Casino Examiner

Caesars Entertainment's Public Pension Fiasco in CA

2012-01-10T17:37:00.000-08:00

Billions of dollars have been lost to Caesars Entertainment by California's teachers pensions (CalSTRS) and public workers (CalPERS) through private equity fat cats Apollo Management and TPG Capital since 2008. Did you know CalSTRS/CalPERS are major limited partners in the world's largest casino entertainment company? Caesars Entertainment has managed to lose $10 billion to the detriment of hard working teachers and police officers in California. The taxpayers of California also have a piece of the action by betting on Black. Apollo Management's CEO, Leon Black, raided the pensions through a placement agent (Alfred Villalobos) who collected $60 million from Apollo Management. The placement agent wined and dined CalPERS officials to persuade them to invest $600 million for 10% of Apollo Global Management according to a civil complaint filed by California's Attorney General (Jerry) Edmund G. Brown in 2010. Apollo Management paid for a private jet to transport a CalPERS high ranked official to New York City from Sacramento. The official and Villalobos attended a high society benefit honoring Black. The CalPERS official pushed through the Apollo Management sale a month later.

Apollo Management's Black fingerprints are in this indictment, but nothing stuck to "Teflon Leon." The money invested from CalPERS/CalSTRS was bundled into the Harrah's/Caesars Entertainment (Hamlet Holdings) buyout in Jan. 2008. Apollo Investment Fund L.P. VI and the 10% ownership of Apollo Management by California's public employees' pension funds assisted in buying Harrah's/Caesars are shown in the SEC filing. Caesars Entertainment later extended much of its debt obligations to 2015 and required teachers and law enforcement pensions to take a haircut in the process. The billions lost to Caesars Entertainment won't be known until then. Who allowed California's teachers and public workers to be owners of the world largest casino?

Caesars, Apollo/TPG, CalPERS/CalSTRS debacle

2012-01-06T15:57:00.000-08:00

JSTAT's concern of billions of dollars lost to Caesars Entertainment by California's teachers pensions (CalSTRS) and public workers (CalPERS) to Apollo Management and TPG Capital in 2008. Did you know CalSTRS/CalPERS are major limited partners in the world's largest casino entertainment company? Caesars Entertainment has managed to lose $10 billion to the detriment of hard working teachers and police officers in California. The taxpayers of California also have a piece of the action by betting on Black. Apollo Management's CEO, Leon Black, raided the pensions through a placement agent (Alfred Villalobos) who collected $60 million from Apollo Management. The placement agent wined and dined CalPERS officials to persuade them to invest $600 million for 10% of Apollo Global Management. Apollo Management paid for a private jet to transport a CalPERS high ranked official to New York City from Sacramento. The official and Villalobos attended a high society benefit honoring Black. The CalPERS official pushed through the Apollo Management sale a month later. Caesars Entertainment extended much of its debt obligations to 2015 and required teachers and law enforcement pensions to take a haircut in the process. The billions lost to Caesars Entertainment won't be known until then. Who allowed California's teachers and public workers to be owners of the world largest casino?

Harrah's/Caesars Entertainment and Apollo Management fiasco

2012-01-04T11:33:00.000-08:00

Here is the Civil Complaint filed by California's Attorney General (Jerry) Edmund G Brown against Apollo Management's fall guys in 2010. Apollo Management's CEO Leon Black fingerprints are in this indictment, but nothing stuck to "Teflon Leon." The money invested from CalPERS/CalSTRS was bundled into the Harrah's/Caesars Entertainment (Hamlet Holdings) buyout in Jan. 2008. Apollo Investment Fund L.P. VI and the 10% ownership of Apollo Management by California's public pension funds assisted in buying Harrah's...

INTRODUCTION
1. This civil enforcement action against defendants ARVCO Capital Research, LLC
("ARVCO"), Alfred Robles Villalobos ("Villalobos"), and Federico R. Buenrostro Jr.
("Buenrostro") involves (1) fraudulent and unlicensed securities broker-dealer activities in
Complaint for Civil Penalties, Ancillary Relief, and Injunctive Relief
violation of California's Corporate Securities Law of 1968 (the "CSL"), specifically, Corporations Code sections 25210, 25216(a), and 25403, and (2) unlawful and/or fraudulent business practices in violation ofBusiness and Professions Code section 17200 (the "UCL").
2.
ARVCO (a company acting without a securities broker-dealer license), from 2005 to 2009, obtained more than $47 million in undisclosed and unlawful commissions for selling approximately $4.8 billion worth ofsecurities to the California Public Employees' Retirement System ("CaIPERS"). CalPERS committed approximately $4.4 billion to a group offunds known as the Apollo Funds and another $400 million went to a fund managed by or affiliated with the Aurora Capital Group, a Los Angeles-based private equity investment firm ("Aurora").
3.
CalPERS' investment decisions are approved by CalPERS' investment staff or its Board ofAdministration (the "CalPERS' Board") ifthe investment exceeds a certain amount. The CalPERS' Board is a statutory body vested with the exclusive power to manage and control the administration and investment ofCaIPERS' assets. Members ofthe CaIPERS' Board are obligated to discharge their duties as fiduciaries and solely in the interest ofCaIPERS' members and their beneficiaries.
4.
ARVCO was formed, operated, and controlled by Villalobos, a former member of the CaIPERS' Board, for the purpose of selling or offering to sell securities through his connections to public pension funds. ARVCO entered into placement agent agreements with
' various investment firms, including firms managing the Apollo and Aurora Funds. When
defendants successfully convinced CalPERS to purchase billions of dollars of securities from these firms, they received millions of dollars in commissions. The defendants did not disGlose these placement agent agreements and 'cortesponding commissions to the CalPERS' Board.
5. Defendants Villalobos and ARVCO were not licensed as securities broker.,dealers and defendants used unlawful and fraudulent means to effect securities transactions. Defendant ARVCO was paid approximately $47 million in a short period oftime purportedly for identifying and introducing CalPERS as a potential investor to the Apollo Funds and a fund set up, affiliated with, or managed by Aurora even though CalPERS knew about and already had invested millions
of dollars in funds managed by Apollo and Aurora before Villalobos and ARVCO started their unlicensed broker-dealer activities.
6.. Over the past twenty years, Villalobos cultivated improper relationships with Buenrostro (CalPERS' former Chief Executive Officer), Leon Shahinian (CaIPERS' Senior InvestmentOfficer), and some members ofthe CaIPERS' Board, including Charles Valdes ("Valdes"), who served on the CaIPERS' Board for more than twenty years and headed CaIPERS' Investment Committee for thirteen years.
7. During the relevant time period, Villalobos manipulated and exerted undue influence over Buenrostro, CaIPERS' board members, and CaIPERS' investment officers. Defendants failed to disclose to the CaIPERS' Board: (1) the placement agent agreements ARVCO entered into with various funds and the commissions it received thereunder, (2) gifts and gratuities that were bestowed upon Buen~ostro and CaIPERS' decision-makers, and (3) a standing
.job offer to Buenrostro which 'he accepte~jpri'dr-to leaving CalPERS.
8.
Defendant Villalobos compromised Buenrostro and some ofCalPERS' decision-makers so much that the latter also failed to report Villalobos' gifts on their California Form 700 (Statement ofEconomic Interests) as required by Government Code sections 87200, 87203, and 87207.
9.
As set forth in detail herein, defendants' conduct compromised the integrity of CaIPERS' investment process and violated (1) California Corporations Code section 25216(a) (prohibiting any broker-dealer from effecting transactions in, or inducing or attempting to induce the purchase or sale of, securities in California by means of a manipulative, deceptive, or fraudulent scheme), (2) California Corporations Code section 25210 (prohibiting any broker-dealer from engaging in the business of effecting transactions in securities in California without obtaining the required broker-dealer certificate from the Commissioner of California's Depart,ment of Corporations (the "Corrill~issioher"), (3) California Corporations Code section 25403 (prohibiting any person who controls another person from knowingly inducing that person to violate any provision ofthe CSL and prohibiting any person from knowingly providing
substantial assistance to another person in violation of any provision ofthe CSL), and (4) the UCL (prohibiting unlawful or fraudulent business practices).
PLAINTIFF AND J1JRISDICTION
10. Edmund G. Brown Jr. is the duly elected Attorney General ofthe State of California and is the chief law enforcemel1t officer ofthe State. The Attorney General is authorized by Government Code sections 12658 and 12660, and Business and Professions, Code section 17204 to bring actions in the name ofthe People of the State of California to enforce the CSL and the UCL.
DEFENDANTS
11.
Defendant ARVCO is, and at all times mentioned herein was, a limited liability company organized and existing under the laws of the State ofNevada, and maintains its principal place ofbusiness in Stateline, Nevada. ARVCO was incorporated on or about December 9,2005. Prior to the incorporation of ARVCO, Villalobos did business through an unincorporated business under the identical name of "ARVCO Capital Research" and worked from his home.
12.
Defendant Villalobos is, and at all times mentioned herein was, the founder, managing director, control person, and~Key f~presentative of ARVCO. He owns 99% of ARVCO while his daughter Carrissa M. Villalobos owns the remaining 1 %.
13.
Defendant Buenrostro is an individual currently residing in Nevada. He became CalPERS' Chief Executive Officer ("CEO") in late 2002 and left CalPERS on June 30, 2008. Prior to 2002, he was a representative of California's Treasurer or Controller for many years. One day after his retirement from CaIPERS, Buenrostro started working for ARVCO as a consultant and received a $300,000 conSUlting fee payable at $25,000 per month.
14.
Each unlawful or fraudulent act alleged herein was engaged in, authorized, or ratified by the officers, directors, managers, agerits, employees, or representatives of defendant ARVCO while engaged in the management, direction, or control of the affairs of defendant ARVCO and while acting within the scope and course oftheir duties.
15. Any reference to any act of defendants means the act of each defendant acting individually, jointly, and/or in concert with all other defendants.
16. The violations oflaw which are the subject of this action occurred throughout the State of California including, but not limited to, the County ofLos Angeles.
17. The true names and capacities of the defendants sued herein as DOES 1 through 100, inClusive, are unknown to the People who therefore sue these defendants by fictitious names. Each ofthe ficti60usly named Defendants is responsible in some manner for the violations of law alleged herein. The People will amend this complaint to show the true names of each when they are ascertained. Whenever reference is made in this Complaint to defendants, the reference shall include DOES 1 through 100, inclusive.
SUMMARY OF FACTS
A. Villalobos And ARVCO, Withont Obtaining A Broker-Dealer Certificate From The Commissioner, Engaged In Unlicensed Broker-Dealer Activities In California.
18. From at least 2005 to May of2009, defendants Villalobos and ARVCO engaged in the business of effecting transactions in securities in California by offering for sale, selling, and/or assisting in the offer and sale of securities to California investors. However, at no time prior to May of2009 did Villalobos or ARVCO obtain a broker-dealer certificate from the Commissioner authorizing them to engage in the business of soliciting sales of and/or selling securities in California.
19. ARVCO marketed, solicir~~k.and negotiated the sales of securities to CaIPERS. Its compensation was typically contingent 6rithe successful solicitation and sale of securities and based on a percentage of the dollar amount committed by CaIPERS. CalPERS purchased billions of dollars of securities through the defendants' unlawful solicitations on behalf of private equity funds.
20. ARVCO touts itself in its marketing brochure as "an international investment
. banking and financial advisory firm focused on providing merger'& acquisition, private placement, valuation, financial opinion and restructuring services." In this same brochure, ARVCO represents that "[w Jhile our service levels and ideals are that of a boutique investment
banking firm, the amounts of capital that we raise compare favorably to our c'ompetitors, ARVCO has raised approximately Twelve Billion (U.S. $) ofcapital for our clients from 19942004, and approximately Four Billion (U.S. $) in 2005 and 2006. In order to put those numbers in perspective, we are one ofthe five major private capital placement agents in the world specializing in private funds and special situations."
21. In a sworn statement submitted to the Securities Exchange Commission (the "SEC"), ARVCO admits engaging in the following activities:
•
reviewing, commenting on, and distributing to potential investors private equity funds' marketing and offering materials, such as private placement memoranda;
•
scheduling and attending presentations to, or assisting in presentations to, representatives oftargeted public pension funds anltheir investment advisors regarding the private equity funds defendants were hired to sell or promote;
•
identifying targeted public pension funds that would be suitable candidates for
investments in such private equity funds;
•
providing strategic advice on how to present and explain the investment products to the targeted public pension funds and their investment advisors; and
•
performing due diligence on potential clients to ensure that it was only promoting high-quality investment products.
22.
During the relevant period as alleged herein, Villalobos was ARVCO's primary representative who solicited investments from public pension funds, such as CaIPERS, on behalf of its clients .. Villalobos was personally involved in all of ARVCO' s engagements and played a key role in providing these services to its::6Uents.
23.
A few employees of ARVCO also acted on behalf of ARVCO in connection with the solicitation of investments from public pension funds. These employees interacted with ARVCO's clients, representatives of public pension funds, and investment advisors acting on behalf of public pension funds. They were supervised, directed, and controlled by Villalobos, an unlicensed broker-dealer.
Buenrostro, an acquaintance of Villalobos and a graduate ofUniversity ofthe Pacific McGeorge School of Law, played akey role in assisting Villalobos and ARVCO in their fraudulent activities. After Villalobos left the CaIPERS' Board in 1995 and started ARVCO, Buenrostro assisted and facilitated Villalobos' and ARVCO's unlicensed and fraudulent broker-dealer activity.
B. Specific Unlicensed Securities Transactions Villalobos And ARVCO Engaged In And Commissions Received And To Be Received For Securities Sold To CaIPERS.
25. ARVCO entered into at least nine placement agent agreements with Apollo and Aurora Funds from 2005 to 2008 for the purpose of assisting these funds in the sale of securities to CaIPERS. Pursuant to these placement agent agreements, ARVCO received more than $47 million in commissions, of which approximately $41 million has already been paid and more than $6 million in receivables remains to be collected. These nine placement agent agreements are summarized as follows:
,1. Apollo vt ;, '. (' ,,'
, .. ' ..... .l'~ ..
26. Villalobos, doing business as ARVCO Capital Research, contracted with Apollo Management VI, L.P. and Apollo Investment Fund VI, L.P. (collectively, "Apollo VI") on or about May 25, 2005, agreeing to act as Apollo VI's "placement agent" and to "use its reasonable best endeavors to identify, and to assist [Apollo VI] in selling [securities] to prospective ARVCO Investors. "
27. CalPERS invested $650 million in Apollo VI on or about August 12,2005. Under
\
the terms of a February 1,2006 addendum to the May 25, 2005 placement agent agreement, Villalobos received $3,864,734 in commissions, the last installment payment ofwhich was made on February 25, 2008.
28. The placement agent agreement obligated Villalobos, doing business as-ARVCO Capital Research, to "disclose (as the same may be required in accordance with applicable laws) to [CalPERS] on or prior to acceptance 'of their subscriptions for Interests that, among other things, Apollo [VI] has agreed to pay to ARVCO, certain fees (respecting [CaIPERS']
subscription) and expenses for ARVCO's activities on behalf ofApollo [VI] under this
agreement."
29. However, ARVCO admitted in a sworn statement submitted to the SEC that it was "not aware of any formal disclosure to any Public Pension Funds of its agreement with Apollo VI, the payments it received thereunder, or the services that it provided to Apollo VI".
2. Apollo Alt~rnative Assets
30. ARVCO entered into an oral placement agent agreement with Apollo Alternative Assets, L.P. sometime in 2006, agreeing to assist the latter in connection with sales of its shares to
CaIPERS. ARVCO successfully induced CalPERS to invest $200 million in Apollo Alternative Assets, L.P. on or about July 27, 2006.
31. Although the placement agentagreement was entered into with ARVCO, which performed the required services, ARVCO and Villalobos arranged with Apollo Alternative Assets,
L.P. to have Capital Formation Partners ("CF Partners"), a company solely owned and controlled by Villalobos, receive the $4.4 million fee on or about July 30, 2006. However, ARVCO admitted in a sworn statement submitted to the SEC that it was "not aware of any formal disclosure to any Public Pension Funds of its agreement with AP Alternative Assets, the payments it received thereunder, or the services that it provided to AP Alternative Assets".
3. Apollo vn:J'"~; ';
32.
ARVCO contracted with Apollo Management VII, L.P., Apollo Investment Fund VII, L.P., and Apollo Overseas Partners VII, L.P. (collectively, "Apollo VII") on or about July 1, 2007, agreeing to act as Apollo VII's "placement agent" and to "use its reasonable best efforts to identify, and to assist [Apollo VII] in selling [securities] to, prospective ARVCO Investors."
33.
CalPERS was listed as one of ARVCO's prospective investors in this placement agent agreement. Pursuant to its placement agent agreement with Apollo VII, ARVCO was entitled to earn a fee equal to 1% of capital commitments received and accepted by Apollo VII subject to c~rtain limitations. With regard to CalPERS, Apollo VII agreed to pay 1 % of capital commitments from CalPERS to the extent that they exceeded $650 million.
CalPERS committed $1 billion in capital to Apollo VII on or about August 30, 2007. As a result, under the placement agent agreement, ARVCO was entitled to receive $3.5 million in commissions (1 % of $350 million) plus expenses. As of August 3, 2009, $875,000 had been paid and $2,625,000 remains to be paid.
35.
Section 10(b)(ii) ofthis placement agent agreement provided that "[a]t the time ARVCO initiates any solicitation activity with respect to [CaIPERS], ARVCO shall furnish to [CaIPERS]" "a copy of a written disclosure document substantially in the form attached as Exhibit D." In order to collect their illegal commissions, defendants procured a disclosure form purportedly signed by Buenrostro on or about November 20, 2007, three months after CalPERS invested $1 billion in Apollo VII.
4. Apollo Global Management
36.
ARVCO orally contracted with Apollo Global Management, LLC (the privately held investment advisor to the Apollo Group ofFunds) sometime in 2007, agreeing to assist the latter in the sale of its shares to CaIPERS.
37.
CalPERS invested $601 million, purchasing an approximately 10% equity interest in Apollo Global Management, on or about July 12,2007. As a result, ARVCO received $13.2 million in commissions. However, ARVCO admitted in a sworn statement submitted to the SEC that it was "not aware of any formal disclosure to any Public Pension Funds of its agreement with ...[Apollo Global Management], the payments it received thereunder, or the services that it provided to ...[Apollo Global Management]".
5. Apollo Europe Management
38.
ARVCO contracted with Apollo Europe Management, L.P. and AP Investment Europe Limited (collectively, "Apollo Europe Management") on January 25, 2008, agreeing to act as a "placement agent" on behalf of Apollo Europe Management in connection with the latter's sale of its shares to CaIPERS. This contract was not signed until January 25, 2008, four months after CalPERS invested in this fund.

