An investor is seriously looking into taking over the Tinian Dynasty Hotel & Casino, which hotel remains closed since March and its casino doors shuttered since September 2015.
According to Tinian Mayor Joey San Nicolas, Chinese Strategic Holdings Ltd., headed by investor Tim Chen, is already in the process of finalizing negotiations for taking over TDHC.
“The [current TDHC] owners, Hong Kong Entertainment, which is owned by Mega Stars, I don’t think that they have any plans in the immediate future to open. However, one of their investors, Chinese Strategic, headed by Mr. Tim Chen, they are serious at basically taking over ownership of Tinian Dynasty Hotel and Casino,” San Nicolas said.
“They are now in the process of continuing efforts to have them investigated and they are working with Tinian Entertainment Corp.,” he added.
Tinian Entertainment Corp. is a subsidiary of Chinese Strategic, which is closely associated with Chen.
Chinese Strategic, a Hong Kong stock exchange trading company, is one of the initial investors with Mega Stars for the purchase of HKE, which currently owns Tinian Dynasty.
As Mega Stars previously borrowed money from Chen and Chinese Strategic, San Nicolas said the latter parties want to convert debt to ownership.
“What they want to do is they want to convert the debt to ownership and basically take over the ownership of Hong Kong Entertainment or if that’s not feasible, then create a new company that would basically take over,” San Nicolas said.
“They want to make a front seat now,” he added, “They have been investors, now they want to take over.”
As a principal of Chinese Strategic and Tinian Entertainment Corp., Chen needs to be investigated and vetted by the Tinian Casino Gaming Control Commission.
According to San Nicolas, Chen already visited Tinian and met with TCGCC and was introduced to Gov. Ralph DLG Torres as well.
“There is a $50,000 that is required and will be paid soon according to Mr. Chen, so that the commission can do their investigation,” San Nicolas said.
The commission will have their investigators go to Hong Kong and 45 days after is required to have a hearing and come up with a decision as to whether he is financial suitable.
San Nicolas added that the investor also disclosed how he intends to address the outstanding liabilities of Tinian Dynasty, which include the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) fines, and moneys owed to the employees and vendors.
“Remember we still have FinCEN and labor matters,” San Nicolas said, “Those are the things that they have to address so that’s part of their due diligence.”
In June 2015, FinCEN assessed a civil penalty in the amount of $75 million against the owner of Tinian Dynasty for “willful and egregious violations” of the Bank Secrecy Act and was determined to have failed to develop and implement an anti-money laundering program to ensure ongoing compliance with the Act.