Commissioner Austin Cullen listens to introductions before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver on February 24, 2020. THE CANADIAN PRESS/Darryl Dyck

Commissioner Austin Cullen listens to introductions before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver on February 24, 2020. THE CANADIAN PRESS/Darryl Dyck

Ex-lottery VP testifies money laundering ‘politically charged,’ gets emotional

Robert Kroeker latest to speak at a public inquiry in B.C.’s probe into money laundering

A former executive with British Columbia’s lottery corporation became emotional Tuesday after two days of testimony at a public inquiry into money laundering.

Robert Kroeker took several moments to compose himself but his voice still cracked with emotion when he was asked to describe his experience as a focal point in B.C.’s probe into money laundering.

Kroeker, who was fired as vice-president of corporate compliance in 2019, spent much of his testimony explaining what the Crown corporation knew about illegal cash circulating at casinos and what was being done to prevent it.

“You are not a floor manager. You are not on the business side of casinos. You are not wining and dining high rollers,” said Marie Henein, Kroeker’s lawyer. “That’s not what you do. You’ve spent your life in compliance and trying to deal with money laundering and making casinos secure places in B.C.”

Kroeker’s voice cracked as he tried to describe the impact of allegations that the lottery corporation did not act on large amounts of illegal cash at casinos.

“It’s been devastating, not being able to respond, particularly when I was at the corporation, and especially for my team,” said the former RCMP officer. “They’re professionals and to see them continually attacked and maligned, it’s really unfair.”

Former gaming investigator Larry Vander Graaf, who is also a former Mountie, told the commission last November that the B.C. Lottery Corp. did not move quickly enough to protect the integrity of gaming from organized crime more than a decade ago.

Vander Graaf, the former executive director of the province’s gaming policy branch, testified that large amounts of suspicious cash started to appear at B.C. casinos in 2007 and by 2010, loan sharks were circulating nearby parking lots with bags of money believed to be from proceeds of crime.

Kroeker testified Tuesday he received a high-level briefing about suspicious cash activities at provincial casinos with possible links to organized crime on his first day on the job at the lottery corporation in 2015.

He said he reviewed a document that concluded lottery officials appeared unwilling to address police concerns about suspicious cash and its potential connections to organized crime. The document also included the lottery corporation’s concerns over the potential fallout if the information became public, he added.

“Certainly by this point BCLC knew there was a concern around the cash being brought into casinos being proceeds of crime,” B.C. government lawyer Jacqueline Hughes asked Kroeker.

“Yes, for sure,” said Kroeker.

On Monday, Kroeker testified that Attorney General David Eby appeared uninterested in the lottery corporation’s anti-money laundering efforts during a meeting in 2017 shortly after the New Democrats took power.

The Ministry of Attorney General said in a statement on Monday that Eby would not comment on evidence or proceedings while the commission is underway.

But in a statement on Tuesday, the ministry said “this government’s actions to tackle financial crime in B.C. speaks for itself.”

Kroeker testified Tuesday that the money laundering issue in B.C. had become “politically charged” and was used by the two main political parties to criticize each other.

The province appointed B.C. Supreme Court Justice Austin Cullen in 2019 to lead the public inquiry into money laundering after three reports outlined how hundreds of millions of dollars in illegal cash affected the province’s real estate, luxury vehicles and gaming sectors.

Dirk Meissner, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

money laundering

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Ron Sivorot, business director at Kennametal’s Langford site, the Greater Victoria facility that made a component being used on NASA’s Perseverance rover on Mars. (Jake Romphf, Black Press Media)
NASA’s Perseverance Mars rover using piece made at Kennametal’s Langford site

The Greater Victoria plant’s tooth blank is helping the rover’s drill collect rock cores

A provincially appointed consultant has recommended a change to the funding formula for the VicPD that will save Esquimalt a significant amount of money. (Black Press Media file photo)
Esquimalt to save a bundle on policing costs under new formula

Provincial consultant studied funding model, resource deployment for VicPD

A rockfall closed Finlayson Arm Road and West Shore Parkway on Friday (March 5) afternoon. (Twitter/BC Transportation)
UPDATED: Malahat reopens following rockfall