CalPERS invested approximately $75 million in Apollo Europe Management on or about September 14,2007 and ARVCO received a $625,000 fee for soliciting CalPERS to make the investment pursuant to this placement agent agreement.
40.
Paragraph 7(b)(ii) required ARVCO to furnish CalPERS with a copy of a written disclosure document substantially in the form attached as an Exhibit to the placement agent agreement. Defendants did not make the required disclosure. Defendants produced a disclosure form purportedly signed by Buenrostro on or about November 20,2007, more than two months after CalPERS invested $75 million in Apollo Europe Management.
6. Apollo EPF Fund
41.
ARVCO contracted with Apollo European Principal Finance Fund, L.P. (the "Partnership"), Apollo European Principal Finance Fund ("Feeder"), L.P., and Apollo EPF Management, L.P. (the "Manager") (collectively, "Apollo EPF Fund") on or about February 20, 2008, agreeing to act as Apollo EPF Fund's"s~placement agent" in connection with soliciting investment by CaIPERS. ARVCO agreed to"'use its reasonable best efforts to assist [Apollo EPF Fund] in selling [securities] to CaIPERS." In return, Apollo EPF Fund promised to compensate ARVCO with a fee equal to 1 % ofthe first $100 million of capital commitment made by CaIPERS.
42.
CalPERS invested approximately $50 million in Apollo EPF Fund on or about February 29,2008 and, as a result, Apollo EPF Fund agreed to pay ARVCO €494,000. One payment of $375,000 was made on April 16,2008. The People do not presently know when and ifthe remaining commissions will be paid.
43.
Section 7 of this placement agent agreement required ARVCO to furnish CalPERS with a copy of a written disclosure document substantially in the form attached as an Exhibit to the placement agent agreement. Defendants produced a disclosure form purportedly signed by Buenrostro on or about January 11, 2008. However, Buenrostro apparently signed this disclosure form more than one month before ARVCO and Apollo EPF signed their placement agent agreement on February 20, 2008. The solicited investment was made by CalPERS on February 29, 2008, only nine days after the subject placement agent agreem"ent was signed.
Apollo SOMA
44.
ARVCO purportedly entered into an oral placement agent agreement with Apollo Special Opportunities Managed Account, L.P. and Apollo SVP Management, L.P. (collectively, "Apollo SOMA") in or about March of2008.
45.
Pursuant to this placement agent agreement, ARVCO received a total of $8 million in commissions as follows: $1,000,000 (on April 10, 2007), $500,000 (on April 25, 2007), $500,000 (on July 2,2007), $1,750,000 (on August 24,2007), $750,000 (on November 16,2007), $2,670,000 (on April 1, 2008), and $830,000 (due in December of2008 but unpaid as of September 24,2009).
46.
This placement agent agreement obligated ARVCO to submit to CaIPERS, at the time of any solicitation, a written disclosure form. However, ARVCO did not submit the requir~d written disclosure to CalPERS when it solicited CaIPERS' investment.
47.
Defendants presented two identical written disclosure forms purportedly signed by Buenrostro on or about November 20,2007 and May 20, 2008. The November 20, 2007 disclosure form was dated nine months after CalPERS invested $800 million in Apollo SOMA and after ARVCO already received $4.5 million in commissions, and some four months before the placement agent agreement between.tmY-parties was even entered into. The May 20, 2008 disclosure form was signed after Buenrostro's authority to act as CEO was terminated by the CalPERS' Board.
8. Aurora Resurgence
48.
ARVCO contracted with Aurora Resurgence Capital Partners LLC, the general partner of Aurora Resurgence Fund (C) L.P., (collectively, "Aurora Resurgence"), on or about April 25,2008, agreeing to act as Aurora Resurgence's "placement agent" and to "use its reasonable best eff0l1s to assist [Aurora Resurgence] in selling [securities] to the ARVCO Investors identified on Exhibit A." CalPERS and California State Teachers Retirement System ("CalSTRS") were identified onExhibit A as potential investors from which ARVCO was hired to solicit investments.
.
Pursuant to this placement agent agreement, Aurora Resurgence agreed to pay ARVCO a fee equal to 1 % ofthe capital commitment by CaIPERS.
50.
CalPERS invested $400 million in Aurora Resurgence on or about September 10, 2007, entitling Villalobos and ARVCO to receive a fee of$4 million ($1 million paid on January 14,2008, $1 million paid on January 7, 2009, $1 million due in January of2010, and $1 million due in January of2011).
51.
Exhibit C, entitled "Investor Disclosure," attached to this placement agent agreement indicated that ARVCO's disclosure of its fees was contemplated by this placement agent agreement. However, ARVCO admitted.in a sworn statement submitted to the SEC that it was "not aware of any formal disclosureto any Public Pension Funds of its agreement with Aurora Resurgence, the payments it received thereunder, or the services that it provided to Aurora Resurgence." Moreover, this placement agent agreement was dated April 25, 2008, seven months after CalPERS made the solicited investment.
9. Apollo Credit Opportunity
52.
ARVCO contracted with Apollo Credit Opportunity Management, LLC and Apollo Credit Opportunity Fund I, L.P. ("Apollo Credit Opportunity") on or about June 19,2008, agreeing to act as Apollo Credit Opportunity's "placement agent" and to "use its reasonable best efforts to assist [Apollo Credit Opportunity] in selling [securities] to CaIPERS."
53.
CalPERS invested $1 billion in Apollo Credit Opportunity on or about April 15, 2008, and as compensation, ARVCO received $9,070,833 (reduced from the contracted amount of$9.25 million) from Apollo Credit Op'pclrtLmity, of which $7,570,833 bas already been paid and tbe remaining $1.5 million is due to be paid in June of2010.
54.
Section 7 of the placement agent agreement required ARVCO to submit to
CalPERS a copy of a written disclosure document substantially in the form of the Exhibit
attached to the placement agent agreement. This written disclosure document called for the
disclosure ofthe amount of fees ARVCO was entitled to receive under the placement agent
agreement.
Relying on a written disclosllre document purportedly signed by Buenrostro on May 20,2008, ARVCO claims that its fees were disclosed to CalPERS. However, the date Buenrostro purportedly signed this document -May 20, 2008 -came more than one month after
. CalPERS had made the $1 billion capital commitment, one month before the placement agent agreement was signed, and after Buenrostro had been stripped by the CaIPERS' Board ofhis powers as CaIPERS' CEO.
56.
In three of the foregoing transactions (Apollo VI, Apollo VII, and Aurora Resurgence), Apollo and/or Aurora reserved the right to terminate the contract "[a]t any time if Mr. Villalobos becomes unable to devote or fails to devote sufficient time and attention to fulfilling the services contemplated hereunder, it being recognized that ARVCO's engagement hereunder is based,.in part, on the understanding that the personal and preferential services of Mr. Alfred Villalobos are essential to the services to be provided by ARVCO."
57.
In seven of the 'forego ing\ transactions (Apollo VI, Apollo VII, ApolloEurope Management, Apollo EPF Fund, Apollo SOMA, Aurora Resurgence, and Apollo Credit Opportunity), Villalobos and ARVCO falsely represented in Paragraph 5 of the placement agent agreement that (1) they were in compliance with applicable local and U.S. laws; (2) they were, and would continue to be, duly authorized and empowered under all applicable laws and regulations to provide the services and engage in the activities contemplated by the placement agent agreements; (3) their performance of the services under the placement agent agreements would not violate any applicable laws including, but not limited to, securities law; (4) they had the required licenses to serve as placement agents for the offer and sale of securities to CaIPERS;
(5) they would not engage in any act or practice that would,directly or indirectly, contravene laws prohibiting bribery or payments to public officials; and (6) they would register or qualify in all relevant jurisdictions required by any activities undertaken by ARVCO and Villalobos pursuant to the placement agent agreenlel1ts (if'not aiready so registered or qualified).

C. Placement Agent Agreements ARVCO Entered Into For Unlicensed Securities Broker-Dealer Activity For Which No Commissions Were Paid.
58. ARVCO also entered into placement agent agreements during the relevant period with two additional funds, agreeing to use its best efforts to sell or assist the funds ,to sell securities to California investors. ARVCO received no compensation pursuant to these placement agent agreements because its solicitation failed. These two placement agent agreements were with (1) Sector Performance, L.P., Sector Performance GP., L.P., and Sector Performance, LLC (dated August 1, 2007); and (2) Kline Hawkes & Co. (dated October 1,2007). The targeted investors for solicitation pursuant to these placement agent agreements were (1) CaIPERS; (2) CalPERS through its investment advisors: (a) Grove Street Advisors, LLC, (b) Hamilton Lane, and (c) Centinela Capital Partners, LLC; (3) CaISTRS; (4) CalSTRS through its investment advisor Cambridge Associates; and (5) Los Angeles Fire and Police Pension Plan through its investment advisor StepStone Group LLC.
D. Defendants Offered And Sold Securities By Means Of A Manipulative, Deceptive, Or Fraudulent Scheme.
1. Villalobos Manipulated Buenrostro, CaIPERS' Board Members, And Investment Officers By Means Of Unlawful Or Fraudulent Business Practices.
, ;1
59.
Villalobos served as DeputyMayor ofLos Angeles in 1993 and was a board member at the State Personnel Board from 1992 to 1995. He also served on the CalPERS' Board from 1992 to 1995. He is known among private equity firms as a person who attempts to exert pressure on CalPERS' representatives in order to convince CalPERS to make the solicited investments.
60.
For example, while searching for someone to assist in the sales of securities, one person expressed his reluctance to hire Villalobos saying: "Frankly, [Villalobos] makes me nervous." Another person recommended staying away from Villalobos, stating that: "He can exert enormous pressure and I'm not sure how although [I am] pretty sure it involves money. They are either on the razor's edge of what's legal, in the gray area or, perhaps, even on the wrong side." Yet another person expressed his frustration with his inability to get a response

