Suspected loan sharks operating around B.C. casinos, documents say.

CBC News has obtained documents that show 33 cases of suspected loan sharking were reported around B.C.'s casinos in a two-and-a-half-year period from 2002 to 2004. The documents show that out of 33 cases of suspected loan sharking, police were called only three times. Instead, casinos often decided to hand out their own penalties — in one case barring a suspected loan shark for as little as one month. The documents from the provincial government's Gaming Policy and Enforcement Branch were obtained by the CBC after a four-year legal battle. They outline thousands of incidents of suspicious activities and large cash transactions in casinos, including allegations of loan sharking, money laundering and fraud. Garry Smith, a gambling researcher at the University of Alberta, said casinos may not have any motivation to crack down. "They benefit because the player who lost money is able to stay in action. If he gets another $5,000 to play, that's more money they'll eventually get from the player." The documents illustrate the extent of the problem. One man borrowed a staggering $110,000 from a loan shark at a B.C. casino, only to be forcefully thrown into a vehicle a few hours later, and told he owed $130,000. He paid the debt, but went to authorities for protection. The documents also show Rong Lily "Lilly" Lee, a suspected loan shark, was last seen alive outside Richmond's River Rock Casino in 2006.Police say she was the victim of a kidnapping and targeted hit. A man charged with her murder goes to trial next week. The B.C. Lottery Corp., which oversees casinos, insists combating loan sharking is a top priority. "Our policy on any criminal activity, including loan sharks, is zero tolerance. It's that simple," said Paul Smith of the BCLC.