Section of Trans-Canada Highway was scheduled for intermittent closures today for rock scaling work

A Victoria resident was scammed out of $1,700 after a fraudster impersonated a police officer and convinced the victim to pay a non-existent fine in Bitcoin. (Unsplash)
Fraudster impersonates Victoria police officer, steals $1,700 in Bitcoin

Phone call showed up as VicPD’s non-emergency line

The Tsartlip First Nation was outraged after Green MLA Adam Olsen revealed on social media that the community had been experiencing a COVID-19 outbreak – a fact the First Nation had chosen to keep private to avoid racist backlash as experienced by the Cowichan Tribes when an outbreak was declared there in January. (Black Press Media file photo)
Tsartlip First Nation ‘outraged’ after Green MLA revealed COVID-19 outbreak

Chief shares concerns about racist backlash, MLA Adam Olsen apologizes

Provincial health officer Dr. Bonnie Henry updates B.C. on the COVID-19 situation. (B.C. government)
Dr. Bonnie Henry predicts a ‘post-pandemic world’ for B.C. this summer

‘Extending this second dose provides very high real-world protection to more people, sooner’

Malawian police guard AstraZeneca COVID-19 vaccines after the shipment arrived in Lilongwe, Malawi, Friday March 5, 2021. Canada is expecting its first shipments of AstraZeneca vaccine next week. (Associated Press/Thoko Chikondi)
B.C.’s daily COVID-19 cases climb to 634 Friday, four more deaths

Currently 255 people in hospital, 66 in intensive care

A crashed helicopter is seen near Mt. Gardner on Bowen Island on Friday March 5, 2021. Two people were taken to hospital in serious but stable condition after the crash. (Irene Paulus/contributed)
2 people in serious condition after helicopter goes down on Bowen Island

Unclear how many passengers aboard and unclear where the helicopter was going

Surrey Pretrial in Newton. (Photo: Tom Zytaruk)
B.C. transgender inmate to get human rights hearing after being held in mostly male jail

B.C. Human Rights Tribunal member Amber Prince on March 3 dismissed the pretrial’s application to have Makayla Sandve’s complaint dismissed

Supporters rally outside court as Pastor James Coates of GraceLife Church is in court to appeal bail conditions, after he was arrested for holding day services in violation of COVID-19 rules, in Edmonton, Alta., on Thursday March 4, 2021. THE CANADIAN PRESS/Jason Franson
‘Law remains valid:’ Pastor accused of violating health orders to remain in jail

The Justice Centre for Constitutional Freedoms is representing the pastor

The Netflix logo on an iPhone. B.C. delayed imposing sales tax on digital services and sweetened carbonated beverages as part of its response to COVID-19. Those taxes take effect April 1, 2021. THE CANADIAN PRESS/AP, Matt Rourke
B.C. applies 7% sales tax on streaming, vaping, sweet drinks April 1

Measures from 2020 budget were delayed due to COVID-19

A lawyer wears a face mask and gloves to curb the spread of COVID-19 while waiting to enter B.C. Supreme Court, in Vancouver, B.C., Friday, Aug. 28, 2020. British Columbia’s highest court has sided with the land owner in a dispute over public access to public land. THE CANADIAN PRESS/Darryl Dyck
B.C. high court finds in favour of large landowner in fight over access to pair of lakes

The Nicola Valley Fish and Game Club launched legal action after the cattle company blocked road and trail access

Prime Minister Justin Trudeau holds a press conference in Ottawa Friday, March 5, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau holds firm on premiers’ health-care funding demands, COVID-19 aid comes first

Premiers argue that the current amount doesn’t keep pace with yearly cost increases of about five per cent

Free Reformed Church is seen as people attend service, in Chilliwack, B.C., on Sunday, Feb. 21, 2021. Lawyers for the British Columbia government and the Justice Centre for Constitutional Freedoms are back in B.C. Supreme Court today, squaring off over the legality of COVID-19 rules that prohibit in-person religious services. THE CANADIAN PRESS/Darryl Dyck
B.C. top doctor has power to restrict access to a place during health hazard: lawyer

Under B.C.’s Public Health Act, Jacqueline Hughes says, Henry can restrict or prevent entry to a place

Most Read