from CaIPERS, joking that "maybe I should change my last name to Villalobos to insure that I get a call back."
61. Villalobos cultivated, through gifts and gratuities and promises of fuhlre employment, close and long-term relationships with Buenrostro, former board member Valdes and current Senior Investment Officer Shahinian with intent to influence them to make investment decisions in favor ofthe private equity funds ARVCO represented.
(a) Villalobos' Close Relationship With Buenrostro.
62.
Villalobos and Buenrostro have known each other for almost twenty years. When Buenrostro married in 2004, Villalobos hosted the wedding at his home in Lake Tahoe. Although Buenrostro claimed that he reimbursed Villalobos for the wedding, on information and belief, Villalobos substantially subsidized the cost ofBuenrostro's wedding.
63.
During the period from 2005 to 2008, Villalobos and other ARVCO employees also purportedly took and paid for ski lessons from Buenrostro, who worked as a ski instructor at Squaw Valley while he was CaIPERS' CEO. On information and belief, Villalobos did not actually take lessons from Buenrostro and had no interest in skiing.
64.
Villalobos, Valdes, and Buenrostro made a ten-day trip together in November of 2006, ostensibly to attend the two-day Meed Capital Markets Conference in Dubai (the "Dubai Trip"). They flew together from San Francisco to London on November 17,2006 and then from London to Dub~i the next day. They arrived in Dubai on November 19 and stayed at Emirates Towers Hotel. .,h'l
65.
On information and belief,'Valdes, as the Chairman ofCaIPERS' Investment Committee, sent out an invitation for a reception on behalf of Buenrostro as CaIPERS' CEO. This reception was scheduled for the evening ofNovember 20,2006 at the Presidential SuiteEmirates Towers Hotel. Villalobos co-hosted this reception in his suite in the Emirates Towers Hotel in honor of Buenrostro.
66.
After attending the Meed Capital Markets Conference for two days from November 20 to 21, Villalobos, Valdes, and Buenrostro left Dubai for Hong Kong on November.
When they arrived in Hong Kong, they were picked up by a limousine. They then took a 30minute
helicopter ride from Hong Kong to Macau, a famous gambling location known as the Las Vegas of China, and stayed at Wynn Resorts Macau for three days. About a week prior to this trip, Villalobos wired $100,000 to Wynn Resorts Macau which wired $88,000 back to Villalobos after the trip on November 28, 2006.
67.
On November 25, Villalobos, Valdes, and Buenrostro flew back to Hong Kong from Macau, were transported by a limousine, and returned to San Francisco from Hong Kong. Although Buenrostro submitted $5,071 as expenses for this trip to CaIPERS, on information and belief, Buenrostro's ten-day around the world trip was substantially subsidized by defendant ARVCO and/or Villalobos.
68.
Upon information and belief, Buenrostro attended ARVCO's Christmas parties at Villalobos' home in Lake Tahoe. In 2005, he stayed at Harvey's Resort and Casino for two nights; in 2006, he stayed at Harrah's (.:ike Tahoe Resort and Casino ("Harrah's") for one night. Some of his expenses jn connection with the parties (including food, lodging, and entertainment) were paid by ARVCO.
69.
On information and belief, while Buenrostro was still acting as CaIPERS' CEO, Villalobos discussed employment opportunities at ARVCO with Buenrostro and made a standing, but undisclosed, job offer to Buenrostro. The job offer package also included Villalobos' promise that he would give Buenrostro a condominium. Public records show that sometime in December 2009 Villalobos transferred title of one of the condominiums he owned to Buenrostro.
70. When Buenrostro was asked in March of2008 by Rob Feckner, President of the
. CaIPERS' Board, to respond to written allegations regarding his job performance at CaIPERS, he emailed the written allegations and his comprehensive draft response (which included confidential personnel information about a CalPERS ' employee) to Villalobos, soliciting his comments and advice. Buenrostro also forwarded to Villalobos another email from Rob Feckner addressing concerns about his performance raised by the CaIPERS' Board.

(b) Villalobos' Relationship With Valdes.
71.
Valdes, the head ofCalPERS' Investment Committee for the past thirteen years and a graduate of University ofCalifornia at Los Angeles School ofLaw, is also an acquaintance of Villalobos. In 2005, his campaign to be j;eelected as a CalPERS' board member for a sixth term received $22,400 in contributions froin CF Partners (solely owned by Villalobos) and three ARVCO employees (Dustin Fox, Brian S. David, and Carrissa M. Villalobos), each contributed $5,600. On information and belief, these employees' contributions were made at the direction of Villalobos and were later reimbursed by ARVCO.
72.
In addition to these campaign contributions, Villalobos also paid for or arranged the payment ofValdes' expenses in connection with attending the Academy Awards ceremony in March of2006 (including, but not limited to, two nights' lodging at the Renaissance Hotel in Hollywood, ground transportation by limousine services and tickets to the ceremony).
73.
Upon information and belief, in December of2005 and 2006, Villalobos hosted Christmas parties at his home, as well as parties at casinos, in Lake Tahoe. ARVCO paid for Valdes' expenses (including, but not limited to, accommodations, food, ground transportation, and entertainment) for two days in connectioil with the pmiies.
74.
In November of2006, Valdes, flying first class, went on the ten-day Dubai Trip with Villalobos and Buenrostro. Although Valdes produced a check dated December 1, 2006 and payable to ARVCO in the amount of $23,630 for the Dubai Trip, whether he indeed paid for this trip remains questionable since Valdes had been struggling for years to pay off his debts leading to the filing oftwo bankruptcy petitions (one in 1991 and another in 1997). Further, on August 3, 2006, a judgment lien in the amount of $17,917 was filed on Valdes' house.
75.
On information and belief, Villalobos and/or ARVCO subsidized Valdes'
expenses in connection with the'Dubai trip. Valdes' bank records indicate that he made cash
deposits of$9,000 on November 30, 2006 and of$5,000 on December 2,2006 in order for his
$23,630 check to clear on December 4, 2006. Valdes also made another cash deposit on
December 23,2006 for $4,000, consisting offorty $100 bills.

(c) Villalobos Attempted To Bribe Shahinian.
76. Senior Investment Officer Shahinian was responsible for managing the Alternative Investment Management Program at CaIPERS, which had approximately $44 billion under management as of June 30,)009 and was where all of the investments ARVCO was hired to solicit would come from. Since Shahinian's cooperation and/or complicity was needed in order to further ARVCO's fraudulent scheme, Buenrostro instructed Shahinian to build a closer relationship with Villalobos.
77.
When Villalobos was trying to persuade CalPERS to purchase a ten-percent (10%) equity interest in Apollo Global Management for $700 million in 2007 (as alleged in paragraphs 36-37 above), Shahinian accepted Villalobos' invitation to travel by private jet to New York City to attend a fund-raising event on the evening of May 15, 2007, hosted by the Museum of Modern Art in honor of Leon Black (the "MOMA Event"), the founder and controlling shareholder of Apollo Global Management.
78.
In the early morning of May 15,2007, one ofVillalobos' employees, Dustin Fox, drove Villalobos to Shahinian's house in EI Dorado Hills, California, and picked up Shahinian. They then drove to the Sacramento Executive Airport. ARVCO rented a private jet for $53,000
from Jet Methods in Carlsbad, California, which transported Villalobos and Shahinian alone to LaGuardia Airport in New York. Upon arrival, they were transported by a limousine owned by Bermuda Limousine to the Mandarin Oriental Hotel, where Villalobos shared a two-bedroom suite with Shahinian. Villalobos and/or ARVCO paid $9,552.90 in cOl)nection with their stay at the Mandarin Oriental Hotel.
79.
That evening, Villalobos and Shahinian arrived together at the MOMA Event,
tickets for which cost $2,000 each: Guests of this event included celebrities, members ofNew
York's high-society, and high-ranking public officials.
80.
Villalobos introduced Shahinian to various guests whom he knew during the cocktail hour. At dinner time, Shahinian was seated near the front at a table of guests invited by Leon Black's wife. At some point during the evening, Villalobos and Shahinian met Leon Black, who told Shahinian that he was glad Shahinian could make it..
The next morning, Shahinian was driven by limousine owned by Bermuda Limousine to LaGuardia Airport where he boarded American Airlines for Fort Lauderdale. Upon arrival in Fort Lauderdale, a sedan ordered and paid by Villalobos took Shahinian to the Boca Raton Resort and Club, where he attended the annual meeting for BlackRock, another investment firm that manages some ofCaIPERS' assets. On May 17, 2007, Shahinian returned to Sacramento International Airport on United Airlines where he was met by Paramount Sedans, which drove him home.
82.
All ofthe foregoing expenses, with the possible exception ofthe United Airlines flight back to Sacramento, for this trip were paid by Vil1alooos and/or ARVCO and later reimbursed by Apollo Global Management, amounting 'to at least $63,000.
83.
Shortly after Shahinian returned to Sacramento, he received three bottles of champagne from Villalobos, including a $200 bottle that they discussed at the MOMA Event. On information and belief, on May 30, 2007 (less than two weeks after the MOMA Event),
Villalobos faxed Shahinian the term sheet for the proposed $700 million investment in Apollo Global Management.
84.
On June 18,2007, one month after the MOMA Event, the Investment Committee ofthe CaIPERS' Board (headed by Valdes) conducted a closed session to discuss the proposed $700 million investment in Apollo Global Management. At this meeting, Shahinian made a presentation recommending that the CaIPERS' Board authorize an up to $700 million investment in Apollo Global Management.
85.
Shahinian touted CaIPERS' successful and long-term relationship with Apollo, stating, among other things, that CaIPERS' relationship with Apollo dated back to 1995 and that CalPERS had invested $1.4 billion in various Apollo Funds. Shahinian did not disclose to the Ca'IPERS' Board that he had just returned froni an all-expenses paid trip with Villalobos to New
York to attend the MOMA Event.
(d) No Disclosure of Gifts Paid for by Villalobos and ARVCO.
86. Villalobos' name or the names of his companies (ARVCO and CF Partners) did
not appear on any Form 700 filed by Buenrostro, Valdes, and Shahinian during the period from 19

2005 to 2008. When Buenrostro occasionally disclosed on his Form 700 gifts from persons he
knew worked for ARVCO/Villalobos, he was careful not to mention Villalobos or ARVCO.
Instead, the donors ofthe gifts were identified as Brian David, "a general consultant," or Dustin
Fox, a person working in "fimincial ad'iisory services." These misleading disclosures evidence·
Buenrostro's intent to conceal his relationship with Villalobos and ARVCO, and his awareness ·that his relationship with ARVCO and Villalobos was improper.
87. The CaIPERS' Board specifically requested Form 700s filed by CaIPERS' management staff, including Buenrostro. The non-disclosures or misleading disclosures made by Buenrostro, Valdes, and Shahinian allowed Villalobos to conceal his fraudulent scheme from the CaIPERS' Board, members, and beneficiaries.
88~ For example, unaware ofthe close relationships between Villalobos and Buenrostro, Valdes, and Shahinian, the CaIPERS' Board ultimately approved a $601 million investment in Apollo Global Management on July 12,2007.
2. Defendants Defrauded The CaIPERS' Board And Members By Failing To Disclose The Fees They Earned And The Gifts And Gratuities They Gave.
89.
Although ARVCO's pl,!-ce.lJ,lent.agent agreements required it to disclose these agreements and the commissions thereunder to CaIPERS, ARVCO admits to non-disclosure as to four ofthe nine transactions alleged above.
90.
To conceal further his fraudulent scheme and to assist ARVCO in obtaining
unlawful commissions, Buenrostro acceded to requests by Villalobos to sign disclosure forms·
purportedly on behalf ofCaIPERS, supposedly acknowledging that ARVCO had disclosed the
placement agent agreements and commissions thereunder to CalPERS.
9l. ARVCO and Villalobos previously attempted to get a CaIPERS' senior investment officer to sign a disclosure form but he refused to do so. The disclosure forms purportedly signed by Buenrostro are nowhere to be found in CaIPERS' files. Neither the CaIPERS' Board nor its investment staff knew about the existence ofthese disclosure forms.
92.. Moreover and as more specifically alleged above, all ofthe disclosure forms
purportedly signed by Buenrostro, with orie possible exception, were·dated months after CalPERS

had already approved the solicited investments, Four of the six disclosure forms were purportedly signed by Buenrostro before the placement agent agreements were even entered into. In one instance, the disclosure form was signed after ARVCO already received $4.5 million in commissions.
93. Three of the disclosure forms regarding fees paid to ARVCO by Apollo SOMA, Apollo VII. and Apollo Europe Management were apparently dated the same day (November 20, 2007) although the three transactions closed at different times (February 15, 2007, August 30, 2007, and September 14,2007, respectively).
94. The other three disclosure forms were apparently signed on January 11,2008
(Apollo EPF Fund), May 20, 2008 (Apollo SOMA), and May 20, 2008 (Apollo Credit Opportunity Fund). The latter two were signed almost one month after Buenrostro announced his retirement from CalPERS (on April 29, 2008) and after he had been re lieved of all official responsibilities by the CaIPERS' Board. 95. On information and belief, defendants Villalobos and ARVCO failed to disclose to
both the Apollo Funds and Aurora Resurgence that CalPERS was not aware of these disclosure forms and was not informed of the amounts of the commissions defendants received. CalPERS was shocked when it learned ofthe magnitude of those fees after they came to light. 96. Defendants ARVCO and Villalobos not only concealed the placement agent agreements from CaIPERS, but also concealed their close relationship with Buenrostro. CalPERS
was never informed that Villalobos made a standing offer to employ Buenrostro and that Buenrostro was, in essence, working for and with Villalobos to assist ARVCO in obtaining illegal commissions.
97. Moreover, in furtherance of the fraudulent scheme, defendant Villalobos and ARVCO vio lated Government Code section 20152.5 by failing to disclose gifts they made to
CaIPERS' officials. Government Code section 20152.5 provides that "[n]o matter involving any vendor or contractor in their individual or any other capacity shall be considered during a closed session on any transaction involving lCaIPERS] unless, prior to the closed session, a written disclosure has been submitted by the vendor or contractor of any campaign contributions

aggregating two hundred fifty dollars ($250) or more and any gifts aggregating fifty ($50) dollars or more in value that the vendor or contractor has made during the preceding calendar year to any member of the board or any officer or employee of [CaIPERS]."
98. Defendants Villalobos and ARVCO concealed their fraudulent scheme because
they were not licensed to act as broker-dealers and the exorbitant fees they received were not
commensurate with the value of services they provided. Indeed, the broker-dealer services of
Villalobos and ARVCO were unnecessary because CalPERS initially invested in Apollo in 1995
and in Aurora in 1994 while Villalobos served on the CaIPERS' Board.
99. In their placement agent agreements, Villalobos and ARVCO falsely represented that they had the required licenses to engage in the securities sales activities contemplated in the placement agent agreements, and complied with all applicable securities law and laws prohibiting bribery and payments to CaIPERS' officia:ls.
FIRST CAUSE OF ACTION
Securities Fraud By A Broker~Dealer
(Corporations Code Section 25216(a) Against Villalobos AndARVCO)
(Corporations Code Section 25403 Against Villalobos And Buenrostro)
100. The People re-al1ege and incorporate by reference paragraphs 1 through 99 above as though fully set forth herein.
101. Pursuant to California Corporations Code section 25216(a), "[nJo broker-dealer or agent shall effect any transaction in, or induce or attempt to induce the purchase or sale of, any security in this state. by means of any manipulative, deceptive or other fraudulent scheme, device, or contrivance."
102. Cal. Code Regs., tit. 10, section 260.216(a), a rule of the Commissioner, defines the phrase "manipulative, deceptive, or other fraudulent scheme, device, or contrivance" as including "[aJny act, practice, or course of business which operates or would operate as a fraud or deceit upon any person."

