BIT Mining CEO, Zhengming Pan, who previously was in charge of online casino firm 500.com, has been indicted by the US Department of Justice, over lucrative bribery allegations.
Central to the charges are allegations of Pan committing four violations of the Foreign Corrupt Practices Act (FCPA).
Meanwhile, BIT Mining will pay a total of $14m as a result of the charges, entering itself into a deferred prosecution agreement.
However, a federal grand jury in the District of New Jersey returned an indictment against Pan, who has been charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
Principal Deputy Assistant Attorney General Nicole M Argentieri, Head of the Justice Department’s Criminal Division, stated: “BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2m in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan.
“Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”
The court documents claimed that between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its then-CEO Pan, employees and agents agreed to pay approximately $1.9m in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials.
The motive was allegedly to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities and entertainment venues) in Japan.
“Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan,” said US Attorney Philip R Sellinger for the District of New Jersey.
“The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10m penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”
Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division, said: “Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct.
“This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”
BetMGM has hired Casey Hurbis as its new Chief Marketing Officer, while its parent company, MGM Resorts International, has promoted Ari Kastrati to the position of Chief Content, Hospitality and Development Officer.
Reporting to BetMGM’s Chief Revenue Officer, Matt Prevost, Hurbis brings 30 years of consumer marketing experience to the operator, including knowledge in consumer engagement, digital advertising, partnership development and experiential marketing.
“Sports betting is one of the most competitive and rapidly evolving industries in the marketing world, and I’m honoured to join BetMGM at such an exciting time in its growth,” commented Hurbis.
“BetMGM is a brand with incredible momentum, backed by a team that is redefining how we engage and entertain audiences. I look forward to pushing the boundaries of creativity and innovation to not only attract new audiences but enhance the experience for our loyal players to even greater heights.”
Before joining BetMGM, Hurbis was Chief Marketing Officer at retail mortgage lender Rocket Mortgage. He has also spent 24 years in automotive marketing with roles in advertising and communications for FIAT and Alfa Romeo.
At Rocket Mortgage, Hurbis helped the company achieve consecutive number one rankings on USA Today’s Ad Meter for Super Bowl commercials, in addition to launching the Rocket Mortgage Classic, the most-awarded event on the PGA Tour.
He has also previously collaborated with BetMGM’s creative agency of record, Highdive, on three top-ranked Super Bowl campaigns while at Rocket Mortgage.
Prevost added: “Building BetMGM from the ground up into one of the most recognizable brands in the sports betting and igaming sphere has been an incredible accomplishment made possible by the tireless efforts of our amazing team. Bringing a visionary leader like Casey Hurbis on board adds another impactful advantage for our brand.”
As previously mentioned, MGM Resorts has promoted Ari Kastrati to the position of Chief Content, Hospitality and Development Officer. He was previously Chief Hospitality Officer.
Reporting to MGM Resorts’ CEO & President, Bill Hornbuckle, Kastrati will be in charge of the company’s global design and development efforts and sports and entertainment partnerships.
In addition, he will continue to lead MGM Resorts’ hospitality strategy, including the development of food and beverage and nightlife concepts, as well as lifestyle, retail, leasing, and arts divisions. He will also serve on the company’s Executive Committee.
“MGM Resorts is continuing to extend into some of the world’s most exciting luxury destinations, and I am thrilled to play a bigger role in our growth,” stated Kastrati.
“It’s an honour to not just grow within the company but serve in an expanded leadership role, and I look forward to helping the company redefine the gaming entertainment experience for our guests, in Las Vegas and globally.”
Kastrati has been with MGM Resorts since 2010, but has previously worked with several premium hospitality companies and has over 25 years of industry experience.
Hornbuckle added: “Ari has long played an integral role in making MGM Resorts the world’s premier gaming entertainment company. He has a keen sense of what consumers want, and what is cutting-edge in global luxury and entertainment.
“His expertise will be essential as our company continues to develop marquee experiences in Las Vegas and beyond and create unparalleled resorts with world-class design in some of the world’s pre-eminent gaming markets.”
