Saipan-based Imperial Pacific International (IPI) owner, Ji Xiaobo, was identified as a mafia kingpin by the Chinese court last Friday.
The information was disclosed when the court in Beijing released another related case, indicating that a group of 15 investors associated with IPI has been convicted of operating a casino, illegally trespassing on residential property, collecting illegal debts, and transporting others to cross the border illegally. They were sentenced to 1 year and 8 months to 8 years and 6 months, respectively.
According to Chinese media reports, Ji Xiaobo’s aunt, the sister of his mom, Cui Limei, was given eight years and six months in prison for operating a casino. In this case, Ji Xiaobo was mentioned as the leader of the criminal group. According to the statement, Ji Xiaobo is involved in a separate case. Ji hasn’t been seen in public for more than two years, allegedly hiding in Tokyo. Chinese media believe that the Chinese authorities are still on the hunt for him.
Ji was allegedly under investigation by Chinese authorities in 2020, as he issued a statement through a lawyer reiterating that it was only a rumor.
Ji’s mom, Cui Lijie, is the former chairman of the Hong Kong-listed IPI, who resigned in 2021 due to debt problems.
Ji entered the Macau gaming industry as a junket in 2011, opening his first VIP room under Heng Sheng Junket group in July of that year.
Hengsheng started with one VIP room and 12 tables at Galaxy Entertainment Group’s property, Star World Hotel. But in just two years, their business rapidly expanded to seven VIP rooms in most major casinos in Macau, offering 86 tables.
After witnessing China’s anti-corruption movement, Ji’s family shifted its focus to the overseas market. Ji and his mom bid for Saipan’s only casino license with a 40-year term in August 2014.
As required, Imperial Pacific International Holdings Limited was expected to invest at least $3.1 billion in the construction of the IPI resort and pay the local government an annual casino license fee of $15 million.
The IPI operated the casino under the temporary casino license. At that time, it operated nearly 48 gaming tables and 141 slot machines. IPI officially opened in July 2017, and the casino’s capacity increased to 77 gaming tables and 243 corner machines.
In its 2017 financial report, IPI reported a 75.7 percent year-on-year increase in revenue to HK$13.2 billion ($1.7 billion), of which 96.7 percent came from the VIP segment.
Suspension casino license
The Commonwealth of the Northern Mariana Islands’ Supreme Court confirmed the suspension of IPI’s exclusive casino license in August due to failures to pay its annual license fees since 2020.
IPI has also been investigated by the United States Department of Justice for money laundering in 2017. In 2019, the United States Department of Labor secured a $3.3 million judgment against IPI for wage and overtime violations. The Equal Employment Opportunity Commission filed a lawsuit against Imperial Pacific for sexual harassment and discrimination.
Due to financial struggles, IPI is also facing various winding-up petitions in Hong Kong, as the company is Hong Kong-listed.
Trading in IPI shares on the Stock Exchange has been suspended with effect from April 1st, 2022.
