1. General Manager/ Key Employee Investigations Presented by: Dave VanBoxtaele Supervisor Investigations and Inspections Arizona Department of Gaming

2. PRE-EMPLOYMENT vs POST-EMPLOYMENT  PRESENTATION WILL FOCUS ON - INVESTIGATIONS INTO THE ACTIVITIES OF KEY EMPLOYEES - DEFINITIONS - ORGANIZATIONAL STRUCTURES - RECOGNITION OF OPERATIONAL AND REGULATORY CONFLICTS - EXAMPLES OF VIOLATIONS - INVESTIGATIVE TOOLS &TECHNIQUES - INTERVIEW TECHNIQUES - REPORT FORMATING

3. I. Definitions  KEY EMPLOYEE  “Means a gaming employee who performs one or more of the following functions:  Count room supervisor  Chief of Security  Custodian of gaming supplies or cash  Floor manager  Custodian of gaming devices  Persons with access to cash and accounting records  Any other person whose total $ compensation is in excess of $50,000 per year

4.  PRIMARY MANAGEMENT OFFICIAL  Means:  The person having management responsibilities under a Management Contract  Any person who has authority to hire and fire employees  Any person to set up working policy for a Gaming Operation  The Chief Financial Officer or other person who has financial management responsibility for a Gaming Operation.

5.  GAMING FACILITY OPERATOR  Means:  The Tribe, an enterprise owned by the Tribe or  Other entity designated by the Tribe having full authority and responsibility for the on site operation, management, and security of the gaming facility.

6. II. ORGANIZATIONAL STRUCTURE REGULATORY VS OPERATIONAL  COMPACT – - Provides the framework for regulatory and gaming facility operations

7. GAMING FACILITY REQUIREMENTS  The Tribe shall require the GFO to adopt reasonable procedures designed to provide for the following :  The physical safety of its employees  The physical safety of patrons in the Gaming Facility  The physical safeguarding of assets transported to and from the Gaming Facility and cashier’s cage  The protection of patrons and gaming operation’s property from illegal activity

8.  TRIBAL GAMING OFFICE  Responsible for on site regulation  Enforcement of Tribal Gaming Code  Enforcement of Compact requirements  Investigating violations  Tribally licensing vendors and employees

9.  ARIZONA DEPARTMENT OF GAMING Has statutory authority to monitor the Tribes Gaming Operation Insure the operation is conducted in compliance with the provisions of the compact and its appendices Such monitoring shall include the authority to investigate suspected violations of the Compact and its appendices Investigations are designed to identify and remove employees involved in illegal activities or conduct that violates the conditions set forth in the gaming compact

10.  NATIONAL INDIAN GAMING COMMISSION Has the authority to regulate Class II games on Tribal lands Issues minimum internal control standards governing Class III gaming

11. PARTNERSHIPS ADOG NIGC TGO = STRONG REGULATION

12.  TRIBAL COUNCIL – - Oversees gaming operation or appoints a gaming board or management company - Hires a PMO or gaming board who is responsible for the profitability of gaming operation - Appoints a Tribal Gaming Commission to oversee TGO regulatory operations

13. GOALS :  Gaming Facility Operator – - To make a profit for the Tribe  Tribal Gaming Office – - To provide on-site regulation

14. BOTH OPERATIONAL & REGULATORY ROADS LEAD BACK TO TRIBAL COUNCIL TRIBAL COUNCIL GAMING FACILITY OPERATOR GENERAL MANAGER CASINO OPERATIONS TRIBAL GAMING COMMISSION REGULATION TRIBAL GAMING OFFICE CREATES OVERLAPPING INFLUENCE

15. III. POTENTIAL CONFLICTS The TGO and GFO often come into conflict when regulation negatively impacts casino operations in terms of additional time and money spent caused by: - Having to wait for vendor certification - Having to wait for employee certification - Reluctance to report violations - Reluctance to ban good customers that can affect the bottom line - Any other number of operational vs regulatory conflicts

