Caesars Casino Must Return $1.5M Wagered By Ponzi Schemer

Law360, New York (February 4, 2014, 6:45 PM EST) -- A Caesars Entertainment Corp. casino must surrender $1.48 million to a bankruptcy trustee representing a now-defunct mortgage company, after a Nevada federal jury ruled Monday that the gambling money collected by the Rio Casino was raised through a $32 million Ponzi scheme. 

The jury found that the Rio Casino, owned by Caesars unit Rio Properties Inc., had received property of National Consumer Mortgage Inc., a residential mortgage company used as a front by the company’s president Salvatore Favata when he used cashier's checks to gamble....
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