Imperial Pacific Explained

Imperial Pacific International Holdings Ltd
Founder:Yeung Chung-lung
Location City:Hong Kong
Key People:CEO

Henry Cheang,[1] Majority owner: Cui Lijie

Area Served:China (Hong Kong, Macau) and the United States (Northern Mariana Islands, Guam)
Industry:Conglomerate
Parent:Inventive Star Limited
Subsid:Best Sunshine International

Imperial Pacific International Holdings Limited (HKEX: is a Chinese investment holding company. It was founded with headquarters in Hong Kong and originally named First Natural Foods Holdings until it was renamed in May 2014. It is majority owned by Cui Lijie through her investment vehicle Inventive Star Limited.[2] [3]

History

First Natural Foods was first listed on the main board of the Hong Kong Stock Exchange on 11 February 2002. It was principally involved most aspects of the food business, including frozen and functional food products. Trading for the group was suspended on 15 December 2008 and provisional liquidators were appointed on 7 January 2009 for restructuring. The liquidators were discharged on 4 September 2012 and trade sharing resumed the following day.[4]

In 2013, the Securities and Futures Commission (SFC) took the company's founder and former chairman Yeung Chung-lung to court for alleged embezzlement. The SFC accused him of withdrawing HK$84 million from its account in December 2008.[5]

In December 2013, First Natural Foods announced that it would buy the Macau-based junket operator Hengsheng for HK$400 million.[6] In 2013, First Natural Foods reported a profit of only 1.25 million.[7] In March 2016, Imperial Pacific announced that it would sell its non-gaming subsidiaries to focus on its gaming businesses.[8] In August 2016, Imperial Pacific reported that it had a half-year net profit of HK$837.3 million (US$108 million).[9] Imperial Pacific was Trump inaugural Gala sponsor.[10]

In 2017, the Federal Bureau of Investigation (FBI) raided the construction site of Imperial Pacific's casino in Saipan over a "federal violation of the workplace visa system" following the death of a construction worker in March 2017.[11] [12] [13] Construction workers from a subsidiary of state-owned China Metallurgical Group Corporation were unlawfully employed on the island to build the casino.[14] In April 2017, Bloomberg News reported that the United States Department of Justice was investigating Imperial Pacific for money laundering. The FBI executed search warrants on Imperial Pacific's offices in Saipan again in March 2018.[15]

In April 2019, the United States Department of Labor secured a $3.3 million judgment against Imperial Pacific for wage and overtime violations.[16] In September 2019, the Equal Employment Opportunity Commission filed a lawsuit against Imperial Pacific for sexual harassment and discrimination.[17]

In November 2019, the FBI raided the offices of Imperial Pacific for evidence of money laundering and wire fraud, and a federal grand jury subpoenaed the company regarding a corruption probe involving links with Northern Mariana Islands governor Ralph Torres.[18] [19] [20]

In March 2020, Imperial Pacific disclosed that the Financial Crimes Enforcement Network was probing it for possible violations of the Bank Secrecy Act.[21] In June 2020, the Commonwealth Casino Commission of the Northern Mariana Islands announced that it was seeking to suspend Imperial Pacific's casino license for non-payment of money owed to a community benefit fund.[22]

In April 2024, Imperial Pacific filed for Chapter 11 bankruptcy, stating that it owes its creditors approximately $165.8 million.[23]

Best Sunshine International

Best Sunshine, a subsidiary of Imperial Pacific International Holdings, develops and operates casinos, hotels, and restaurants in the Commonwealth of the Northern Mariana Islands (CNMI).[24], it is reportedly the largest taxpayer in the CNMI, paying US$27.8 million in business gross revenue tax.[25]

In August 2014, Imperial Pacific International was granted a 25-year license to build and operate a casino on Saipan with an option to extend the license for another 15 years.[26] Best Sunshine originally planned to spend US$3.14 billion and operate 2,229 hotel room.[27] but increased the budget to US$7.1 billion the following month to accommodate plans to operate more than 4,200 hotel rooms and 1,600 gaming tables.[28] Imperial Pacific raised US$99.8 million in December 2014 to fund these projects.[29]

