Artichoke Joe's, Card Club in Emeryville to Each Pay $575,000 in Loansharking Settlement

Two Bay Area card clubs that were on suspicion of allowing racketeering, loan sharking and drug dealing in their establishments have agreed to each pay $575,000 in fines to state regulators.

The California Gambling Control Commission has struck a deal with and with Oaks Card Club in Emeryville following a federal indictment, unsealed in March, accusing 15 defendants of several illegal activities committed at the clubs.

About half the defendants were not employees of the two casinos, according to the indictment, but spent several days per week in the clubs' Asian gaming sections, which featured games such as Pai Gow, a Chinese gambling contest played with domino tiles.

But seven defendants worked at the card rooms, and the non-employee loan sharks "relied upon and were assisted by casino employees," according to the indictment.

Crime ring members in the indictment allegedly made loans of $2,000 to $10,000 to casino customers at an interest rate of 10 percent per week and threatened violence if the loans were not repaid.

"The loan sharks used threats and their reputation for violence to ensure repayment of the loans," the indictment alleged.

The agreement signed May 9 by the commission and the card clubs' attorneys stipulate that each casino will pay $575,000 in fines and to cover costs incurred during the criminal investigation.

In addition, the clubs could each owe another $275,000 if they fail to deter similar crimes on their properties in the next two years.

The cases against those arrested on March 2 during the raids are still pending in federal court.

—Bay City News