino VIP services manager George Que were among those charged with engaging in a conspiracy to allow gamblers to conduct transactions involving more than $10,000 without filing the required paperwork with the U.S. government.
In February 2014, Blyth entered a deferred prosecution agreement with the U.S. government in exchange for the dismissal of the charges against him. The court approved the agreement.
In June 2014, Que also entered the same agreement with the U.S. government.
Last July 23, Manglona dismissed the indictment against the owner of Tinian Dynasty Hotel & Casino.
Manglona dismissed without prejudice the criminal charges against Hong Kong Entertainment (Overseas) Investments Ltd. based on the U.S. government’s request.
Dismissed without prejudice means the prosecution can re-file the charges in the future.
The new owners of Hong Kong Entertainment and the U.S. government have agreed not to prosecute the criminal case against HKE in exchange for HKE’s forfeiture of $3.03 million.
Under the deal, the U.S. government—in its sole discretion—can rescind the agreement and initiate criminal proceedings should the U.S. government determine that Tinian Dynasty has failed to comply with any provision of the agreement.
Pursuant to the agreement, HKE acknowledges the acts alleged against it, pledges to cooperate with, and to regularly report to, the U.S. government regarding anti-money laundering and Bank Secrecy Act issues.
IRS Criminal Investigation conducted the investigation.
The U.S. government filed in November last year 158 criminal charges against HKE. The charges are one count of conspiracy to cause a financial institution to fail to file a currency transaction report or CTR, 155 counts of failure to file a CTR, one count of failure to file a suspicious activity report, and one count of failure to maintain an effective anti-money laundering program. The indictment has also a notice of forfeiture.