REVISED STIPULATED SETTLEMENT, DECISION, AND ORDER (DAVID LA)
David La essentially was “Kicked Out of California” (see our accompanying page for more of the story on David La here: David La).
Perhaps another way to put it is that David La lost his gambling license in the state of California as a result of the central role he played in the money-laundering scandal at Normandie Casino in Gardena, California. That scandal — with David La at the heart of it — eventually forced the family that owned the casino to be ordered to sell it.
David La was the casino’s Operating Manager at Normandie for years; he subsequently was named as its Chief Operating Officer. But embroiled in the middle of a money laundering scandal, La was terminated from Normandie. He filed a wrongful termination lawsuit against the casino. It was dismissed. La lost his gambling license in California and was unable to continue in that profession in the Golden State.
Normandie was temporarily shut down, was purchased by Larry Flynt, and was renamed and still operates as Larry Flynt’s Lucky Lady Casino.
David La was stripped of his ability to work in the gaming industry in California. La left California under a cloud of corruption.
Now, what exactly happened in the La-centered money laundering scandal in California? We’ll tell you exactly — straight from the recitation in the court document. (view full PDF file here: CALIFORNIA GAMBLING CONTROL COMMISSION STATE OF CALIFORNIA — Revised Stipulated Settlement, Decision, and Order (David La)) Even this excerpt is a bit lengthy, but it certainly lays out the story. I’m changing the name “Respondent” to “[David La”] throughout, after the first reference, just so you remember who’s being discussed. Here’s the quoted text from within that document:
8. Respondent [David La] admits to the truth of the following facts, and warrants, represents, and agrees that each is true, accurate, and complete:
- In September 2012, [David La] was hired with the title “Casino Manager.” Later, [David La]’s title was changed to “Chief Operating Officer.” [David La] reported directly to the Casino’s partners. [David La] and the Casino’s president negotiated an agreement for [David La]’s employment, which included provisions for him to earn a bonus based upon the Casino’s revenues. The bonus was calculated as a percentage of the amount by which the Casino’s revenues exceeded a certain level. [David La] and the president signed the agreement on September 18, 2012. Despite having his compensation based upon, and calculated in part as a percentage of, the Casino’s revenues, [David La] did not apply for or obtain a state gambling license as an owner or person having an interest in a card room’s gambling revenues. [David La]’s employment agreement was not provided to the Bureau for review or to the Commission for approval.
- In his capacity as Casino Manager, [David La] recommended that the Casino enter into arrangements with promoters or marketing groups to build up its business. [David La] sought out, and negotiated with, promoters and marketing groups. He negotiated written and verbal agreements that compensated promoters and marketing groups based upon percentages of the Casino’s revenues from certain controlled games or tables at which controlled games were played. None of the agreements was presented to the Bureau for review or to the Commission for approval. Despite having fees calculated as a percentage of the Casino’s revenues, none of the promoters or marketing groups applied for a state gambling license.
- [David La] brought in a gambler named “Sunny” who, along with a promoter, played high stakes baccarat in the Casino’s “Smoking Room.” Sunny often bet more than $10,000 on a given hand. Pursuant to an agreement that [David La] negotiated, the promoter was paid a percentage of the Casino’s revenues from the baccarat table at which Sunny played. [David La] observed and allowed the promoter and a Casino floor manager to purchase gaming chips using funds provided by Sunny and to cash in gaming chips for Sunny. According to information provided by third-party providers of proposition player services, during February and March 2013, Sunny won in excess of $2.5 million playing baccarat at the Casino. No cash transaction reports or suspicious activity reports pursuant to the federal Bank Secrecy Act were filed for Sunny. The Casino did not gather any information regarding Sunny’s identity or his transactions. [David La] became aware of the failure to gather information and prepare Bank Secrecy Act reports shortly after these events, but did not correct it. On January 14, 2014, [David La] told the Bureau’s investigators that Sunny was rumored to make money by growing marijuana.
- A walk-in closet in the Smoking Room was known as the “Cigar Closet” and was designated as an area restricted to Casino employees. Keys to the Cigar Closet, however, were held by the promoter who played controlled games with Sunny, and the promoter’s employees, none of whom was employed by the Casino. On March 28, 2013, Bureau agents examined the contents of a bag in the Cigar Closet; in addition to gaming chips and paperwork, that bag contained $50,000 in cash. [David La] learned that cash, gaming chips, and paperwork were stored in the Cigar Closet by the promoter on or shortly after March 28, 2013.
- On March 11, 2013, the Casino’s surveillance employees observed, among other things: a large amount of cash was brought to the Casino in a bag that was emptied on to a gambling table; the cash was separated into bundles of approximately $10,000 or less; and the cash was converted into gaming chips by several persons, including Casino employees. Sometime after March 11, 2013, [David La] viewed, or became knowledgeable of, surveillance video of the events. [David La] had recommended the hiring of the Casino floor staff employees who were involved in the chip conversion process. Despite the open and notorious nature of the event, [David La] advised the Casino’s Board of Directors that, aside from suspending one of the Casino employees involved in the event, no other discipline of the employees was warranted. No discipline beyond that advised by [David La] was imposed.
- [David La]’s employment with the Casino was terminated on or about September 23, 2013. [David La] has not worked in a licensed capacity at a California card room since then.
11. Upon the effective date of the Decision and Order issued by the Commission adopting this Stipulated Settlement (Effective Date), [David La]’s state key employee license shall be revoked. (Our bold face)
That’s David La, that’s who owns and runs Legends Poker Room. That’s who has infiltrated Texas and Houston’s poker scene. And the event excerpted above marked when he began to make a new plan — to set his sights on Texas. Specifically Houston. He shamefully dragged his unethical practices to the great state of Texas.
Different state, same story, is our opinion.
Why Texas? In a bit of the old school wild, wild west mentality, Texas sort of regulates poker but doesn’t really. Texas is certainly not California, and it sure ain’t Vegas when it comes to gaming or gambling oversight.
So David La made his way out here, to Houston, to begin plying his unethical trade practices when it comes to poker. And now he’s set up at Legends Poker Room. Is there any surprise there’s been so much trouble associated with the Legends Poker Room address at 9275 Richmond Ave., Suite 101, Houston, Texas?