SACRAMENTO — Following an investigation by the California Department of Justice – Bureau of Gambling Control and the Federal Bureau of Investigation, a federal grand jury returned a 12-count indictment November 17, 2016 against Nive Hagay, 31, of Los Angeles, charging him with operating an illegal gambling business, money laundering, and cocaine distribution.
According to court documents, between approximately July 2011 and November 2016, Hagay, also known as “Dino the Casino,” placed video slot machines in small businesses in Bakersfield, Ceres, Delano, Fresno, Lamont, Lodi, Modesto, and Sacramento. These machines allegedly generated an estimated $1.9 million in cash per year. Hagay is accused of laundering proceeds from the illegal gambling business through clothing companies in Los Angeles, as well as by making large purchases with the cash proceeds, such as a $202,000 cash transaction for a 2014 Audi R8. Hagay is also charged with distributing a substance testing positive for cocaine.
“California has very strict gambling regulations. California DOJ special agents in the Bureau of Gambling Control investigate illegal gambling schemes and have no problem joining forces with other law enforcement agencies,” said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona. “When agencies work together they are even more effective in solving cases, making arrests, and seeing it all through prosecution.”
If convicted, Hagay faces a maximum statutory penalty of five years in prison and a $250,000 fine for the gambling charge; 10 years in prison and a $250,000 fine or fine of twice the value of the property involved in the transaction for one of the money laundering charges; 20 years in prison and a $500,000 fine or a fine of twice the value of the property involved in the transaction for the remaining money laundering charges; and 20 years in prison and a $1 million fine for the cocaine distribution charge.