103. California Corporations Code section 25004 defines a securjtjes broker-dealer as "any person engaged in the business of effecting transactions in securities in this state for the account of others or for his own'account."
1 04. In assisting private equity funds or companies in offering and selling securities to CaIPERS, as alleged in this complaint, defendants Villalobos and ARVCO acted as securities broker-dealers as defined by California Corporations Code section'25004.
105.
The private limited partnership interests, shares of stock in various companies, or other interests offered for sale and sold by various private equity funds through defendants Villalobos' and ARVCO's assistance and solicitation, as alleged herein, are "securities" as defined by California Corporations Code section 25019.
106.
In assisting private equity funds or companies in offering and selling securities to CaIPERS, by means of a manipulative, deceptive o~ other fraudulent scheme, device, or contrivance as alleged above, Villalobos and ARVCO violated California Corporations Code section 25216(a) as defined by Cal. Code Regs., tit. 10, section 260.216(a).
107.
Under California Corporations Code section 25403(a), "[e]very person who with knowledge directly or indirectly controls and induces any person to violate any provision of this division or any rule,or order thereunder shall be deemed to be in violation ofthat provision, rule, or order to the same extent as the controlled and induced person."
108.
Under California Corporations Code section 25403(b), "[a]ny person that knowingly provides substantial assistance to another person in violation of any provision ofthis division or any rule or order thereunder shall be deemed to be in violation of that provision, rule, or order to the same extent as the person to whom the assistance was provided."
109.
As a person owning and controlling the business of ARVCO, Villalobos knew that ARVCO had assisted private equity funds and companies in offering and selling securities to CalPERS by means of a manipUlative, deceptive or other fraudulent scheme, device, or contrivance. Nevertheless, he knowingly induced ARVCO to violate and/or provided substantial assistance to ARVCO in violation ofCa:rifOrnia Corporations Code section 25216(a) as alleged

above. Accordingly, Villalobos is liable for the illegal conduct of ARVCO pursuant to California Corporations Code section 25403(a) and/or (b).
110. By engaging in the fraudulent conduct as alleged above in general and more specifically in paragraphs 24,35,39-40,42-43,46-47,52-55,59-70, 86-98, Buenrostro knowingly provided substantial assistance to defendants Villalobos and ARVCO in violation of California Corporations Code .Section 2~2l6(a)) as defined by Cal. Code Regs.; tit. 1 0, section 260.216(a). Accordingly, Buenrostro is liable for the illegal conduct ofVillalobos and ARVCO pursuant to California Corporations Code section 25403(b).
SECOND CAUSE OF ACTION Unlicensed Broker-Dealer Activity . (Corporations Code Section 25210 Against Villalobos And ARVCO) (Corporations Code Section 25403 Against Villalobos)
. 111. The People re-allege and incorporate by reference paragraphs 1 through 99 above
as ~hough fully set forth herein.
112. California Corporations Code section 252·10 provides that "no broker-dealer shall effect any transaction in, or induce or attempt to induce the purchase or sale of, any secu'rity in this state unless the broker-dealer has first applied for and secured from the commissioner a certificate, then in effect, authorizing that person to act in that capacity."
113. California Corporations,Cbde:se.ction 25004 defines a securities broker-dealer as
, .. ' ,"d· ..
"any person engaged in the business of effecting transactions in securities in this state for the
account of others or for his own account."
114.
In assisting private equity funds or companies in offering and selling securities to CalPERS, as alleged in this complaint, defendants Villalobos and ARVCO acted as securities broker-dearers as defined by California Corporations Code section 25004.
115.
The private limited partnership interests, shares of stock in various companies, or other interests offered for sale and sold by various private equity funds through defendants Villalobos' and ARVCO's assistance 8:nd solicitation, as alleged herein, are "securities" as defined by California Corporations Code section 25019.

During the times Villalobos and ARVCO engaged in the business of assisting private equity funds or companies in offering and selling securities to CaIPERS, as alleged in this complaint, they never obtained a certificate authorizing them to act as securities broker-dealers in violation of California Corporations Code section 25210.
117.
Under California Corporations Code section 25403(a), "[e]very person who with knowledge directly or indirectly controls and induces any person to violate any provision ofthis division or any rule or order thereunder shall be deemed to be in violation ofthat provision, rule, or order to the same extent as the controlled and induced person."
118.
Under California Corporations Code section 25403(b), "[a]ny person that knowingly provides substantial assistance to another person in violation of any provision ofthis division or any rule or order thereunder shail be deemed to be in violation ofthat provision, rule, or order to the same extent as the person to whom the assistance was provided."
119.
As a person owning and controlling the business of ARVCO, Villalobos knew that ARVCO engaged in the business of assisting private equity funds or companies in offering and selling securities to CaIPERS, but had not obtained the necessary securities license/certificate to act as a securities broker-dealer. Nevertheless, he lmowingly induced ARVCO to violate and/or provided substantial assistance to ARVCO in violation of California Corporations Code section 25210 as alleged above. Accordingly, Villalobos is liable for the illegal conduct of ARVCO pursuant to California Corporations Code section 25403(a) and/or (b).
TIDRD CAUSE OF ACTION
Unlawful And/Or Fraudulent Business Practices (Business & Professions Code Section 17200) (Against All Defendants)
, ,'~"
120.
The People re-allege and incorporate by reference paragraphs 1 through 99 above as though fully set forth herein.
121.
Defendants and persons acting on their behalf or at their direction engaged in and continue to engage in unfair competition as defined in Business and Professions Code section

17200 by carrying out unlawful or fraudulent business acts or practices which include, but are not limited to, the acts or practices described in detail in Paragraphs 59-99 and summarized below.
122. Defendants ARVCO an~ VilJa)obos and persons acting on their behalf or at their direction violated and continue to violate:
a. California Penal Code section 67 by giving or offering bribes as defined in California Penal Code section 7 to CalPERS' officials with intent to influence them in respect to the investment decisions they made on behalf of CaIPERS; and
b. California Government Code section 20152.5 by failing to disclose the
gifts aggregating fifty dollars ($50) or more in value that they made to CaIPERS' officials. ]23. Defendant Buenrostro violated:
a.
California Penal Code section 68 by receiving bribes with an agreement or understanding that his official actions shall be influenced thereby;
b.
Government Code section 19990 by, among others, receiving gifts and gratuities from ARVCO and Villalobos; and
c.
Government Code\s'ebticihs 87200, 87203, and 87207 by failing to report gifts from Villalobos and A~VCO.
124. Defendants ARVCO and Villalobos and 'persons acting on their behalfor at their direction engaged in and continue to engage in fraudulent business acts or practices which include, but are not limited to, the following:
a. making false representations that Villalobos and ARVCO had the required securities license and complied witli all applicable laws;
b. failing to disclose placement agent agreements and commissions received thereunder; c. giving or offering bribes as defined in California Penal Code section 7 to
CalPERS' officials with intent to influence them in respect to the investment decisions they made on behalf ofCaIPERS;
d.
failing to disclose the' gifts aggregating fifty dollars ($50) or more in value that they made to CalPERS' officials; and making false representations to the funds that they disclosed their commissions to CaIPERS.
125. Defendant Buenrostro engaged in fraudulent business practices by:
a.
receiving bribes with an agreement or understanding that his official actions shall be influenced thereby;
b.
. receiving gifts and gratuities, but failing to disclose them as required by Government Code sections 87200, 87203; and 87207; and
c.
signing forms purportedly disclosing the existence of the placement agent agreements between ARVCO and Apollo, including the amount of commissions paid under those contracts, without authority and without disclosing them to the CalPERS' Board or investment staff.
PRAYER FOR RELIEF
Wherefore, the People pray for judgment against defendants as follows:
1.
Pursuant to Government Code section 12658(a), defendants, their successors, agents, representatives, employees and all persons who act in concert with defendants be permanently enjoined from engaging in any conduct violating California Corporations Code sections 25216(a), 25210, and 25403, including, but not limited to, the acts and practices alleged in this complaint;
2.
Pursuant to Business and Professions Code section 17203, defendants, their successors, agents, representatives, emp'lo)iees 'and all persons who act in concert with defendants be permanently enjoined from directly or indirectly engaging in unfair competition as defined in Business and Professions Code section 17200, including, but not limited to, the acts and practices alleged in this complaint;
3.
Pursuant to Government Code section 12660(a), for an order that defendants pay, jointly or severally, to the People a civil penalty (not less than $25 million) based on .the maximum sum oftwenty-five thousand dollars ($25,000) for each violation of California Corporations Code sections 25216( a), 25210, and 25403, which occurred within four years ofthe filing ofthis complaint;
27
Complaint for Civil Penalties, Ancillary Relief, and Injunctive Relief

4.
Pursuant to Business and Professions Code section 17206, that the Court assess a civil penalty of two thousand five hundred dollars ($2,500) against defendants for each violation of Business and Professions Code section 17200, as proved at trial, but in an amount of not less than $25 million.
5.
Pursuant to Government Code section 12658(b), for an order requiring defendants to disgorge, jointly or severally, all profits and compensation (notless than $70 million) obtained by them as a result of their violations of California Corporations Code sections 25216( a), 25210, and 25403;
6.
Pursuant to Government Code section 12658(b) and Business and Professions Code section 17203, for an order requiring defendants, jointly or severally, to make restitution to California investors, including CalPERS, in an amount not less than $70 million;
7.
Pursuant to Government Code section 12658(a) and/or (b) and Business and Professions Code section 17203, for an order imposing a constructive trust on all of defendants' assets accumulated and acquired from 2005 to the present as a result of their unlicensed, unlawful, or fraudulent activities;
8. For the P·eople's cost of suit incurred herein; and
-.""--.--.-~-.
... _-... _......-.. _...._--_.... _.. --'-.. "-.... _-_.... _._ .._._----...... -,.-... __... _..
9. For such other and further relief as this Court deems just and proper. .
Dated: May 5th, 2010 Dated: May 5th, 2010 Dated: May 5th, 2010 Dated: May 5th, 2010 Dated: May 5th, 2010
EDMUND G. BROWN JR.
Attorney General of California
MARK. J. BRECKLER
Senior Assistant Attorney General
JON M. ICHINAGA
Supervising Deputy Attorney General
IRENE K. TAMURA
W. RICHARD SINTEK DANIEL O'DONNELL Deputy Attorneys General
Signature of Xianchun J. Vendler
Deputy Attorney General
Attorneys for Plaintiff the People State California Signature of Xianchun J. Vendler
Deputy Attorney General
Attorneys for Plaintiff the People State California Signature of Xianchun J. Vendler
Deputy Attorney General
Attorneys for Plaintiff the People State California (X~CHUNJ. VENDLER
Deputy Attorney General Attorneys for Plaintiff the People of the State of California
28
Complaint for Civil Penalties, Ancillary Relief, and Injunctive Relief

Vegas blackjack card counting question

2011-12-26T13:23:00.000-08:00

JSTAT has answered questions at kingjstat@yahoo.com regarding card counting and casinos throughout the years. The Moviemakerjjcasino YouTube Channel teaches the JSTAT Count and here is a email question on how to play in Las Vegas.

Question about the JSTAT Count:

Hello hope all is good I have enjoyed ur utube videos. The last 2 months I got into black jack. Been studying basic strategy and the hi/lo count until I saw ur vids & read ur articles. Im planning a Vegas trip in feb.or march taking a bank roll of about $800-$1000 and the plan is to use ur method table hopping on the $25 min. 2 deck & 6-8 deck games w/good player rules. Is that suicide or should I play on lower limit tables until I get a bigger bank roll & more experience. I get the concept on the double deck game but the 6-8 deck leaves me a little confused cause r u still focused on leaving the table with fewer aces and a bad count? Cause my thinking is even with fewer aces but a good count basic strategy will beat the dealer. Thanks for taking the time to read this I really need to tweak my game before this trip. Any advice ia greatly appreciated.

JSTAT's answer:

The ace side count is better suited for single/double decks and should not be used for the six deckers. Use late surrender and play at games that stand on soft 17, re-split aces, double after splits at 6 deck games in Vegas. MGM Grand, Mirage, Bellagio, Aria, NY-NY, are among the casinos that offer great six deck. Learning late surrender reduces the fluctuations of your bankroll. Back count the six deck games and place $25 bets at true counts of +1 or more. The $25 bets should give you plenty of gunpowder to fire at Vegas Strip casinos with your 1k bankroll.