16. POSSIBLE SCENARIOS A regular customer, spending $5,000 per week is involved in a major fight in the Casino – A Tribal member employee, related to a member of the Tribal Council, is involved in an on duty theft – The GM has a major event planned, and forgot to add additional security staffing – A GM advises a Tribal Council on a “lucrative” outside business investment. The investment goes bad, he promises to get their money back – Tribal member starting a Casino related business awarded a no bid contract to provide Casino with supplies - Large amount of money stolen from a slot cheating scam - GM trying to save the Tribe money using uncertified vendors -

17. EXTERNAL INFLUENCES DON’T ALWAYS HAVE CONTROL OVER OUTSIDE INFLUENCES TGO’S MUST REMAIN INDEPENDENT - are the cornerstone for regulation - must be allowed to do their job NEED TO HOLD KEY EMPLOYEE’S AND GM’S ACCOUNTABLE

18. IV. EXAMPLES OF VIOLATIONS Using uncertified vendors Failure to follow certification requirements for employees Splitting vendor invoices Abuse of expense accounts Manipulation of records Failure to report compact or unusual occurrence violations to TGO Failure to ban persons involved in illegal activity Failure to carry out contractual duties Failure to develop / follow adequate internal control procedures Denying TGO access to records or other sensitive areas of facility Violation of exclusivity agreements Making Casino donations to charitable organizations for personal benefit

19. V. INVESTIGATIVE TOOLS Obtain job descriptions for employee - Helps to establish exact responsibilities - Often requires individual to ensure gaming operation is in complete compliance with Tribal / State compacts Obtain employment contract - Will outline if GM is entitled to travel reimbursements - Outlines severance clauses - Outlines insurance and other payroll requirements - Describes confidentiality agreements - Describes exclusivity agreements

20. Memorandums, E-Mails, other correspondence to employee - Helpful when determining employee had knowledge of a compact violation or unusual occurrence and didn’t report it. - Department heads often communicate in this fashion Credit Card records - Often vendor purchases can be made by company credit card circumventing normal invoice requirements Vendor / Billing Invoices - Review for split invoices, order dates, delivery dates Travel expense reimbursements Forensic examination of computer records - will often be personal communications - goes to show where time and effort is spent - may indicate sharing of proprietary information belonging to the Tribe Surveillance Tape of employee misconduct - Not always available after 7 day retention period

21. TGO Investigative reports - Always a good starting point - TGO violation notices or other correspondence with GFO Tribal Gaming Codes - Will outline duties, requirements of GM - Provides description of circumstances that would preclude Tribal licensing > Failing to comply with or make provisions for compliance with Compact > Denial of access > etc. Gaming Facility Operator Manager meeting minutes - Often will document instructions by GM to his staff Tribal Council meeting minutes - Not always available, but good tool if provided Surveillance records / incident reports

22. Human resources employment file - Excellent tool - Contains signed acknowledgements on sharing information - Work place discrimination agreements - Confidentiality agreements - Employee handbooks outlining job requirements Cell Phone records

23. VI. INTERVIEW TECHNIQUES PREPARE for your interview - all too often we “shoot from the hip” - review all reports, documents, compact requirements Design open ended questions Tape record all interviews - this protects you - provides an accurate record - guarantees the accuracy of any response

24. Interview your suspect LAST - Conduct all other witness interviews first * enhances your own knowledge of the case * helps to prepare questions for your suspect - Helps to eliminate and or strengthen allegations - Eliminates the need to go back and conduct follow-up interviews.  AND IF NOTHING ELSE - it will make your suspect “SWEAT” for awhile and begin to wonder what you know…..

25. VII. FINAL REPORT Executive Summary - Bottom line concept - Allows the reader to digest entire report in one or two pages Use of index - separates interviews, support documentation for easy access Written Narrative - Outlines nature of report, allegations, interviews, etc Summary - Ties in all allegations - Determines whether sustained or unfounded - Match appropriate section of compact to sustained violations - Determine any criminal violations that apply Conclusion – Your final recommendations

26. QUESTIONS ??????