Best Sunshine had a soft opening for a temporary casino with six Baccarat tables in July 2015.[30] This casino, named Best Sunshine Live cost US$25 million to build.[9] It is located in Saipan's DFS T-Galleria Mall. In May 2016, Best Sunshine started targeting residents and tourists of Guam by offering charter flights between the two islands.[31] The Best Sunshine Live casino opened on 31 March 2017, though construction for the attached resort continued.[32]

The main casino, named Grand Mariana Casino Hotel and Resort was constructed in Garapan in 2016 and 2017. During this time, the Bureau of Environmental and Coastal Quality (BECQ) gave Best Sunshine multiple fines for discharging wastewater into Garapan's lagoon and violating work hour constraints.[33] Ancient human remains were discovered on the construction site, which will be re-interred some time after construction is finished.[34] The main casino was originally scheduled to open in December 2016 and expected to cost US$550 million.[35] The resort's casino had a soft opening on 6 July 2017.[36]

On 23 March 2017, one of Imperial Pacific's Chinese construction workers fell off a scaffold and died. This led the FBI to search one of Imperial Pacific's offices and make an arrest.[37] On 15 February 2018, Bloomberg Businessweek published an investigative report on the circumstances surrounding the death of this construction worker.[38] An attorney for the Torres Brothers law firm which represented this worker said the report omitted several facts about the case.[39] Imperial Pacific disputed all allegations of wrongdoing and sued Bloomberg for defamation.[40] The FBI and U.S. Department of Homeland Security investigated the case and charged five individuals with harboring undocumented workers.[41]

After Typhoon Yutu, Imperial Pacific opened its Saipan casino with limited operations from 2–15 November 2018. Citing damages from the typhoon, Imperial Pacific shut down this casino from 16 to 18 November, and then resumed operations.[42]