2011 JSTAT @Casino Examiner Twitter Tweets

2011-12-20T20:43:00.000-08:00

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Rams Dahl tells ref I know you didn't call me for holding. casinoexaminer-jstat.blogspot.com/2011/12/nflcbs… 18 Dec JSTAT Casino_Examiner JSTAT "That's not fucking holding!" said on Rams vs. Bengals game today on CBS. No consent needed by NFL to video for FCC. youtube.com/watch?v=jsNeFT… 18 Dec PKRGSSP pkrgssp PKRGSSP Really looking fwd to hosting a late night show all next week on @QuadJacksDotCom! Talking poker, pop culture, indie rock. 10pm. Listen in. 16 Dec Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Mouth says "That's whats you get motherf**ker!" filmed by me.Mike Matusow blow up while giving a bad beat youtube.com/watch?v=v6GH2p… via @youtube 16 Dec Lon McEachern lonmceachern Lon McEachern No jail time for Barry Bonds. Well, he is the all-time major league leader in walks. espn.go.com/mlb/story/_/id… 16 Dec Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT The Game Show Network's High Stakes Poker on Hold, Could Return in Future bit.ly/u5eIGX 16 Dec JSTAT Casino_Examiner JSTAT Age discrimination at work - NJ casino says dealers, servers must re-apply for jobs after 4-6 years to keep faces fresh washingtonpost.com/lifestyle/trav… 15 Dec JSTAT Casino_Examiner JSTAT @ @AgentMarco Brillant move by Mitt Romney to deflect criticism of his Mormon faith. Betting/gambling $10,000 lifts the stigma of his religion 13 Dec JSTAT Casino_Examiner JSTAT "I'm shocked to find out that gambling has gone on in here" scene from Casablanca with Humphrey Bogart and Capt Renault youtube.com/watch?v=SjbPi0… 13 Dec JSTAT Casino_Examiner JSTAT The Phil Silvers Show (1959). Sgt. Bilko is caught red-handed running a craps game by Col. Hall on cctv. Funny episode. youtube.com/watch?v=PbQEcJ… 12 Dec PKRGSSP pkrgssp PKRGSSP When you win the tourney before a bigger tourney, is that good because you are running hot? Or bad because you've used up all the run good? 11 Dec Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Need evidence of Harrah's/Caesars Entertainment corruption? Casino Examiner: "Teflon" Leon Black stacks Harrah's deal > casinoexaminer-jstat.blogspot.com/2010/05/teflon… 12 Dec Marco Valerio AgentMarco Marco Valerio Last month, it was a privilege to meet @HowardStutz. Today, it is an honor to be quoted in his LVRJ column re: Adelson. lvrj.com/business/sands… 11 Dec Retweeted by Casino_Examiner Howard Stutz howardstutz Howard Stutz Thanks to sources, including @QuadJacksDotCom and @AgentMarco for thoughts on Adeslon's rejection of Internet poker bit.ly/rYscvH 11 Dec Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Who says Mormons don't bet? MITT ROMNEY OFFERS RICK PERRY $10,000 BET 12-10-11 youtube.com/watch?v=5nxrKC… via @youtube 11 Dec Jeff L. Voyles jeffvoyles Jeff L. Voyles I lied, San Diego/Barona Casino today and squeezing in Palm Springs/The Spa Casino and UFC tonight! May test the best Blackjack in CA... 10 Dec Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Nevada Gaming reports 14.98% win $509,299,000 Las Vegas Strip in Oct. Baccarat won $159,519,000, rigged stats on pg17> gaming.nv.gov/documents/pdf/… 9 Dec JSTAT Casino_Examiner JSTAT Poker's bad boy Tony G. @TonyGuoga brings the pain to @phil_hellmuth by @SrslySirius and @Zekday0. Tony G is Qualified. youtube.com/watch?v=5Ki3GY… 8 Dec JSTAT Casino_Examiner JSTAT Blackjack message board (BlackjackInfo) who snubbed JSTAT is closing. Karma happens: What goes around, comes around. blackjackinfo.com/bb/showthread.… 7 Dec JSTAT Casino_Examiner JSTAT Wynn calls Adelson Mr. Magoo.Adelson to oppose online poker legalization, deals severe blow to chances lasvegassun.com/blogs/ralstons… via @lasvegassun 7 Dec JSTAT Casino_Examiner JSTAT New Video: JSTAT on Quadjacks Poker Radio Show forumserver.twoplustwo.com/showthread.php… via @twoplustwoforum 7 Dec JSTAT Casino_Examiner JSTAT Our Kourabiedes/Greek butter cookie recipe/baking video with Christmas approaching on Casino Examiner's YouTube Channel youtube.com/watch?v=lHjnEK… 6 Dec JSTAT Casino_Examiner JSTAT Our Casino Examiner JSTAT on Quadjacks Radio talks blackjack card counting, poker, Harrah's/Caesars corruption, Matusow youtube.com/watch?v=THAlzJ… 5 Dec Gambling Updates gamblingupdater Gambling Updates Casino Examiner JSTAT on Quadjacks Radio: bit.ly/ruUOb1 #casino 5 Dec Retweeted by Casino_Examiner John Stathis JohnStathis John Stathis JSTAT rips into Apollo Management/TPG Capital for fleecing California's teachers to buy Harrah's/Caesars Entertainment. youtube.com/watch?v=THAlzJ… 4 Dec Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Wanna card count at blackjack, hitting and running? Our popular "Card counting at 6 deck 21" with over 135,000 views. youtube.com/watch?v=xMXQUA… 2 Dec JSTAT Casino_Examiner JSTAT @JeffVoyles Good interview from the dark side of casinos concerning card counting at blackjack with @AgentMarco on @QuadJacksDotCom. 2 Dec JSTAT Casino_Examiner JSTAT California's teachers (CalSTRS) are limited partners in TPG V/Apollo VI which bought Harrah's in 2008. $1 billion loss! calstrs.com/Investments/po… 2 Dec JSTAT Casino_Examiner JSTAT MGM Resorts, Wynn, or Caesars Entertainment: Hire political comedian Will Durst @willdurst on the Strip. Very funny guy youtube.com/watch?v=nK1W0o… 1 Dec will durst willdurst will durst Eat the rich? No. Nobody wants that. The rich are way too stringy. The fat poor are where it’s at. Mmmm. Fat poor. Tastes just like chicken. 26 Oct Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Goldman Sachs' Las Vegas Hilton to change name to LVH. Elvis put this joint on the map by performing there years ago. casinocitytimes.com/news/article/l… 30 Nov JSTAT Casino_Examiner JSTAT @MFinney How much has California's teachers retirement system (CalSTRS) lost investing in Harrah's, now Caesars Entertainment? Too hot a Q? 30 Nov JSTAT Casino_Examiner JSTAT Wynn to offer a $5.00 special dividend. Steve Wynn once said "The only way to make money in a casino is to own one." forbes.com/sites/etfchann… 30 Nov JSTAT Casino_Examiner JSTAT Caesars Palace Colosseum operator, AEG Live's Dr. Conrad Murray, gets 4 years for the involuntary manslaughter of Michael Jackson. 29 Nov JSTAT Casino_Examiner JSTAT Drain is circling California taxpayers. Caesars Stock Plan Costs Lenders $558 Million: Corporate Finance sfgate.com/cgi-bin/articl… via @sfgate 29 Nov JSTAT Casino_Examiner JSTAT Reporter Ed Mendel on corruption of CalPERS involving Caesars Entertainment's owner Leon Black, CEO Apollo Management. calpensions.com/2011/03/22/cal… 28 Nov John Stathis JohnStathis John Stathis My Facebook Group "Harrah's, Apollo Management, and CalPERS/CalSTRS debacle". Cliffs of Caesars Entertainment in CA. facebook.com/group.php?gid=… 27 Nov Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT @JerryBrownGov Teachers are laid off, while its retirement fund CalSTRS shoves and loses billions to Wall Street fat cats buying Harrah's 27 Nov ZenZone ZenZoneForum ZenZone JSTAT on Quadjacks Radio tinyurl.com/ctcftkr 26 Nov Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT JSTAT on Quadjacks Poker Radio today at 32:30 - 50:32 .Sure was a lot of fun @QuadJacksDotCom @AgentMarco @SrslySirius. quadjacks.com/2011/11/22/ver… 22 Nov JSTAT Casino_Examiner JSTAT Harrah's sale was done with kickbacks involving Apollo Management to CalPERS agents per @JerryBrownGov Gov. Jerry Brown ag.ca.gov/cms_attachment… 22 Nov JSTAT Casino_Examiner JSTAT @JerryBrownGov CalSTRS lost $744 million in TPG Partners V, L.P. buying Caesars Entertainment (was Harrah's), why? calstrs.com/investments/po… 22 Nov JSTAT Casino_Examiner JSTAT @ @kyparissi Harrahs sale was done with kickbacks involving Apollo Management and CalPERS middlemen per @JerryBrownGov ag.ca.gov/cms_attachment… 22 Nov JSTAT Casino_Examiner JSTAT Caesars Entertainment co-owner Apollo Global Management to run $6 billion Texas Teachers Retirement fund. Poor teachers dealbook.nytimes.com/2011/11/07/k-k… 22 Nov JSTAT Casino_Examiner JSTAT Beginner Card Counter Won $568K Gambling at a Blackjack Casino | Blackjack Champ: blackjackchamp.com/casino-news/13… via @AddThis 22 Nov JSTAT Casino_Examiner JSTAT I go at it with @SrslySirius in the comments section of this vid with @AgentMarco and @themouthmatusow on Quadjacks. youtube.com/watch?v=fvF_k3… 21 Nov JSTAT Casino_Examiner JSTAT Creating chaos in Las Vegas - Casino Examiner JSTAT in Vegas. VIDEO- youtube.com/watch?v=A1ixcd… 19 Nov JSTAT Casino_Examiner JSTAT @ @RealKidPoker @themouthmatusow Wanna see Mike's fanny pack in action? My video - youtube.com/watch?v=v6GH2p… 17 Nov JSTAT Casino_Examiner JSTAT @themouthmatusow Mike "The Mouth" Matusow not exactly upfront about his recent WPT Shooting Star rant with @AgentMarco youtube.com/watch?v=fvF_k3… 17 Nov JSTAT Casino_Examiner JSTAT JSTAT talks about Ken Uston's Jockey Club and card counting in new video, Las Vegas Strip - Card counting casino hotels youtube.com/watch?v=iGd-Ld… 15 Nov JSTAT Casino_Examiner JSTAT What happened in Vegas, did not stay in Vegas. Our occupying Sin City caught on tape. youtube.com/watch?v=9D0p8w… 13 Nov JSTAT Casino_Examiner JSTAT High Stakes Poker's @Nick_Cassavetes son of The Dirty Dozen "Gotta like that Franco"-John, swank party on 11/12 Fairmont in SF @EliosHCB2011 9 Nov JSTAT Casino_Examiner JSTAT Why the Carbon Poker "Bonus Code" @QuadJacksDotCom? Are the QJ Boys Carbon affiliates? Hope the DOJ doesn't close them. carbonpoker.ag/landing/quadja… 8 Nov JSTAT Casino_Examiner JSTAT @mgmgrand We plan on occupying your blackjack tables and card count to our hearts delight.How about comping 8 Pacquiao ringside seats to us? 8 Nov JSTAT Casino_Examiner JSTAT A couple of days to go until we "bring it" to the Vegas Strip on 11/11/11 at MGM Resorts double deck blackjack games. youtube.com/watch?v=Ghm7if… 8 Nov Curt Woodward curtwoodward Curt Woodward Greece to civilization: We brought you into this world, and we will take you back out. 1 Nov Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Happy Halloween! My wife pokes fun at me in this video of arranging cards. Are you playing with a full deck? youtube.com/watch?v=oSdG3y… 22 Oct John Stathis JohnStathis John Stathis A friend of my father, Andy Mousalimas, the founder Fantasy Football. Mousalimas created millions of NFL fanatics today youtube.com/watch?v=sn8Ybw… 16 Oct Retweeted by Casino_Examiner VILAGEIDIOT1 VILAGEIDIOT1 VILAGEIDIOT1 security almost tackles me to check my id to get into the CASINO he looks Twelve. dude seriously takes his job 2 serious 15 Oct Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT @RealKidPoker Daniel Negreanu shooting off his big mouth (again) nailing poker misfits Howard Lederer and Annie Duke. fullcontactpoker.com/poker-journal.… 14 Oct John Stathis JohnStathis John Stathis Wrote this corporate greed piece 2 years ago at Examiner.com - Harrah's, Apollo Management, and CalPERS/CalSTRS debacle shar.es/bbj5N 10 Oct Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Father James Retelas (Greek Orthodox) sermon on achieving goals, improving skills, and overcoming fear. youtube.com/watch?v=iheEiS… 7 Oct JSTAT Casino_Examiner JSTAT I introduce my secret card count as revenge to casinos banning me, enjoy! Card counting at blackjack - JSTAT Count youtube.com/watch?v=AXSJsc… 3 Oct JSTAT Casino_Examiner JSTAT Check this video out -- The War on Card Counters youtube.com/watch?v=x1IqjX… via @youtube 2 Oct JSTAT Casino_Examiner JSTAT Pokerstars Pros accused of cheating at dice at Wynn forumserver.twoplustwo.com/showthread.php… via @twoplustwoforum 2 Oct JSTAT Casino_Examiner JSTAT Drove to Thunder Valley Casino near Sacramento and filmed this, then played a round of golf at Del Webb's nearby. youtube.com/watch?v=n3LUwy… 1 Oct JSTAT Casino_Examiner JSTAT Check this video out -- Gambling Examiner at River Rock Casino youtube.com/watch?v=QQlvPg… via @youtube 24 Sep JSTAT Casino_Examiner JSTAT Howard Lederer (the star in my May video) indicted by DOJ for running a $440 million Ponzi Scheme at Full Tilt Poker. youtube.com/watch?v=4ifJ9Q… 21 Sep JSTAT Casino_Examiner JSTAT @SrslySirius @QuadJacksDotCom "Party at the DOJ" is at 1:25 of "Blackjack card counting practice" video by me. youtube.com/watch?v=Uak4dN… 18 Sep JSTAT Casino_Examiner JSTAT @Casino_Examiner counts the JSTAT Count at single deck, then simulates double deck 21 for mobile handheld practice. youtube.com/watch?v=Uak4dN… 15 Sep JSTAT Casino_Examiner JSTAT The Moviemakerjjcasino YouTube Channel which has created chaos in the casino world via JSTAT Count card counting. youtube.com/user/Moviemake… 14 Sep JSTAT Casino_Examiner JSTAT The Casino Examiner YouTube Channel youtube.com/user/CasinoExa… 13 Sep JSTAT Casino_Examiner JSTAT "Poker Face Hellmuth, Matusow, Deeb, Negreanu, Flack at the WPT Shooting Star 2011", check out my new video - youtube.com/watch?v=llziWw… 12 Sep JSTAT Casino_Examiner JSTAT Drove to Cache Creek Casino today and discovered a $50 minimum single deck blackjack game that paid 3:2 blackjacks. youtube.com/watch?v=r7EMrT… 12 Sep JSTAT Casino_Examiner JSTAT The @Casino_Examiner is going to Vegas on 11/11/11 and is assembling a "Flash Mob" to backcount MGM Grand's 6/8 deck 21 tables on that day. 5 Sep JSTAT Casino_Examiner JSTAT Mike The Mouth Matusow gonna be Mike the Mouth. Blowing up after giving bad beat then insta apology to avoid penalty.. youtube.com/watch?v=v6GH2p… 4 Sep JSTAT Casino_Examiner JSTAT Poker punk Daniel Negreanu threatens me. Punk said one step the face or he would punch me in the face or get in my face youtube.com/watch?v=rQm-Sm… 4 Sep JSTAT Casino_Examiner JSTAT Think card counting at 6 deck blackjack is hard? Try doing a video after 2 glasses of wine as I did in this video. youtube.com/watch?v=xMXQUA… 4 Sep JSTAT Casino_Examiner JSTAT Las Vegas casinos biggest fear, don't retweet! Don't use the JSTAT Count at baccarat, you might win! VIDEO- youtube.com/watch?v=yiLV2h… 4 Sep JSTAT Casino_Examiner JSTAT Okay, so you want to hit the craps tables, but you don't understand the game. JSTAT reveals how to play craps. VIDEO- youtube.com/watch?v=2kCpfv… 4 Sep JSTAT Casino_Examiner JSTAT Check my video out -- Freddy Deeb bad beats Phil Hellmuth on river - Funny! youtube.com/watch?v=D6VaXy… via @youtube 1 Sep JSTAT Casino_Examiner JSTAT @SavagePoker says "We are going to lose Freddy Deeb". A full house on the river forced Savage to eat his words. Funny! youtube.com/watch?v=D6VaXy… 31 Aug JSTAT Casino_Examiner JSTAT What's the difference between praying in church and praying in a casino? In a casino, you really mean it! 31 Aug JSTAT Casino_Examiner JSTAT WPT's Royal Flush Girls quitting according to @QuadjacksDotCom radio. Here is a video I took of them in March 2011. youtube.com/watch?v=twWPkY… 30 Aug JSTAT Casino_Examiner JSTAT Wanna learn how to beat 6 deck blackjack for free? My Card counting at 6 deck 21 is the only table hopping video around youtube.com/watch?v=xMXQUA… 29 Aug JSTAT Casino_Examiner JSTAT I give out my secret winning baccarat system for free using my JSTAT Count. Hope it gives Las Vegas casinos a headache. youtube.com/watch?v=yiLV2h… 28 Aug JSTAT Casino_Examiner JSTAT New Video: Daniel Negreanu : An angry poker player? forumserver.twoplustwo.com/showthread.php… via @twoplustwoforum 27 Aug JSTAT Casino_Examiner JSTAT On this day, Aug. 26, in 1980, hotel workers discovered a 1,500-pound bomb at Harveys Tahoe and it exploded. youtube.com/watch?v=jU1epl… 26 Aug JSTAT Casino_Examiner JSTAT A toe tapping video by talented @Srslysirius "Party at the DOJ". Would love to join forces with him and create a video. youtube.com/watch?v=XYiy7L… 24 Aug Matt Savage SavagePoker Matt Savage People that say they "I don't gamble" and yet they trade stocks are lying to themselves.<~For the record I do both! :-P 23 Aug Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Picked up a few bucks playing 6/12 limit and railed @pkrgssp who was bleeding chips in Event 1 of the Bay 101 Open run by @SavagePoker. 22 Aug JSTAT Casino_Examiner JSTAT "The Track: Where Windows Clean You" - A chapter from "Jimmy The Greek" (1975) written by Snyder. 22 Aug JSTAT Casino_Examiner JSTAT My wife and her mother (born in Kyparissi, Greece) making Greek butter cookies called Kourabiedes. youtube.com/watch?v=lHjnEK… 19 Aug JSTAT Casino_Examiner JSTAT Video shows how ex-officer cheated at blackjack at Sycuan Casino near San Diego by capping his bets. 10news.com/news/28899187/… 18 Aug QuadJacks.com QuadJacksDotCom QuadJacks.com New song by @SrslySirius "Fun Police" video by @AgentMarco is out!! Check it out quadjacks.com/2011/08/14/fun… 15 Aug Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT "The only way to win in a casino is to own one" - Steve Wynn 14 Aug JSTAT Casino_Examiner JSTAT Hey @RealKidPoker, this "Table Talk" rule was violated right in front of @savagepoker, with no penalty. VIDEO- tinyurl.com/65p2eol 13 Aug JSTAT Casino_Examiner JSTAT Why didn't Matt Savage @SavagePoker enforce the "No Disclosure" penalty on Matusow? Here is Savage announcing VIDEO- tinyurl.com/65p2eol 13 Aug JSTAT Casino_Examiner JSTAT Hungary site Pokerakademia.com tinyurl.com/3zse5mj with our Matusow vs Toth video. 1K views in 1 day. VIDEO- tinyurl.com/65p2eol 13 Aug JSTAT Casino_Examiner JSTAT Went to Tahoe today on a coupon run. Lost $10, but videotaped this as proof with Sinatra singing "Summer Wind" VIDEO- tinyurl.com/3m35s5b 11 Aug JSTAT Casino_Examiner JSTAT A. Samuels is a 55 Year old casino executive with a passion for hip hop music. The story of "Livin De Life" VIDEO- tinyurl.com/3sg92kv 10 Aug JSTAT Casino_Examiner JSTAT "If a light bulb needed changing,it takes 3 pit bosses.One would have to hold the bulb,while the other 2 turned the ladder"- Lawrence Revere 8 Aug JSTAT Casino_Examiner JSTAT The best kept secret on the Internet, my YouTube video "Card counting at baccarat" has avoided mainstream media VIDEO- tinyurl.com/3havnwq 7 Aug JSTAT Casino_Examiner JSTAT Since 2007, US consumers spent 11% less at casino gambling and lotteries shot up 16%, according to the Department Of Commerce. 6 Aug JSTAT Casino_Examiner JSTAT "Depend on the rabbit's foot if you will, but remember it didn't work for the rabbit." - R E Shay 5 Aug JSTAT Casino_Examiner JSTAT "I think, therefore I can't play blackjack." - Arnold Snyder, Blackbelt in Blackjack pg. 229 (2005) 4 Aug JSTAT Casino_Examiner JSTAT Wrote this Yahoo article today to complement our YouTube video "Card Counting at 6 Deck 21" associatedcontent.com/article/828047… 2 Aug PKRGSSP pkrgssp PKRGSSP Today in Poker History: Aug 2nd, 1876 "Wild Bill" Hickok was shot down while playing #poker in Deadwood holding Aces and Eights. 2 Aug Retweeted by Casino_Examiner JSTAT Casino_Examiner JSTAT Pat O'Brien will be the CBS Epic Poker announcer according to @pkrgssp. O'Brien was a fixture on the NFL Today Show on CBS 40 years ago. 2 Aug JSTAT Casino_Examiner JSTAT An interesting writer for Forbes , John Navin, writes this article "How To Walk Into A Casino In Las Vegas, Nevada." - tinyurl.com/442hhj6 29 Jul JSTAT Casino_Examiner JSTAT "Las Vegas is the only town in the country where you can have a good time without enjoying yourself." - Joe E. Lewis 26 Jul JSTAT Casino_Examiner JSTAT Our popular "Card counting at 6 deck 21" video on YouTube.It teaches back counting at blackjack and table hopping.VIDEO- tinyurl.com/44yhhya 25 Jul JSTAT Casino_Examiner JSTAT "The High Price of America's Gambling Addiction" is good read about how sick some can be if they can't control gambling. tinyurl.com/3wqvz38 24 Jul JSTAT Casino_Examiner JSTAT Blackjack's JSTAT Count is shown beating the banker bet at baccarat in our video "Card counting at baccarat". VIDEO- tinyurl.com/3havnwq 23 Jul JSTAT Casino_Examiner JSTAT My video "Full Tilt Poker cheats, shut down" with help from @AgentMarco's artwork and the O'Jays "What they do". Video- tinyurl.com/3mhcnct 23 Jul JSTAT Casino_Examiner JSTAT My wife and her mom are in Kyparissi, Greece. A great hidden place away from casinos. We filmed this village here VIDEO- tinyurl.com/3g9yome 22 Jul JSTAT Casino_Examiner JSTAT "The dice of Zeus have ever lucky throws" - Sophocles 18 Jul JSTAT Casino_Examiner JSTAT A drive we took from Athens to Loutraki in Greece to visit and play at the Club Hotel Casino a few years ago. VIDEO- tinyurl.com/3sb2ksd 17 Jul JSTAT Casino_Examiner JSTAT Rivered a straight flush and beat a flush and a set for a big win at Garden City Casino's 6-12 limit today. Rolling Bay Area poker rooms. 15 Jul JSTAT Casino_Examiner JSTAT A potentially deadly disease (Legionnaires' disease) outbreak at Aria in Las Vegas could infect thousands of visitors. tinyurl.com/6kgya4g 15 Jul JSTAT Casino_Examiner JSTAT Played 6-12 limit hold'em at Bay 101 in San Jose today.Won a few bucks and left when 2 fleas (regulars) left the table for a awhile lobbying 13 Jul JSTAT Casino_Examiner JSTAT I filmed this Matusow rant. He says the outburst was his first in the last 5 years after he was caught on my tape.VIDEO- tinyurl.com/65p2eol 11 Jul JSTAT Casino_Examiner JSTAT "No horse can go as fast as the money you bet on him" - Nate Collier 9 Jul JSTAT Casino_Examiner JSTAT I filmed and edited Mike @themouthmatusow Matusow saying "That's what you get motherfucker, that's what you get!" VIDEO- tinyurl.com/3j296jn 8 Jul JSTAT Casino_Examiner JSTAT "Full Tilt Poker cheats, shut down". Thanks to @AgentMarco for creating Howard Lederer "Have You Seen Me, Bro?" VIDEO- tinyurl.com/3otus2t 5 Jul JSTAT Casino_Examiner JSTAT A video my wife and I made on JustinTv called "JSTAT card counting practice." VIDEO- tinyurl.com/4455hnn 4 Jul JSTAT Casino_Examiner JSTAT Giants have a "closer problem" with reliever Brian Wilson says @KeithOlbermann. The wins by Wilson indicates blown saves and weaseling wins 2 Jul JSTAT Casino_Examiner JSTAT Okay, so you want to hit the craps tables, but you don't understand the game. JSTAT reveals how to play craps. VIDEO- tinyurl.com/3wc5jqg 2 Jul JSTAT Casino_Examiner JSTAT My Yahoo article published today "Going Postal at Blackjack" associatedcontent.com/article/819585…

