From Chelsea Phua:
A 26-year-old Red Hawk Casino dealer has been arrested for allegedly accepting counterfeit money knowing that the bills were fraudulent, authorities said.
Officials from the California Attorney General's office said Chi Yang (photo) of Carmichael and several accomplices defrauded the casino of about $3,000.
Yang was arrested shortly after midnight Friday and booked into the El Dorado County jail in Placerville on 10 counts of burglary, 10 counts of forgery, 10 counts of embezzlement and a conspiracy charge, authorities said.
Marty Horan, one of two assistant chiefs at the AG's Bureau of Gambling Control, said investigators plan to seek three more arrest warrants.
The investigation began in mid-June when the executive director of Red Hawk's tribal gaming agency reported the alleged fraud, Horan said.
Casino officials became suspicious when they discovered on a few occasions that a drop box from the Black Jack table where Chi Yang worked contained counterfeit $100 bills.
After reviewing the casino's reports and surveillance video footage, the bureau dispatched undercover agents to observe Chi Yang and his accomplices.
Agents noticed Chi Yang would receive two to five counterfeit bills at a time, hoping to avoid detection, Horan said.
The three-week long investigation also involved FBI agents.
If convicted of the counts, Horan said Yang could face at least five years in state prison.