1. Tribal Slot Technician Employee Theft Investigation Tribal Slot Technician Employee Theft Investigation Arizona Department of Gaming Investigative Team Members Special Agents Tim Overstake, Tom Baron and Henry Leyva; Investigations Special Agents Adam Bustos and Lou Espindola; Certification Machine Compliance Technicians Scott Miles and Shelly Jones-Newman; Compliance Auditor Warren Nichols; Audit Richard Slay, Intelligence

2. Tribal Slot Technician Employee Theft Investigation This investigation focuses on the theft activities of a single casino slot technician Slot Technician

3. Tribal Slot Technician Employee Theft Investigation The Focus Employee was a slot technician who discovered a way to manipulate the gaming machines in order to steal money from the casinos. Slot Technician  Opened Machine/Accessed Coins  Fed Coins Into Coin Slot to Build Credits  Cashed Out/Printed Voucher  Passes Voucher to Accomplice for Redemption

4. Tribal Slot Technician Employee Theft Investigation The Focus Employeewas not apprehended by conventional casino security, surveillance, audit or investigative processes. The Focus Employee was not apprehended by conventional casino security, surveillance, audit or investigative processes. He was detected simply by the careless actions of an accomplice. Slot Technician

5. Tribal Slot Technician Employee Theft Investigation During the course of this investigation, several failures were identified which combined to allow these thefts to occur. This presentation will focus on these failures. Slot Technician IT Dept.(DATA) RevenueAuditVPGaming SlotDirector Surveillance Supervisors CEO

6. Tribal Slot Technician Employee Theft Investigation The IT Department has a direct link to The Focus Employee. His activities are reported in systems such as DATA. His access activities and exception activities are among those recorded here. Slot Technician IT Dept.(DATA)

7. Tribal Slot Technician Employee Theft Investigation Revenue Audit has a direct link to the information stored in IT. Slot Technician IT Dept.(DATA) Revenue Audit

8. Tribal Slot Technician Employee Theft Investigation In this link our investigation discovered a failure. The information that may have implicated The Focus Employee is not being adequately gathered or interpreted. In this link our investigation discovered a failure. The information that may have implicated The Focus Employee is not being adequately gathered or interpreted. Slot Technician IT Dept.(DATA) Revenue Audit

9. Tribal Slot Technician Employee Theft Investigation The VP of Gaming and the Slot Director also have a direct link with IT. Slot Technician IT Dept.(DATA) Revenue Audit VP Gaming/ Slot Director

10. Tribal Slot Technician Employee Theft Investigation In this link our investigation discovered a failure. The information that may have implicated The Focus Employeeis not being adequately gathered or interpreted. In this link our investigation discovered a failure. The information that may have implicated The Focus Employee is not being adequately gathered or interpreted. Slot Technician IT Dept.(DATA) Revenue Audit VP Gaming/ Slot Director

11. Tribal Slot Technician Employee Theft Investigation Slot Technician IT Dept.(DATA) Revenue Audit VP Gaming/ Slot Director The Slot Director and VP/Gaming also have a direct link to the slot department supervisors. Supervisors

12. Tribal Slot Technician Employee Theft Investigation Slot Technician IT Dept.(DATA) Revenue Audit VP Gaming/ Slot Director There is a failure here as well. The supervisors are inadequately trained to recognize the mechanics of The Focus Employee’stheft activity. There is a failure here as well. The supervisors are inadequately trained to recognize the mechanics of The Focus Employee’s theft activity. Supervisors

13. Tribal Slot Technician Employee Theft Investigation Slot Technician IT Dept.(DATA) Revenue Audit VP Gaming/ Slot Director The Focus Employee The floor level supervisors have a direct link with The Focus Employee. Supervisors

14. Tribal Slot Technician Employee Theft Investigation Slot Technician IT Dept.(DATA) Revenue Audit VP Gaming/ Slot Director A failure identified here. Supervisors are described as ‘never around’. Sometimes physically present while The Focus Employee is manipulating machines, they fail to recognize the activity for what it is. Supervisors

15. Tribal Slot Technician Employee Theft Investigation Slot Technician IT Dept.(DATA) Revenue Audit VP Gaming/ Slot Director Surveillance has a direct link with The Focus Employee. Supervisors Surveillance

16. Tribal Slot Technician Employee Theft Investigation Slot Technician IT Dept.(DATA) Revenue Audit VP Gaming There is a failure here. Surveillance of slot department staff is insufficient. Supervisors Surveillance

17. Tribal Slot Technician Employee Theft Investigation Slot Technician IT Dept.(DATA) RevenueAudit VP Gaming/ Slot Director The CEO has direct links to the VP, the Director and Revenue Audit. Supervisors Surveillance CEO

18. Tribal Slot Technician Employee Theft Investigation Slot Technician IT Dept.(DATA) RevenueAudit VP Gaming/ Slot Director The CEO also has a link to IT. Supervisors Surveillance CEO

19. Tribal Slot Technician Employee Theft Investigation Slot Technician IT Dept.(DATA) RevenueAudit VP Gaming/ Slot Director Another failure. Information again is not being adequately gathered or interpreted either by the CEO himself or his administrative senior staff. Supervisors Surveillance CEO

20. Tribal Slot Technician Employee Theft Investigation CONCLUSION WHO? The Focus Employee Simple Slot Technician Little Formal Training Motivated Thief Inadequately Supervised Slot Technician

21. Tribal Slot Technician Employee Theft Investigation CONCLUSION HOW? The Focus Employee Opened Machine Door/ Accessed Coins Fed Hopper Coins Into Coin Accepter Built Up Credits Cashed Out Retained Voucher/ Took Home Used Accomplice to Redeem Stolen Vouchers Slot Technician

22. Tribal Slot Technician Employee Theft Investigation CONCLUSION WHY? The Focus Employee No Adequate Surveillance No Adequate Supervision Reports Not Adequate Generated/Studied Inadequate Training of Supervisory and Surveillance Staff Slot Technician

23. Tribal Slot Technician Employee Theft Investigation RECOMMENDATIONS Supervisors Enhanced Training Closer Supervision of Staff Supervisors

24. Tribal Slot Technician Employee Theft Investigation RECOMMENDATIONS Supervisors Enhanced Training Closer Surveillance of Floor Staff Revised Radio Procedures Equipment Maintenance Surveillance

25. Tribal Slot Technician Employee Theft Investigation RECOMMENDATIONS Revenue Audit Enhanced Training Closer Supervision of Staff Prompt, Accurate Reporting Efficient Completion of Daily Activities Revenue Audit

26. Tribal Slot Technician Employee Theft Investigation RECOMMENDATIONS VP Gaming Enhanced Training Ensure Sufficient Training of Personnel Adequate Reporting Clear, Updated Policies and Procedures Accountability of Subordinates VP Gaming/ Slot Director

27. Tribal Slot Technician Employee Theft Investigation RECOMMENDATIONS Chief Executive Officer Ensure Sufficient Training of Personnel Closer Supervision of Staff Accountability of Staff Adequate Reporting Policies and Procedures CEO

28. Questions? Prepared/Presented by Special Agent T. J. Overstake Tribal Slot Technician Employee Theft Investigation