Caesars lawyers deny privacy violation in World Cup betting sting

Lawyers for Caesars Entertainment Corp. deny a defense assertion that the company acted as a government agent during the investigation of a multimillion-dollar World Cup betting scheme.

“Defendants’ theory is a complete and utter fabrication,” the company’s lawyers wrote in a recent court document.

The attorneys made the argument as part of a motion to quash a subpoena served on the company in connection with the criminal case. U.S. Magistrate Judge Peggy Leen heard arguments on the request Thursday before telling lawyers on both sides of the issue to meet and work out an agreement.

After the meeting, defense attorney David Chesnoff told the Review-Journal, “We were able to work out an understanding, and we believe we’re going to get the documents that will help us find out the truth about what occurred.”

At the earlier hearing, Chicago lawyer Monica Pinciak said Caesars has nothing to hide. She said the company fought the subpoena, which requested a variety of documents and other information, because it was overly broad. She accused defense lawyers of fishing for “unknown evidence” to use in the criminal case and in a threatened civil action against Caesars.

Defense lawyers have argued that FBI and state gaming agents illegally obtained evidence and spied on the suspects they later charged in the betting scheme.

According to court documents in the case, the agents shut off Internet service at luxury Caesars Palace villas occupied by the defendants in July and, with the resort’s help, posed as technicians to enter the rooms to determine the extent of what they believed was an illegal gambling operation.

Agents later used what they saw in the rooms to obtain search warrants to raid the villas before arresting the defendants. Defense lawyers have argued that the searches were unconstitutional.

Eight defendants were indicted in July in the scheme. Each faces one count of transmission of illegal wagering information and one count of operating an illegal gambling business, both felonies.

In late September, Leen issued a subpoena to Caesars at the request of lawyers representing two of the defendants — Malaysian businessmen Wei Seng “Paul” Phua, 50, and his son Darren Phua, 23. Both have been released on bail posted by Phil Ivey and another well-known poker professional.

Chesnoff represents Paul Phua.

Authorities believe Paul Phua and co-defendant Seng Chen “Richard” Yong, both well-known at poker tables in Las Vegas and Macau, were ringleaders of a betting ring that accepted millions of dollars in wagers on the World Cup soccer tournament in Brazil.

The indictment alleges the defendants ran the illegal operation from June 6 until their July 13 arrests.

In a criminal complaint, the FBI alleged that the elder Phua was “known by law enforcement to be a high-ranking member of the 14K Triad,” one of the world’s largest criminal syndicates.

According to the recent court document prepared by Caesars lawyers, the company contacted the Nevada Gaming Control Board when it became concerned that the defendants were engaged in illegal activity at Caesars Palace, and the FBI later became involved.

Caesars responded to law enforcement requests for information by providing corporate records, according to the court document.

But, the company’s lawyers wrote, “when law enforcement agents asked Caesars to participate in conduct that implicated defendants’ privacy, Caesars expressly declined.”

Contact reporter Carri Geer Thevenot at cgeer@reviewjournal.com or 702-384-8710. Find her on Twitter: @CarriGeer.