Notes and References

  1. News: Imperial Pacific names new CEO, chairman, inks new contractor . calvinayre.com . 31 January 2018 . 5 February 2018 . https://web.archive.org/web/20180207005237/https://calvinayre.com/2018/01/31/casino/imperial-pacific-new-ceo-chairman-contractor/ . 7 February 2018 . live .
  2. Web site: Imperial Pacific International Holdings Limited: 2019 Annual Report. live. https://web.archive.org/web/20200823232233/https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0427/2020042702572.pdf. 23 August 2020. Hong Kong Stock Exchange. 30.
  3. Web site: Cohen. Muhammad. February 24, 2017. One Woman's Journey From 'Barefoot Doctor' To Casino Billionaire. live. https://web.archive.org/web/20170429232222/https://www.forbes.com/sites/muhammadcohen/2017/02/24/one-womans-journey-from-barefoot-doctor-to-casino-billionaire/. 29 April 2017. 2020-07-04. Forbes. en.
  4. Web site: SFC seeks court orders against founder and former chairman of First Natural Foods . . 24 April 2013 . 6 May 2016 . https://web.archive.org/web/20160508142307/https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=13PR37 . 8 May 2016 . live .
  5. News: Li . Kanis . SFC takes First Natural Foods founder to court over HK$84m embezzlement claim . South China Morning Post . 25 April 2013 . 16 November 2018 . https://web.archive.org/web/20181117114616/https://www.scmp.com/business/companies/article/1222446/sfc-takes-first-natural-foods-founder-court-over-hk84m . 17 November 2018 . live .
  6. Web site: First Natural Foods to buy Hengsheng for HK$400 Mln . Asian Gaming Brief . 6 May 2016 . https://web.archive.org/web/20160603165636/http://agbrief.com/news/first-natural-foods-buy-hengsheng-hk400-mln . 3 June 2016 . dead .
  7. News: Wei. Daniela. Campbell. Matthew. Big Money, Big Questions at Trump Protege's Remote Casino. 14 November 2016. Bloomberg News. 13 November 2016. https://web.archive.org/web/20161113220648/http://www.bloomberg.com/news/features/2016-11-13/obscure-casino-run-by-a-trump-protege-is-raising-big-questions. 13 November 2016. live.
  8. Web site: Morrison . K. . Non-gaming business of Imperial Pacific dropped to focus on Saipan . 3 April 2016 . World Casino News . 25 April 2016 . https://web.archive.org/web/20160415045501/https://news.worldcasinodirectory.com/non-gaming-business-of-imperial-pacific-dropped-to-focus-on-saipan-25138 . 15 April 2016 . live .
  9. News: Coleman . Zach . Small Saipan casino catches up with Macau peers . Nikkei Asian Review . Nikkei . 1 September 2016 . 23 August 2016 . https://web.archive.org/web/20160901112426/http://asia.nikkei.com/Business/Companies/Small-Saipan-casino-catches-up-with-Macau-peers . 1 September 2016 . live .
  10. Web site: Lulu Ramadan . April 13, 2019 . Undisclosed cash flowed at Trump inaugural ball with ties to China, embattled Saipan casino . live . https://web.archive.org/web/20200408030446/https://www.palmbeachpost.com/news/20190412/undisclosed-cash-flowed-at-trump-inaugural-ball-with-ties-to-china-embattled-saipan-casino . 8 April 2020 . April 15, 2019 . .
  11. News: Campbell . Matthew . March 30, 2017 . FBI Visits Office of Saipan Casino Run by Trump Protege . Bloomberg News . live . July 4, 2020 . https://web.archive.org/web/20190327065305/https://www.bloomberg.com/news/articles/2017-03-30/fbi-agents-visit-office-of-saipan-casino-run-by-trump-protege . March 27, 2019.
  12. News: Campbell . Matthew . Farrell . Greg . April 1, 2017 . FBI Makes Arrest Related to Saipan Casino Construction . Bloomberg News . live . July 3, 2020 . https://web.archive.org/web/20170403121450/https://www.bloomberg.com/news/articles/2017-04-01/fbi-makes-arrest-in-connection-with-saipan-casino-construction . April 3, 2017.
  13. News: Campbell . Matthew . February 15, 2018 . A Chinese Casino Has Conquered a Piece of America . Bloomberg Businessweek . live . July 3, 2020 . https://archive.today/20180216203807/https://www.bloomberg.com/news/features/2018-02-15/a-chinese-company-has-conquered-a-piece-of-america . February 16, 2018.
