Wealthy Chinese businessman, Linong Ma has levelled a lawsuit against two junket operators and SkyCity Adelaide. The legal action follows allegations that the junketers, Xiongming Xie and his associate, Zhuangqian Fang, defrauded Ma to the amount of A$4.84 million and that Xie has close ties to organized crime.
For SkyCity Adelaide’s part, the operation is accused of breach of trust and negligence.
Junket gambling in a nutshell
Junkets were invented in the 1950s and provide casinos with high profile clients that they effectively scout in exchange for a monthly commission, provided the clients produce an expected level of profit for the house. Once these punters return to where they came from, the junket and the casino will settle any outstanding balances.
Chinese Junket clients pay money to junkets via bank transfer before they embark on their trips and these amounts are converted into “rolling chips,” non-negotiable tender accepted at VIP rooms of specific casinos.
This practice subverts the Chinese government’s disdain at large sums of money being taken out of the country and allows high rollers to sail past any potential bureaucratic obstacles.
The set-up
The events leading up to the filing of the lawsuit paint a sordid tale of deception.
Ma arrived at SkyCity Adelaide on May 21st, 2019 as part of a junket put together by Zhuangqian Fang. Ma later began to strongly suspect that Xie was actually behind the operation and using Fang’s junket license to obscure his role.
Ma was accompanied by a Ms. Goh on his junket, an individual identified by the lawsuit as being “employed or engaged by Mr. Xie as an escort or hostess for high-rollers.” A Ms. Zhang, also apparently employed by Xie, was also present, playing Baccarat
Ma withdrew $400,000 in chips with his sights set on baccarat and unfortunately promptly lost $370,000.
The next day saw Ma emerge with renewed energy, evident in his withdrawal of a further $600,000. The night’s rest seemed to have changed his fortunes and he found himself on a red-hot winning streak. He eventually walked away having accumulated $5,048,500 over and above his stake.
Unfortunately for Ma, this is when his luck ran out.
The con
Ma made the practical decision to cash out his chips, but his assigned companion, Ms. Goh, advised him that this could only be done the following Monday. A heated exchange with his escorts ensued, with the lawsuit describing the escorts as “behaving in a furtive and suspicious manner.”
Ma had to travel to Hong Kong for his son’s graduation and had the chips secured in a SkyCity safety deposit box that came with the promise that he had exclusive access to its contents.
Ma’s plans to return in June and collect his chips were dashed when it became evident that the bulk of his winnings had been transferred by SkyCity on May 29th.
The lawsuit alleges that the beneficiary of the transaction was Xiongming Xie and that no effort has been made to return Mr. Ma’s winnings to him.
Unmasking Xiongming Xie
Xie’s shadowy presence in this incident has dragged this reclusive individual into the light and several details have emerged.
The lawsuit claims that Xie has “substantial gambling debts” and that he is a known associate of junket operator Tom “Mr. Chinatown” Zhou, a criminal wanted by INTERPOL. The lawsuit further alleges that Xie is a “dangerous and violent criminal” who has been barred from all Australian casinos.
A 2016, assassination attempt at his Sydney home left Xie with multiple stab wounds that he managed to survive.
Three years later in 2019, he found himself being accused of being at the other end of the blade when he faced criminal charges in Australia after allegedly menacing a man with a knife while demanding a $10 million property transfer.
The lawsuit also claims that he has “links with Asian Triad criminal gangs.”
