Office of the Attorney General
SACRAMENTO - Attorney General Edmund G. Brown Jr. today announced the arrests of five members of a suspected loan-sharking syndicate, headed by a reputed Chinese mobster, that trapped casino gamblers in a "never-ending loop of debt and fear" by loaning them hundreds of thousands of dollars at exorbitant interest rates.
Working inside tribal casinos in the Sacramento area - including Red Hawk and Thunder Valley -- over the last 18 months, the suspects often preyed on Asian gamblers. Once the gamblers accepted loans, the amount they owed began to skyrocket. Some were charged 5 percent interest a week. Because of high interest rates and other charges, one gambler's $100,000 loan mushroomed to $400,000 in five months.
"Loan shark enterprises like this one terrorize people through spiraling financial obligations and threats of violence," Brown said. "Victims are trapped in a never-ending loop of debt and fear."
Read the entire news release here.