  14. News: Campbell . Matthew . Wei . Daniela . April 10, 2017 . Human Smuggling, Money Laundering Probes Surround Saipan Casino . Bloomberg News . live . July 3, 2020 . https://web.archive.org/web/20191008180449/https://www.bloomberg.com/news/articles/2017-04-10/human-smuggling-money-laundering-probes-surround-saipan-casino . October 8, 2019.
  15. News: Campbell . Matthew . Ha . K Oanh . March 14, 2018 . Saipan Casino Operator Raided by U.S. Agents . Bloomberg News . live . July 3, 2020 . https://archive.today/20180315001525/https://www.bloomberg.com/news/articles/2018-03-14/saipan-casino-operator-is-said-to-be-raided-by-u-s-agents . March 15, 2018.
  16. News: April 27, 2019 . USDOL secures $3.3M judgment against casino developer . The Guam Daily Post . live . July 4, 2020 . https://web.archive.org/web/20190703074252/https://www.postguam.com/news/cnmi/usdol-secures-m-judgment-against-casino-developer/article_b93b96f8-67ec-11e9-bef2-cfc3b41185cd.html . July 3, 2019.
  17. News: De La Torre . Ferdie . September 25, 2019 . EEOC files suit vs IPI for sexual harassment, sex discrimination . Saipan Tribune . live . July 4, 2020 . https://web.archive.org/web/20191211200934/https://www.saipantribune.com/index.php/eeoc-files-suit-vs-ipi-for-sexual-harassment-sex-discrimination/ . December 11, 2019.
  18. News: Aguon . Mindy . November 8, 2019 . FBI raids Saipan governor's office, casino operator . The Guam Daily Post . live . July 3, 2020 . https://web.archive.org/web/20200823235603/https://www.postguam.com/news/local/fbi-raids-saipan-governors-office-casino-operator/article_d8a5d926-0130-11ea-add7-13f9496bb78e.html . August 23, 2020.
  19. News: Aguon . Mindy . November 14, 2019 . Feds seek evidence of wire fraud, money laundering investigation in CNMI . The Guam Daily Post . live . July 3, 2020 . https://web.archive.org/web/20200823235603/https://www.postguam.com/news/local/feds-seek-evidence-of-wire-fraud-money-laundering-investigation-in/article_3ed83cae-0693-11ea-853d-9fa7e337c95c.html . August 23, 2020.
  20. News: Encinares . Erwin . November 15, 2019 . Grand jury summons out . Saipan Tribune . live . July 3, 2020 . https://web.archive.org/web/20191205035847/https://www.saipantribune.com/index.php/grand-jury-summons-out/ . December 5, 2019.
  21. News: De La Torre . Ferdie . May 29, 2020 . FinCEN sees apparent violations at casino . . live . July 3, 2020 . https://web.archive.org/web/20200626144442/https://www.saipantribune.com/index.php/fincen-sees-apparent-violations-at-casino/ . June 26, 2020.
  22. News: Erediano . Emmanuel T. . June 5, 2020 . Casino commission seeks suspension of IPI license over unpaid community chest fund . . live . July 3, 2020 . https://web.archive.org/web/20200823235618/https://www.mvariety.com/cnmi-local/73-local/4220-casino-commission-seeks-suspension-of-ipi-license-over-unpaid-community-chest-fund . August 23, 2020.
  23. Web site: IPI owes creditors over $165M; files for bankruptcy. April 21, 2024. April 21, 2024. Marianas Variety. en.
  24. Web site: Imperial Pacific International Holdings Limited Company Info . EquityNet.com.hk . Equity Group . 29 January 2016 . https://web.archive.org/web/20160304100132/http://www.equitynet.com.hk/1076/companyinfo.php . 4 March 2016 . live .
  25. News: Erediano . Emmanuel T. . Best Sunshine says it has paid $27.8M in BGRT to date . Marianas Variety . 17 June 2016 . 13 July 2016.
  26. Web site: Inside Information: Grant of Casino Resort Developer License and Resumption of Trading . 13 August 2014 . HKExnews.hk . 6 May 2016 . https://web.archive.org/web/20150319233529/http://www.hkexnews.hk/listedco/listconews/SEHK/2014/0813/LTN20140813134.pdf . 19 March 2015 . live .
  27. News: Erediano . Emmanuel T. . NMI retirement crisis 'over' . Marianas Variety . 13 August 2014 . 23 April 2016.
  28. News: Ap . Tiffany . Doubts raised over US$7.1b plan for Imperial Pacific's Saipan casino . 15 December 2014 . South China Morning Post . 29 January 2016 . https://web.archive.org/web/20160305024926/http://www.scmp.com/business/companies/article/1662663/doubts-raised-over-us71b-plan-imperial-pacifics-saipan-casino . 5 March 2016 . live .
