Colma, CA Casino Owner Arrested on Tax Evasion Charges The owner of the Lucky Chances Casino in Colma, California, Renato “Rene” Medina, 61, was arrested on Monday on 10 felony counts.
According to federal authorities, Medina evaded around $1 million in taxes from 1999 to 2001. Medina deducted around $2.6 million in fake business expenses from his income, including almost 250,000 that he spent to remodel his Atherton home, and other money he spent on a Mercedes Benz.
Medina’s niece and nephew, Phyllis Reyes Cuison, 47, of South San Francisco, and Rawlin Cundangan Reyes, 39, of Fremont, were also indicted, for helping Medina to divert money from Lucky Chances Casino through other businesses in order to avoid paying proper taxes.
Medina, who is free on $6 million bond, denied the allegations, noting that he paid $12.9 million in income taxes from 1999 to 2001.
Lucky Chances Casino owner Renato "Rene" Medina looms large over Colma and areas of California politics. "These allegations are not true, and we will vigorously defend against these unwarranted charges," said Medina in a statement on Tuesday. He added that the Lucky Chances Casino is "an ethical and honest business providing patrons with the best of services and contributing to the improvement of the quality of life" in Colma.
The federal government has estimated that Medina paid $973,841 less than he should have from 1999 to 2001- around the same amount that he has donated to political campaigns since early 2000.
Most of the contributions were related to 2004’s Proposition 68, which asked voters whether California should expand gambling at non- Indian casinos.
Medina also gave a great deal of money to California politicians’ re- election campaigns, such as a $15,000 contribution to Los Angeles City Attorney Rocky Delgadillo, and $2,500 to Oakland Mayor Jerry Brown, Delgadillo’s rival.
"We obviously don't condone the type of activity that's been alleged here. ... If it's true, then we will be returning the contributions," said Delgadillo campaign spokesman Roger Salazar.
"We're going to review the whole thing, and if appropriate, we'll take action," Brown spokesman Ace Smith said.
Medina’s current political campaign donations revolve around an effort to have a $200 limit on bets placed at Lucky Chances Casino removed. The $200 limit was set by the local government in Colma in 1992 in an effort to fight problem gambling. Although the city amended its law in 1998, it did not do so through the proper channels, and the state Division of Gambling Control ordered Lucky Chances Casino to stop offering no- limit betting in 2005.
Although Lucky Chances honored the order, according to Medina’s lobbyist and personal attorney Michael Franchetti, Medina is currently involved in attempting to remove the betting limit through a special election. The Lucky Chances Casino owner believes that he will be able to convince the Gambling Control Commission that the expansion moratorium applies to new casino expansion and not to existing casino sites.
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