Melco Crown (MPEL) Offices Raided, Authorities in Taiwan Freeze Funds!

 I was the first to write about the filthy dealings inside Melco Crown back in July, available here, so it was quite a delight when I saw this article yesterday,

PACKER CAUGHT UP IN ASIAN CASINO RAID

A couple quotes;

James Packer-backed Melco Crown Entertainment is under investigation over allegedly illegal transfers of $170 million in gambling funds between Taiwan and Macau.

Taiwanese authorities are investigating whether MCE International, a subsidiary of James Packer’s Asian joint venture Melco Crown Entertainment, improperly channelled funds on behalf of Taiwanese gamblers.

Last week, MCE International’s offices in Taipei were searched and its bank accounts frozen in relation to the alleged transfers, according to reports.

Packer’s Australian-listed gambling company Crown has a one-third stake in Melco Crown Entertainment. He is also its co-chairman and a non-executive director.

http://www.brw.com.au/

I can’t help but wonder if this has anything to do with the recent revelation that Bo Xilai may have been using Macau to do his money laundering.  If you’re not familiar with the Bo Xilai, it’s a fascinating story. 

Briton Killed in China Had Spy Links

Wall Street Journal  November 6, 2012,

As far as how Heywood and Xilai’s laundered such large amounts of money out of the China for so long remains a mystery, but some speculate it was through Macau. 

“Chinese prosecutors building a corruption case against Bo Xilai are believed to be investigating whether the fallen politician laundered an illicit fortune through Macau”.  theaustralian.com.au/

The fact that it was the offices in Taiwan is VERY interesting.  Its odd that a company like Melco would even get involved in handling these type of transactions when  Macau claims 75% of gambling revenue is brought in from Junkets—who handle bringing in the high rollers, extending credit, and collecting debt. 

To all of a sudden start assuming this risk makes little sense unless this money actually are flows from different line of business…  A type of business which is likely the only reason certain billionaire hedge fund managers own stakes in Macau—they’re shorting china. 

More on this in the next couple days…especially as it ties back in to Harbinger Group and Spectrum Brands. 

Have a wonderful weekend,

Donald Shekels

  

Warning:  Recent Upgrades = Bankers looking to sell

Self dealing banks like Goldman Sachs and Deutche Bank obviously are anxious to find buyers for Melco Crown.  Wonder why.  Its amazing people still fall for this bullshit.

Melco Crown Entertainment Limited Upgraded to “Buy” at Goldman Sachs

Posted by Alphonse Anthony on Jan 7th, 2013

Deutsche Bank Reiterates Buy on Melco Crown Entertainment ...

Daily Political-Jan 14, 2013

Wells Fargo Reiterates Outperform on Melco Crown Entertainment ...

Jags Report-Jan 11, 2013