|Men face felonies for allegedly fleecing casino|
|Written by Erika Schmidt Russell|
|Thursday, November 01, 2012 7:19 PM|
Two men, both former Hollywood Casino employees, are facing felony charges of corrupt business influence, theft of at least $100,000, and money laundering over $50,000.
Indiana State Police officer Tim Denby filed an affidavit of probable cause against the men, Christopher R. Krabbe, 42, of West Harrison, and Michael Burnett, 39, of Fairfield, Ohio, in Dearborn Superior Court No. 1 Tuesday, Oct. 30.
According to the affidavit, Hollywood/Penn Gaming officials contacted the ISP in May 2012 with a complaint of theft against Burnett and Krabbe, who at the time worked in the surveillance department. Denby found the men owned a company called Security Surveillance Warehouse, and they would send emails to each other and SSW officials, according to the affidavit.
In the email Burnett would pose as the SSW official and send quotes on equipment, reply to requests for repairs and email invoices to the Hollywood Casino email accounts of Burnett and Krabbe, wrote Denby.
The invoices from SSW would be paid with Burnett's Company Credit Card and the General Manager's Credit Card, and then would be submitted by Burnett on his monthly expense report, according to the affidavit.
The first invoice from SSW was presentd Oct. 29, 2009. “...This scheme ran through October 27, 2011 with total purchases from SSW paid by Hollywood Casino of $547,875.33,” wrote Denby.
An additional $17,368.58 of SSW Invoices were paid on the General Manager's credit card, and according to another Hollywood employee this raised the total to $565,243.91, according to the affidavit.
“Burnett and Krabbe did make some purchases of surveillance equipment … of $151,559.08 … acting as SSW officials” and then took it to Hollywood Casino. None of the purchases were through the casino's purchasing department, and the equipment was not processed through the casino's shipping and receiving department, wrote Denby.
Casino officials believe the casino did receive the equipment. “This would make the total theft to be $413,684.83 in overcharges, fraudulent invoices, and billing by Burnett, Krabbe, and SSW for equipment and repairs never received by Hollywood Casino,” according to the affidavit.
Krabbe and Burnett, after being advised of their rights, told police they were partners of SSW.
Denby subpoenaed bank records for Krabbe, Burnett and SSW. According to the affidavit, both men laundered the money by purchasing a bar in Colerain Township, Ohio, and Burnett also purchased some other real estate under the name Burnett Investments LLC.
Burnett also purchased a Carrier Trailer and a 2005 Hummer. Krabbe laundered the money by putting it into an IRA , according to the affidavit.