NFL/CBS "That's not f*cking holding!" fixed?

2011-12-18T20:36:00.000-08:00

The 12/18/11 CBS broadcast between the Saint Louis Rams and Cincinnati Bengals contained profanity through the referee's microphone. Rams offensive lineman Harvey Dahl saying "That's not fucking holding" is another NFL malfunction mistake the FCC should investigate. No consent is needed by the NFL to provide this video to the FCC. Gambling could have also been involved. Dahl said in the video "I know you didn't call me for holding" before the profanity rant. It was probably the push at the end of the play. The referee fired the flag from the backfield 15 yards away late in the play to stall the Rams drive. The Bengals were favored 6.5 points and won by 7, 20-13. This phantom call by the NFL referee helped gamblers betting on the Bengals to cover. I don't bet NFL anymore. I am concerned that some games are rigged.

Casino Examiner JSTAT on Quadjacks Radio

2011-12-05T09:34:00.000-08:00

Casino Gambling Examiner JSTAT discusses blackjack card counting, poker, Harrah's/Caesars Entertainment corruption of California's public pension systems (CalPERS/CalSTRS) involving Apollo Management's CEO,"Teflon" Leon Black and more. Teachers get laid off while private equity firms Apollo Management and TPG Capital lose billions of dollars from teachers (and CalPERS workers) retirement funds as a result of the Harrah's/Caesars Entertainment purchase in Jan. 2008. What were the teachers (CalSTRS) thinking? They did not do their homework.

Gambling Examiner at River Rock Casino

2011-09-25T09:32:00.000-07:00

The Casino Gambling Examiner (JSTAT) starts at San Francisco's Golden Gate Bridge and winds up at River Rock Casino for casino gambling. Video poker is played and a glimpse of the table games pit are shown. Good double deck blackjack and baccarat are offered at this Indian casino. River Rock Casino is an enterprise of the Dry Creek Rancheria Band of Pomo Indians. The casino is located at 3250 Highway 128 near Geyserville. Native American arts and craft booths, and live music are shown as part of California Indian Day Celebration on Sept. 24, 2011.

Blackjack card counting practice

2011-09-16T09:36:00.000-07:00

A pro (The Casino Examiner) speed counts the JSTAT Count from a single deck, then simulates double deck 21 for mobile handheld practice. The speed count and double deck blackjack card counting drills are free and doesn't require an app, such as for the iPhone. Just carry the two decks of cards around everywhere and card count while waiting in lines or stuck in traffic.

Cache Creek Casino drive

2011-09-12T16:41:00.000-07:00

The Casino Examiner (JSTAT) drives to Cache Creek Casino and Resort located less than two hours drive from San Francisco, California and less travel time from Sacramento. JSTAT discovered a $50 minimum single deck blackjack game that paid 3:2 blackjacks in the High-Limit pit. Since the Indians have suffered enough throughout US history, JSTAT decided not to crush this Native American gambling hall by card counting that game.

Poker Face Hellmuth,Matusow,Deeb,Negreanu,Flack at WPT Shooting Star 2011.

2011-09-10T20:32:00.000-07:00

I compiled the small clips placed here on Casino Examiner (with some others) into one longer video taken at the WPT Shooting Star 2011 in San Jose, California at the Bay 101 Casino . The WPT authorized this after its broadcast this summer. Below is the write-up on the YouTube page...

Phil Hellmuth (1989 WSOP Main Event Champion), Mike "The Mouth" Matusow, Freddy Deeb, Daniel "Kid Poker" Negreanu, Layne Flack, Matt Savage, Royal Flush Girls, and Vince Van Patten at the 2011 WPT Shooting Star at Bay 101 in San Jose, California. Bad beats, angry rage, and poking fun are shown.

The Casino Examiner (JSTAT) received permission to film and publish this video from the WPT. JSTAT clearly out hustled the experienced WPT camera crew and captured key moments that are shown in this video. The Mike Matusow blow up, the Matt Savage blown call of "We are going to lose Freddy Deeb here", and Deeb's mocking of Savage were missed by the WPT and not broadcast on the Fox Sports Network episode.

Vegas card counting "Flash Mob"

2011-09-05T10:56:00.000-07:00

Your Casino Examiner is assembling a "Flash Mob" to backcount blackjack tables at a major Las Vegas Strip casino before the end of the year. The information will be on Twitter @Casino_Examiner Review the above "Card counting at 6 deck 21" video and be prepared to win a few bucks. What will the pit bosses do with every blackjack table being observed by card counters? Let's make this a first in Las Vegas casino history! The casinos consider card counting a "Cat and mouse game" and this "Flash Mob" will be in the spirit of fun. Card counting is not illegal. By betting with our heads, instead of over them, we are in control of the gaming experience .

Freddy Deeb bad beats Phil Hellmuth on river - Funny!

2011-09-01T08:51:00.000-07:00

"We are going to lose Freddy Deeb" proclaimed tournament director Matt Savage after Phil Hellmuth nailed the nut flush on the turn, with Deeb all in. Deeb had two pair and made a full house on the river, forcing Savage to eat his words. Your Casino Examiner (JSTAT) focused his camera on Hellmuth after the bad beat anticipating an angry rant from Hellmuth. Hellmuth acted like a true gentleman and a classy poker player, not the "Poker Brat" from the past. Deeb talks on the microphone and mocks Savage, a funny moment at the 2011 WPT Shooting Star held at Bay 101 Casino in San Jose, California.

Daniel Negreanu : An angry poker player?

2011-08-15T16:46:00.000-07:00

Poker Pro Daniel Negreanu (Kid Poker) snaps at .08 and says "One step the face" while pointing to your Casino Examiner (who is filming) who is vetted with a press credential from the WPT and Bay 101. Negreanu is smiling and joking during this mean spirited tip when his mad, dark side rage possibly came out, a bad impression. Negreanu was warning me not to take one step forward (which I knew) or he would punch me in the face or get in my face. Kid Poker's remark "One step the face" was read as a threat to your Casino Examiner. Then he tried to bait me by saying "Hah!" while walking to his seat. Your Casino Examiner is a pro and did not care to punch out Negreanu.

This raw footage portrays Daniel Negreanu in a different light. It was on my cutting room floor until Negreanu ripped into famed Tournament Director Matt Savage after ambushing the Quadjacks radio interview of Savage recently. Negreanu showed his mean streak torching Savage. Negreanu's split personality is similar to those villains seen on the LMN Movie Network. More people need to learn about the rage inside Daniel Negreanu! He is not the "Mr. Nice Guy" as ESPN, WSOP and the poker media portrays him to be.

Lake Tahoe Casino Drive-Harrah's,Harveys,Horizon,Montbleu

2011-08-12T16:14:00.000-07:00

Your Casino Examiner (JSTAT) drives through casino row in South Lake Tahoe. Harrah's/Harveys/Horizon/Montbleu are shown. Went to Tahoe on a coupon run this summer. Lost $10, but videotaped this as proof with Frank Sinatra singing "Summer Wind" on the car radio on the way home.

card counting at 6 deck blackjack

2011-08-02T09:02:00.000-07:00

It really surprised me that the count (JSTAT Count) in the video was not included in the card counting world over 20 years ago and still not recognized today by blackjack experts. Since I won with it since 1991 (after I did the math), I decided to stick out my neck and place it on YouTube for the world to see and judge.