  29. News: Rabago . Mark . Imperial Pacific raises $100M . Saipan Tribune . 17 December 2014 . 29 January 2016 . https://web.archive.org/web/20151121144358/http://www.saipantribune.com/index.php/imperial-pacific-raises-100m/ . 21 November 2015 . live .
  30. Web site: Imperial Pacific has soft opening for Saipan casino . GGRAsia . 28 July 2015 . TEAM Publishing and Consultancy . 29 January 2016 . https://web.archive.org/web/20160203105237/http://www.ggrasia.com/imperial-pacific-has-soft-opening-for-saipan-casino/ . 3 February 2016 . live .
  31. News: Eugenio . Haidee V. . Only operating casino in Micronesia targets Guam residents, tourists . 19 May 2016 . Pacific Daily News . 21 May 2016 .
  32. News: Master . Farah . Saipan casino workers protest for payment as FBI cites illegal labor . 14 April 2017 . Reuters . 4 May 2017 . https://web.archive.org/web/20170420121341/http://www.reuters.com/article/us-saipan-casino-protests-idUSKBN17G0BP . 20 April 2017 . live .
  33. News: Erediano . Emmanuel T. . BECQ fines Best Sunshine for repeated violations . Marianas Variety . 29 April 2016 . 6 May 2016.
  34. News: Manabat . Bryan . Still no plan for re-interring ancient human remains found at Garapan hotel project site . Marianas Variety . 1 August 2016 . 16 August 2016.
  35. Web site: Grand Mariana Casino and Saipan's lack of hotel rooms . Marianas Variety . 19 April 2016 . 25 April 2016 . https://web.archive.org/web/20181118164930/http://www.mvariety.com/advertising/special-advertising-feature-2/85480-grand-mariana-casino-and-resort-will-address-saipan-s-lack-of-hotel-rooms . 18 November 2018 . live .
  36. News: Villahermosa . Cherrie Anne E. . Saipan casino's soft opening draws crowds . The Guam Daily Post . 8 July 2017 . 11 July 2017 . 23 August 2020 . https://web.archive.org/web/20200823232241/https://www.postguam.com/business/saipan-casino-s-soft-opening-draws-crowds/article_58e19850-62eb-11e7-9fa8-67c2544075fd.html . live .
  37. News: Campbell . Matthew . Farrell . Greg . FBI Makes Arrest Related to Saipan Casino Construction . 1 April 2017 . Bloomberg . 5 April 2017 . https://web.archive.org/web/20170403121450/https://www.bloomberg.com/news/articles/2017-04-01/fbi-makes-arrest-in-connection-with-saipan-casino-construction . 3 April 2017 . live .
  38. News: Campbell . Matthew . A Chinese Casino Has Conquered a Piece of America . 15 February 2018 . Bloomberg Businessweek . 27 May 2018 . https://archive.today/20180216203807/https://www.bloomberg.com/news/features/2018-02-15/a-chinese-company-has-conquered-a-piece-of-america . 16 February 2018 . live .
  39. News: Encinares . Erwin . Lawyer: Bloomberg article left out key facts . Saipan Tribune . 20 February 2018 . 27 May 2018 . https://web.archive.org/web/20180528135048/https://www.saipantribune.com/index.php/lawyer-bloomberg-article-left-key-facts/ . 28 May 2018 . live .
  40. News: Stradbrooke . Steven . Casino operator Imperial Pacific suing Bloomberg for defamation . 20 February 2018 . CalvinAyre.com . 27 May 2018 . https://web.archive.org/web/20180528141023/https://calvinayre.com/2018/02/20/casino/imperial-pacific-sue-bloomberg-defamation/ . 28 May 2018 . live .
  41. News: Chargualaf . Alana . Woman sentenced in illegal foreign worker case . The Guam Daily Post . 5 June 2018 . 23 June 2018 . 23 August 2020 . https://web.archive.org/web/20200823232241/https://www.postguam.com/news/local/woman-sentenced-in-illegal-foreign-worker-case/article_1c149ecc-67ae-11e8-aa53-ff1db8afc5ce.html . live .
  42. Web site: Wong . Yi Wei . Imperial Pacific resumes Saipan casino operations after two-day break . Macau Business . 19 November 2018 . Macau News Agency . 19 November 2018 . https://web.archive.org/web/20181119124915/http://www.macaubusiness.com/macau-imperial-pacific-resumes-casino-operations-after-two-day-break/ . 19 November 2018 . live .

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