The biggest casino in Florida is now under fire.
But the real-estate investment bank and the company behind it may be facing legal troubles, too.
The Wall Street Journal reported Thursday that it has obtained a criminal complaint charging that the company that owns the Tropicana Casino and Resort is illegally concealing evidence of the $1.2 billion loss it suffered as a result of the collapse of the Atlantic City casinos.
The complaint alleges that the Atlantic Resort Group, the company owned by Tropicina, is in violation of state and federal laws by failing to disclose a “large-scale” financial loss as a consequence of the casino collapse, as required by state and local law enforcement.
The casino, which is located on a stretch of the Miami River and is one of the state’s most popular tourist attractions, lost $1 billion between 2011 and 2017.
The casino has since shut down, and a new operator has been chosen to operate the property.
However, Tropicinas owner has repeatedly told the Journal that it will reopen with a new owner and plans to begin operating the resort in 2018.
The state and county have already begun criminal investigations into the alleged wrongdoing, but the Wall Street News reported that it is unclear whether the company is cooperating.
In a statement, Tropia said: “As with all transactions involving the Tropics, we are cooperating fully with the investigation.
Tropicas goal is to remain an Atlantic City-centric destination, which will always remain a key focus for us.”
A spokeswoman for the New York Attorney General’s Office said the complaint was filed on Thursday and that it had not received the complaint.
The complaint alleges two separate violations: First, the bank failed to properly report the $900 million loss as required under state law, and second, it failed to pay the $100 million penalty that was required under the federal Fair Debt Collection Practices Act.
The Atlantic Resort said it is cooperating with the investigations.
The Atlantic Resort and Atlantic City Casino have already been ordered to pay more than $1 million in penalties.
The bank’s owner, the Tropia Group, is also facing criminal charges.
In an email to the Wall Journal, Tropa said:The Atlantic resort, which was set to open in 2018, announced that the resort would reopen after closing in 2020.
The resort will reopen in 2018 and 2019 with a focus on dining and entertainment.