I played blackjack with success in the 90's until my picture was plastered in every casino facial recognition system database in Nevada in 1997. So my play was limited to hitting and running to make a few bucks, as shown in this video. I might win enough to pay for airfare and expenses when playing in Las Vegas now. I get more joy sharing the information in this video as revenge to the casinos who banned me from playing blackjack.

The music is loud because casinos are this annoying and it proves that this video was not edited. If you couldn't learn with Elvis and Dean Martin in the background, do not enter a casino!

The JSTAT Count in the video is not the hi-lo count! Hi-lo counts the aces with the tens and does not count 7,8,9's which harms the players with less information for insurance and blackjack frequency prediction. Counting 2-9 as +1 and ten cards as -2 (without the aces) is very easy to count. We have nothing to sell here, it is free!

In this video we are flat betting at a true count of +1 and above without the ace side count. By staying mobile, hitting and running, and playing at different pits and casinos, is an effective weapon against casinos counter-measures. Staying and spreading with the count is inviting heat from paranoid casino bosses. A moving target is hard to hit.

Play at Las Vegas Strip casinos that stand on soft 17, have late surrender, allow resplitiing of aces such as MGM, Aria, Bellagio. Play perfect basic strategy and surrender at the right times. Make sure you bet big on plus counts and more aces are left than normal, and bet low or leave on minus counts with more aces played. It is not easy to win without the odds on your side.

How to play craps

2011-07-02T16:13:00.000-07:00

Okay, so you want to hit the craps tables, but you don't understand the game. Your Casino Examiner JSTAT reveals how to play craps...

In the vicinity of the craps table, one might hear from the stickman, "Our Father who art in Heaven, may this next roll please be yo-eleven" before giving the dice to the shooter. Dealing craps was fun because the players blamed the shooter, not the dealers. The shooters are rotated clock-wise after each 7 out. The shooter retains the dice if the point is rolled. The puck in front of the dealers indicates when it is a come out roll. When the puck is not on a number and off to the dealers side, make your bet on the pass line. Seven or eleven we win and two, three, or twelve we lose. Eleven will never hurt us, but seven is a double edge sword. A point is established if these numbers are not rolled. A point can be 4,5,6,8,9,or 10 depending on which number is rolled. We had the advantage with the come out roll with 8 ways to win and four ways to lose, so we are stuck with the point win or lose. This is a contract bet now and we are not allowed to take the money off the table until the point is rolled again without the dreaded seven. The house advantage on the pass line bet is 1.41% or seven cents for every five dollars wagered. Play on crowded tables to lose less and take odds with the point. Odds are the mathematical probabilities to hit a point. The odds bet is placed behind the pass line and payoff is at true odds or free odds where no casino advantage exists. We are paid two to one with a point of 4 or 10 and three to two with a point of 5 or 9 and 6 to 5 with a point of 6 and 8. Always set a loss limit and don't go on tilt by peeling more money or run to a ATM machine after a drubbing. And if you win, consider yourself lucky and pocket your winnings.

Going postal at blackjack

2011-07-02T12:06:00.000-07:00

While being a USPS postal worker, with a lot of stress, I channeled my anger into winning at blackjack. I felt like "Going Postal" at times for 23 years in that hostile environment. I was a recovering hi-lo card counting loser at 21 before I discovered my JSTAT Count (a ten count) 20 years ago. Yes, the same hi-lo count used by the suckers at MIT in the movie "21". The chumps at MIT went bankrupt according to the History Channel's "Breaking Vegas." I was also disgruntled with "The Book" written by recognized blackjack authorities. Everybody seems to refer to "The Book." "The Book" didn't help me. The Ten Count in the original book "Beat The Dealer(1962)" by Edward O. Thorp was morphed into High-Low in the 1966 edition as the best count. High-low was changed to hi-lo by future authors. A revision that has sent many to the cleaners. The Ten Count has been ignored until now.

In the summer of 2007, my wife and I stayed at Harveys as we do every summer. Her cousin who has been a resident of South Lake Tahoe since 1976 visited us in our room. He brought his wife, son, and an old friend of his. His friend was named Joe. When he introduced us, he said Joe was the casino manager of Harveys, but now retired. I looked at him and knew him right away. I worked at Harveys in 1979. They laid me off because of the gas crisis then. Last one hired, first one fired. I told Joe this and he was shocked. He asked the name of the shift manager at that time. I said his name and Joe believed me. I told him it was a blessing because I moved on to deal the best craps games in Las Vegas. I was pissed that I had to leave Lake Tahoe and my dreams were crushed. For payback of my layoff, I used my JSTAT Count in 1992 at Harveys and crushed them at single deck blackjack. Joe was surprised that I got away with it under his watch. I spread $5-$150 and only made big bets when the hi-lo count was negative and the JSTAT Count showed positive blackjack expectation. I assumed the eye in the sky (surveillance) used hi-lo to evaluate blackjack skill. I won $4000 in 6 hours of nonstop play. This fooled his bosses, and Joe was dismayed.

Our conversation changed to Ed Thorp. Since Joe was the casino manager at the time, I asked him about Thorp's story in "Beat The Dealer(1962)" about Harveys. Thorp wrote on page 112, "In two hours we broke the bank again. The great heaps of chips in front of us included more than $17,000 in profits. I had won about $6,000 and Mr. X, betting wildly, had won $11,000. I was tiring rapidly. The aftereffects of our huge dinner, the increased effort in managing two hands, and the strain of the last few days were telling. I began to find it very difficult to count properly and saw that Mr. X was equally far gone. I insisted that we quit, and I cashed in my $6,000." Joe's eyes lit up and said,"I threw that bum out of here and you know what he did? He hugged me and kissed me and said thank you!" I asked him about Mr. X and Joe said that he was a known player and let Mr. X play on. Thorp was backed off by Joe instead of "insisting that we quit" as written in "Beat The Dealer." It was surreal spending that afternoon with a part of blackjack history. To hear the untold story of Thorp's adventure at Harveys with the casino manager who we both beat under his nose.

The JSTAT Count is an upgrade of Thorp's Ten Count. The non-tens are counted as +1 and tens are -2, the aces are not counted, they are side counted . With more tens (plus count) and aces left, the chances of receiving blackjacks increase. I managed to be barred all over Nevada using my method. Betting with my head, not over it. You can brag to your friends and family about the fear the casinos will have of you if you play perfect. If six 7's, 8's, or 9's and three 2-6's with four face cards are played at a heads up single deck game, we have the advantage. The chance of being dealt a blackjack rises to 6.47% instead of the 4.83% off the top. We can also calculate perfect insurance from the JSTAT Count. The aces are side counted, giving us perfect blackjack frequency prediction and insurance. The hi-lo count is -1 and the eye in the sky will think we are nuts to make a big bet. I employed this method in the 90's at Reno and Lake Tahoe. Played untouched for seven years. The pit and eye thought I was a long term loser. I laughed all the way to the bank.

I use combinatorial analysis and a calculator which is more accurate than computer sims. Using subsets really shows the power of my Ten Count over hi-lo. For example, we are playing two hands heads up at single deck. Our first hand is A,A and the second is A,9. The dealer shows an ace and asks for insurance. The hi-lo count is -4, not an insurable count. My Ten Count differs because taking insurance is a positive expectation event in this situation. +1 with four aces gone with less than 1/4 deck played takes about +3.5 and above to gain the insurance advantage. 4 aces and +1 equals +5, we take the insurance while the hi-lo counter misses out and is clueless. Here is an another example. At double deck with 26 cards(1/2 deck)played, the count is -10 with 6 aces played and no 8,9's have come out. We have 14-16 vs 7,8 for the dealer. Basic Strategy says to hit, so the hi-lo sheep hit and go bust. My Ten Count says stay because we will bust more, leaving the dealer to bust. Asymmetry of 8,9's with a dealer 7,8 upcard produces more stiffs for the dealer. We buck the tide by standing on 14-16 vs 7,8 leaving the dealer to bust more often. To understand more about the imbalance of cards read Chapter 10 of "Playing Blackjack To Win" by Baldwin, Cantey, Maisel, McDermott. My Ten Count using side counts arguably displaces the Hi-OptII count by Lance Humble as the best count ever.

The JSTAT Count dominates because it takes advantage of asymmetry situations from the side counting of aces. Combinatorial analysis with subsets and a calculator was needed to confirm its power. Blackjack computer simulation is insufficient. The casino executives and book/sim sellers who read this will wrongly say that my Ten Count is "very weak, very weak", you who do not drink the casino kool aid will dominate. The hi-lo count is endorsed by "The Man" or the casino industry. Do they have our interests at heart? No way! I got away with fooling Reno/Tahoe for 7 years in the 90's because of the difference of my blackjack count from hi-lo and other counts.

In January 1997, I was barred from playing 21 after winning 4K at the New York-New York six deck game in Las Vegas. I thought the 4K win would be peanuts. I assumed Vegas was a class town and winning a few thousand wouldn't ruffle any feathers. I played for 13 straight hours spreading $25-$300. They kept giving me free beer. I was having a good time and was polite. I worked my tail off at the post office and did not expect harassment from Las Vegas Strip casinos for just counting. Like they say, "Out of the frying pan, into the fire." My picture was faxed to every major casino property surveillance department throughout the Surveillance Information Network (SIN for short) in Nevada. My picture is also in every Facial Recognition Software on the Strip. In the commercials for the World Series Of Poker, Gary Loveman (CEO of Caesars Entertainment) states, " Bet with your head, not over it and gamble responsibly." It is sort of like the Phillip Morris commercials discouraging smoking. My blackjack method flies in the face of conventional blackjack card counting advantage thinking. So if I can't play on a regular basis, others like you can carry the torch.

Blackjack card counting hoax

2011-07-01T10:03:00.000-07:00

Everywhere you look when trying to beat the casinos at blackjack, the hi-lo (or high/low) count rears its ugly head. The movie "21" in 2008 accelerated this count to the masses. Almost every book published since 1966 recommends this count. The internet is infested with 2-6=+1, 10-A=-1. A can't miss count presumably. It can be argued that hi-lo cannot detect blackjacks and insurance. Since aces and tens are counted together, the probability of predicting blackjacks that correspond with the count is impossible. For example, if all the aces are gone in a single deck game (Reno rules) with a +2 count at 1/4 deck played is almost a 2% disadvantage with the 2.4% deduction from blackjacks. More aces played than normal can do serious harm to the player. Conversely, a -2 count at 39 cards left (with all 4 aces remaining to be played), blackjacks will increase from the 4.83% off the top to 5.39%. The hi-lo player missed out on this positive situation. In insurance instances, hi-lo strikes out due to aces being counted as high cards.

A calculator was used to confirm these numbers, not a computer simulator. After Edward O. Thorp's "Beat The Dealer" in 1962, the casinos panicked. Something had to be done. More decks were added to confuse the Ten Count player. The 1966 revised edition of "Beat The Dealer" introduced Harvey Dubner's High/Low count. Julian Braun of the IBM corporation did the faulty computer work that has fooled the masses since. The mob controlled casinos were happy. Card counters bought the half truths hook, line, and sinker. Casino consultant Stanford Wong "fixed" the overlay's of 7,8,9's from Braun's "mistakes" in his 1975 book "Professional Blackjack" using his Blackjack Count Analyzer.

Stanford Wong was "convinced" (most likely by the casino industry) to make a revision in the 1994 edition of "Professional Blackjack." On page 217 it states, "The 1981 and earlier editions of this book contained strategy numbers for high-low adjusted for aces and halves adjusted for aces. Using those numbers required keeping a side count of aces. That material is not included in this edition due to its lack of importance in increasing your win rate." Wong is wrong! Aces do matter and some of the math I provided proves it increases the win rate dramatically.

Most Hi-Lo authors must agree with Wong's "don't worry about it" stance concerning the side count of aces. Good for players who side count aces and bad for the others who drink the casino sponsored kool-aid. These authors will not be published by major gambling publishers if they don't play ball. Aces are to be reckoned with the 10's to satisfy the casino industry or become a internet yahoo.

Casino Examiner's JSTAT blackjack count

2011-07-01T09:54:00.000-07:00

I am a blackjack card counter. I was a recovering hi-lo loser at 21 before I discovered my ten count 20 years ago. Yes, the same hi-lo count used by the suckers at MIT in the movie "21". The chumps at MIT went bankrupt according to the History Channel's "Breaking Vegas". My Ten Count (JSTAT Count) is an upgrade of Edward O. Thorp's Ten Count in "Beat The Dealer". I managed to be barred all over Nevada using my method. Betting with my head, not over it. I hope that you all use the count presented in the videos here on the Casino Examiner blog or the Moviemakerjjcasino YouTube site. No charge, it is free. You can brag to your friends and family about the fear the casinos will have of you if you play perfect.

I used combinational analysis and a calculator which is more accurate than computer sims. Using subsets really shows the power of the JSTAT Count over hi-lo. For example, we are playing two hands heads up at single deck. Our first hand is A,A and the second is A,9. The dealer shows an ace and asks for insurance. The hi-lo count is -4, not an insurable count . The JSTAT Count differs because taking insurance is a positive expectation event in this situation. +1 with four aces gone with less than 1/4 deck played takes about +3.5 and above to gain the insurance advantage. 4 aces and +1 equals +5, we take the insurance while the hi-lo player misses out and is clueless. We can use many subsets to prove the power of the JSTAT Count over hi-lo. The JSTAT Count is as good as the powerful Hi-OptII. It side counts the aces, eights, and nines, like Hi-OptII. It takes advantage of asymmetry situations from the side counts. Combinational analysis with subsets and a calculator was needed to confirm its power. Blackjack computer simulation is insufficient. The YouTube page has created an "underground railroad" of interested counters. I am giving you the important information that is not published and not seen in other YouTube videos. If the casino executives and book sellers who read Casino Examiner here believe that the JSTAT Count is "very weak, very weak", we will dominate. I got away with fooling Reno/Lake Tahoe for 6 years in the 90's because of the difference of my blackjack count from hi-lo and other counts. I am willing to take the blows by revealing the truth of card counting at 21.

