I-Team: Crosby answers casino questions

CHICOPEE, Mass. (WWLP) - 22News I-Team reporter Ryan Walsh talks with Massachusetts Gaming Commission Chair Stephen Crosby.

Transcript Below:

When is the absolute deadline for a developer to be locked in with a town or city?

 

“There is no date deadline, we haven’t set any date deadline.  They have to do the host community agreement, the referendum 60-90 days after they get the go ahead from us.  I would expect a month or two after that we would at some point put out a deadline, but we don’t want to give an artificial deadline.  We don’t want to force people to rush if they are trying to negotiate a better deal or try to make it a better deal or deal with a transportation problem or some other type of community mitigation problem.  So as a practical matter, it’s going to be the end of the summer, early fall, but we haven’t set a specific date.”

 

In Springfield, if they choose to have a host agreement and move forward with just one company – say in June, which they have been talking about.  Would that other company still be able to say we’ve invested in Western Mass, we’ve paid our $400,000, but we’re going to move to another city another site, would that be possible?

 

“We have not dealt with that specific case and that is something the commission would have to decide on formally.  It may well be possible in theory.  Whether, as a practical matter, they could get together that quickly is another matter.  Theoretically someone could be having a backup position right now, could have someone looking at other sites.  Chicopee’s been talking about they’d like to get in the game.  It’s possible.”

 

Does the developer have to inform of those intentions?

 

“There’s no obligation to tell us, as a practical matter they have to talk to the city because they have a whole host of regulations they have to follow.  Zoning regulations they have to follow, traffic tests they have to do.  It would be pretty hard to do that on the QT, but we don’t require them to tell us, but we’ll know just as a practical matter.”

 

Can someone have a financial interest in two casinos bidding for the Western Massachusetts license?

 

“No.”

 

Talking about the pending lawsuit between the group of Palmer investors and Peter Picknelly.  Is it still a hands-off approach to let them settle at this point, or at what point does the MGC potentially have to step in?

 

“The lawsuit has nothing to do with us.  That takes its own direction.  Any issues that get raised in a lawsuit like that whether it’s with this team of bidders or any other team of bidders, lots of companies have lawsuits going on.  We will of course look into those.” 

 

One of the buzz words that’s been going around is hidden investors.  How do you track them down and how do you do your research on them?

 

“I’m not a forensic accountant or an FBI agent so I can’t give you the details.  They have to tell us every place that their money is coming from.  Each person who is putting in money we have to know who their business associates are and where their money is coming from.  When you start to check, that’s what FBI agents and FBI forensic accounts do is track down the source of these monies.”

 

Is that who will be doing the investigations?

 

“Yes, we have a team together of both consultants and people on our staff who are State Police, former FBI agents.  We work with the FBI and with the Secret Service, all the other law enforcement agencies in the state.  We have investigation powers that are second to none.”

 

So MGM with its connections overseas that would be looked into, Peter Picknelly with his Opel Real estate ventures and his gun company would be investigated?  All of the above?

 

“Those are the kinds of things for every investor they would be looked at?  We have a team in Asia that will be looking overseas, Some of our companies, some of our bidders, not just MGM,  do business overseas and we will be checking into those business relationships as well.”

 

How far along are you in that?  

 

“It depends, but on average it takes about 6 months.  It’s a complicated process.  The first step we have to do is go through hundreds of pages to make sure that everything has been filled out right, but we are underway in almost every case.  The investigations are actually underway now for almost all of these guys.”

 

How deep are these investigators going to be digging? 

 

“Very deep.  We went over the background check forms, it’s pretty much a standard form for individuals and a second form for businesses that are used throughout the industry. It is very deep.  It goes into what kind of scars and birthmarks do you have on your body?  That’s one way you can tell a person is who they say they are.  That level of detail, all of your financial records, who you do business with, what your assets are, where your assets are invested, on and on. But we go very, very deep.  Enough to assure to a certainty that the persons doing business in Massachusetts are above reproach. “A” personally