Casino Examiner's June Tweets

2011-06-26T16:48:00.000-07:00

Twitter @Casino_Examiner JSTAT

Sharing my love of card counting and casinos without charge that causes headaches to the established casino world. http://www.youtube.com/user/Moviemakerjjcasino
moviejjcasino JSTAT
Las Vegas casinos biggest fear, don't retweet! Don't use the JSTAT Count at baccarat, you might win! VIDEO- http://t.co/UxMEaN77 hours ago

moviejjcasino JSTAT
The WPT broadcast on Fox missed this rant by Mike "The Mouth" Matusow, instead of the fake apology by the Mouth. VIDEO- http://t.co/mB5ba1a25 Jun

moviejjcasino JSTAT
Marco Valerio @QuadJacksDotCom ambushes Full Tilt Poker's Howard Lederer in a parking lot. VIDEO- http://t.co/TWcKPVu24 Jun

moviejjcasino JSTAT
"Don't you know you fool you never can win, use your mentality, wake up to reality" Frank Sinatra
23 Jun

moviejjcasino JSTAT
Ever wonder about that piped-in music in casinos? It enables gamblers to lose more and face the music. My Video -> http://t.co/eRWcHy320 Jun

moviejjcasino JSTAT
Went to River Rock Casino yesterday, 1 1/2 hours north of SF. Won a little at VP. 3 single deckers paid 6:5. 6 decks paid 3:2. 9/5 DDB VP
18 Jun

moviejjcasino JSTAT
Caesars Entertainment owner, TPG Capital, saves Sacramento Kings by buying Maloofs Palms in Las Vegas http://t.co/q0sdjQD15 Jun

moviejjcasino JSTAT
"Our Father who art in Heaven, may this next roll be yo-eleven" Craps stickman's prayer when tipped on 11.
15 Jun

moviejjcasino JSTAT
Disgraced Full Tilt Poker pros Antonius/Adams play tennis for $300K. Card Player Magazine enabled these criminals http://t.co/TML0BUi14 Jun

moviejjcasino JSTAT
"Luck is like a sum of gold, to be spent" Allenby
13 Jun

moviejjcasino JSTAT
Blacklisted man gets eight to 20 years for cheating at craps by slipping chips into winning areas on the table late. http://t.co/at2CFFS13 Jun

moviejjcasino JSTAT
'All we are saying is give greed a chance" - Blackjack Forum's Arnold Snyder Sermon (VIDEO) - Casino Examiner http://t.co/Lhum4V112 Jun

moviejjcasino JSTAT
A 1970 article involving Frank Sinatra playing baccarat at Caesars Palace in Las Vegas and a fight with Mob threats http://t.co/F3NqN7z12 Jun

moviejjcasino JSTAT
"Money is like a sixth sense - And you can't make use of the other five without it." (William) Somerset Maugham
12 Jun

moviejjcasino JSTAT
Think card counting at 6 deck blackjack is hard? Try doing a video after 2 glasses of wine as I did in this video http://t.co/3DoZnHp10 Jun

moviejjcasino JSTAT
Weiner girl, blackjack dealer Lisa Weiss, suspended from Bellagio. Weiner walks while MGM Resorts told her to shut up http://t.co/VgoxpZ510 Jun

AgentMarco Marco Valerio by moviejjcasino
"FTP Doug & the Anti-QuadJacks Conspiracy," my first article in a series about @FullTiltPoker - http://www.quadjacks.com/2011/06/08/the-full-tilt-poker-chronicles-part-1/@QuadJacksDotCom
10 Jun

moviejjcasino JSTAT
All hell would have broken loose if a non WSOP/Rio employee (Clayborne) had me removed for doing my job of reporting. @QuadJacksDotCom
10 Jun

moviejjcasino JSTAT
"The less you bet, the more you lose, when you win" Craps Stickman
10 Jun

moviejjcasino JSTAT
"Light gains make heavy purses" Francis Bacon
8 Jun

moviejjcasino JSTAT @
Watching Marco Valerio of Quadjacks.com radio on his video debut on USTEAM LIVE. @QuadJacksDotCom @AgentMarco
8 Jun

moviejjcasino JSTAT
Rep. Anthony Weiner and the Las Vegas blackjack dealer's dirty chats on Facebook. http://tinyurl.com/3znyqlz8 Jun

moviejjcasino JSTAT
A California nine year police veteran has been arrested at a San Diego Indian casino for cheating at blackjack. http://tinyurl.com/3rd96wk7 Jun

moviejjcasino JSTAT
US Congressman Anthony Weiner 'used congressional phone' for sex chat with a Las Vegas blackjack dealer http://tinyurl.com/3vzac9r7 Jun

moviejjcasino JSTAT
"Gambling, betting on horses is a way of life.The manner in which a man chooses to gamble indicates his character or his lack of it" Saroyan
7 Jun

moviejjcasino JSTAT
Has Full Tilt Poker affliates Card Player/Bluff Magazine received money from suckers in the US who never played? http://tinyurl.com/3v247q56 Jun

moviejjcasino JSTAT
Howard Stutz of the Las Vegas Review Journal attacks poker idol Phil Ivey through Full Tilt Poker press releases http://tinyurl.com/3fe2nxl6 Jun

moviejjcasino JSTAT
"There's a sucker born every minute" Phineas T. Barnum
6 Jun

moviejjcasino JSTAT
Was able to capture poker pro and party boy Layne Flack on video and he lit up the room http://tinyurl.com/4y4ctgc5 Jun

moviejjcasino JSTAT
"The dice of Zeus have ever lucky throws" Sophocles
5 Jun

moviejjcasino JSTAT
Fox reports about a family facing dire straights after online poker shutdown http://tinyurl.com/3mjeyb84 Jun

moviejjcasino JSTAT
Sure would to read like a story about a family saved from the evils of gambling with the shutdown of online poker in the USA on Black Friday
4 Jun

moviejjcasino JSTAT
We need at least a true count of +1 to beat 6 deck blackjack by table hopping using perfect basic strategy. http://tinyurl.com/44yhhya4 Jun

moviejjcasino JSTAT @
@QuadJacksDotCom Listening to the sparkling voice of Marco Valerio on Quadjacks radio describing the World Series of Poker and other news.
3 Jun

moviejjcasino JSTAT
Welcome to those who clicked this Twitter page from the Moviemakerjjcasino site on YouTube.
3 Jun

moviejjcasino JSTAT
"Do not reveal your thoughts to everyone, lest you drive away your good luck" Apocrypha, Ecclesiasticus 8:19
2 Jun

moviejjcasino JSTAT
"Everything is sweetened by risk" Alexander Smith
2 Jun

moviejjcasino JSTAT
"The folly of one man is the fortune of another" Francis Bacon
2 Jun

moviejjcasino JSTAT
"A small leak will sink a great ship" Thomas Fuller
2 Jun

moviejjcasino JSTAT
"If a little does not go, much cash will not come" Chinese Proverb
2 Jun

moviejjcasino JSTAT
"In a few years there will be only five kings in the world - The King of England and the four kings in a pack of cards" King Farouk
2 Jun

moviejjcasino JSTAT
"Shallow men believe in luck...Strong men believe in cause and effect" Emerson
2 Jun

moviejjcasino JSTAT
"Not a man alive / Has so much luck that he can play with it" William Butler Yeats
2 Jun

moviejjcasino JSTAT
"Fortune's a right whore: / If she give out, she deals it in small parcels, / That she may take away all at one swoop" John Webster
2 Jun

moviejjcasino JSTAT
"I must complain the cards are ill shuffled, till I have a good hand" Jonathan Swift
2 Jun

moviejjcasino JSTAT
"Luck never made a man wise" Seneca
2 Jun

moviejjcasino JSTAT
"Whoever plays deep must necessarily lose his money or his character" Lord Chesterfield
2 Jun

moviejjcasino JSTAT
"True luck consists not in holding the best of the cards at the table / Luckiest he who knows just when to rise and go home" John Hay
2 Jun

moviejjcasino JSTAT
Think baccarat can't be beaten? JSTAT spills the beans to the followers here in this YouTube video http://tinyurl.com/3havnwq2 Jun

moviejjcasino JSTAT
Back stabbers Phil Ivey and Howard Lederer of Full Tilt Poker, are featured in this video http://tinyurl.com/3mhcnct2 Jun

moviejjcasino JSTAT
Phil Ivey is skipping the World Series of Poker because Full Tilt Poker, hasn't paid back player deposits http://tinyurl.com/3vk5dlh2 Jun

Card Player/Bluff Magazine online poker scam

2011-06-06T14:30:00.000-07:00

Has Full Tilt Poker affliates (Bluff Magazine, Card Player Magazine, PokerNews) received money from the suckers in the United States who never played for real money on the site? They are affiliates and can pocket up to $200 for each player referred, which is called a CPA (Cost Per Acquisition). "Full Tilt has begun crediting funds to affiliate accounts, nearly two months after Black Friday, eGaming Review has learned."

Card Player Magazine and Bluff Magazine are found in most casinos and these issues are free. I picked up an issue of Card Player and signed up for a free Full Tilt Poker account on April 14, 2011. The two page Full Tilt Poker ad offered a 100% sign-up bonus up to $600 when entering the Card Player code (CPUS) while signing up. All you needed was a credit card. There is a saying "You get what you paid for" and decided to sleep on the free magazine's offer. On April 15, 2011, the Department of Justice (DOJ) closed down Full Tilt Poker (and two other online sites) on what is known in the poker community as Black Friday in the USA. I would have lost $600, if I did not sleep on it.

Card Player would have received a $200 kickback into their Full Tilt Poker account this month, while I would have been left holding the bag.

Casino gambling quotes

2011-06-02T12:22:00.000-07:00

"Curst is the wretch enslaved to such a vice, who ventures life and soul upon the dice" Horace

"Some people are so fond of ill-luck that they run half-way to meet it" Douglas Jerrold

"When Fortune smiles, embrace her!" Thomas Fuller

"Good fortune is not known until it is lost" Cervantes

"Gambling - The sure way of getting nothing for something" Wilson Mizner

"Man is a gaming animal" Charles Lamb

"Nine gamblers could not feed a single rooster" Yugoslav Proverb

"There is enough energy wasted in poker to make a hundred thousand successful men every year" Arthur Brisbane

"Money won, virtue gone" Yiddish Proverb

"Give me chastity and continence, but do not give it yet" St. Augustine

"When you win, nothing hurts" Joe Namath

"Bookie - A pickpocket who lets you use your own hands" Henry Morgan

"You have to be smart enough to understand the game and dumb enough to think it matters" Eugene McCarthy

"The better the gambler the worse the man" Publilius Syrus

"The next best thing to winning at cards is losing at cards" - "Nick The Greek" Dandolos

"I am sorry I have not learned to play at cards. It is very useful in life: It generates kindness and consolidates society" Samuel Johnson

"Gaming corrupts our dispositions, and teaches us a habit of hostility against all mankind" Thomas Jefferson

"Nothing stings more sharply than the loss of money" Livy

"The strength of Monaco is the weakness of the world" H.A. Gibbons

"A gamester begins by being a dupe and ends by being a rascal" Descamps

"The gambling known as business looks with austere disfavor upon the business known as gambling" Ambrose Bierce

"There are two times in a man's life when he should not speculate: When he can't afford it, and when he can" Mark Twain

"I long ago came to the conclusion that all life is six to five against" Damon Runyon

"The safest way to double your money is to fold it over once and put it in your pocket" Kin Hubbard

"The only man who makes money following the races is the one who does so with a broom and shovel" Elbert Hubbard

"Keep flax from fire, and youth from gaming" Benjamin Franklin

"He that lives upon hope will die fasting" Benjamin Franklin

"At any rate, I am convinced that God does not play dice with the Cosmos" Albert Einstein

"Gambling is the child of avarice, the brother of iniquity, and the father of mischief" George Washington

"If you must play, decide upon three things at the start: The rules of the game, the stakes, and the quitting time" Chinese Proverb

"The devil invented dicing" St. Augustine

"Horse sense is a good judgement which keeps horses from betting on people" W.C. Fields

Tweeting for casino players

2011-05-26T18:04:00.000-07:00

Your Casino Examiner has the Twitter name of @Casino_Examiner and followers are encouraged! Below is an experiment of placing 16 tweets in one day, in the hopes of collecting more followers on May 26, 2011. The tweets cover all sorts of subjects in the wonderful world of casino gambling. As of press time, the Twitter account has 92 followers while following 80.

Marco at Quadjacks is very concerned about Full Tilt Poker owner Howard Lederer missing since Black Friday 4/15 http://tinyurl.com/3mhcnct18 minutes ago Favorite Reply Delete

» moviejjcasino JSTAT
"Nick The Greek" Dandolos once said "Play the don't pass line and take the odds. Using that method, I've lost several million dollars."
38 minutes ago Favorite Reply Delete

» moviejjcasino JSTAT
Saw Don Rickles in 78 at Harrah's Reno.Rickles ordered a spotlight on Bill Harrah and ripped the laughing Harrah.Harrah died 1 month later
49 minutes ago Favorite Reply Delete

» moviejjcasino JSTAT
Ever noticed those white 737 jets with the red trimmings taking off/landing at McCarran Airport in Las Vegas? They take workers to Area 51.
1 hour ago Favorite Reply Delete

» moviejjcasino JSTAT
The slots in Greece can be set to play with any item that keeps the play button down.Funny seeing Greeks smoking/joking in the aisle
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» moviejjcasino JSTAT
When I was on the stick at craps and the crew had tip on 11, I led in prayer "Our Father who art in Heaven, may this next roll be yo eleven"
1 hour ago Favorite Reply Delete

» moviejjcasino JSTAT
Deceased Andy Glazer, The Poker Pundit, was a customer of mine while working as a letter carrier in Los Altos, California. A great guy!
2 hours ago Favorite Reply Delete

» moviejjcasino JSTAT
Think video poker is random?It isn't!The random selection process must meet 95% limits.Nev. Gaming reg 14.040(2) http://tinyurl.com/3rguej92 hours ago Favorite Reply Delete

» moviejjcasino JSTAT
Was not surprised Del Webb was told to sell its casinos by the Feds because of mob involvement after I left the Mint, also owned by Del Webb
3 hours ago Favorite Reply Delete

» moviejjcasino JSTAT
I was hired as a craps dealer at the Mint in Vegas in 1980. Was told to keep my nose clean or my hands will be broken and cops not called.
3 hours ago Favorite Reply Delete

» moviejjcasino JSTAT
In case of an earthquake, go to a keno lounge. To my knowledge, nothing has ever been hit in one.
3 hours ago Favorite Reply Delete

» moviejjcasino JSTAT
The best throw of the dice is to throw them away
3 hours ago Favorite Reply Delete

» moviejjcasino JSTAT
Caesars Entertainment owner, Apollo Management, is buying the rights to the popular show American Idol http://tinyurl.com/3sobjx53 hours ago Favorite Reply Delete

» moviejjcasino JSTAT
Addicted to Quadjacks.com radio after Fed's raid of online poker April 15. Sparkling Marco Valerio speaks to the elite of the poker world
3 hours ago Favorite Reply Delete

» moviejjcasino JSTAT
Joe Agosto,the Entertainment Director of the Tropicana comped me a couple nights in the 70's. Agosto was accused of being a mobster by FBI
3 hours ago Favorite Reply Delete

» moviejjcasino JSTAT
I dealt blackjack to the Amazing Kreskin at Harold's Club in Reno years ago. He beat me and admitted he does not read minds.
3 hours ago Favorite Reply

Full Tilt Poker cheats, shut down

2011-05-15T18:19:00.000-07:00

These "respected" poker players who own Full Tilt Poker, have been shut down by the Department of Justice (DOJ) since April 15, 2011. The regular online poker players (like you and me) in the United States were scammed, but business will continue as usual for the rest of the world. Full Tilt Poker players from the US are starting to get antsy waiting to withdraw their funds from their poker accounts.It doesn't seem like it will happen any time soon. Full Tilt Poker has no accounting of the millions of dollars of players funds that were seized by the United States government.