Alan Dunch, the chairman of the Bermuda Casino Gaming Commission, has spoken out in defence of the organisation’s executive director, Richard Schuetz.

In a statement released yesterday afternoon, Mr Dunch said: “The commission deplores the fact that Richard has been the subject of disparaging comments based upon unsubstantiated, aged and unproven allegations, as well as innuendo.

“The commission makes no apology for speaking out on his behalf; it is the right and proper thing to do. Richard came to Bermuda to assist us in creating a new industry for the island, new job opportunities for our people and a new investment/tourism product. He did not come here to have his integrity, professionalism and reputation maligned.”

The statement comes after The Royal Gazette reported that a formal, sworn complaint against Mr Schuetz was filed with the state’s Fair Political Practices Commission in July last year, less than two months before he came to Bermuda to head up the publicly funded regulatory body. Jay Wierenga, the FPPC’s communications director, told this newspaper that the investigation was still under way.

Mr Schuetz had also come under fire in the House of Assembly over questions about the commission’s travel expenses and a visit to the island by representatives of Caesars Entertainment Corporation.

Responding to the issue of the complaint, Mr Dunch said that in July 2015, before he was hired by the commission, Mr Schuetz had notified him of the initial press release containing the allegations of an investigation into his travel expenses while working as the California State Gambling Control commissioner. Mr Dunch subsequently contacted officials in California about the issue.

“I discussed my findings with my fellow commissioners, and on the basis that all of my inquiries gave me no cause for concern, I entered into an employment contract on behalf of the commission with Mr Schuetz,” he said.

He questioned why a year-old story had resurfaced, suggesting that “a person or group with ulterior motives” was attempting to damage the integrity of both Mr Schuetz and the commission.

Mr Dunch noted that the commission and Mr Schuetz have been working with authorities locally and internationally about Bermuda businesses potentially operating in violation of US money-laundering statutes and had raised concerns about the “apparent absence of responsible and competent anti-money laundering controls” by those operating gaming products on the island.

He added that the commission had proposed the introduction of an anti-corruption measure that would limit the participation of employees and servants of the Government in the gaming sector.

“It is the belief of the commission that this is a common best practice of those gaming jurisdictions that are serious about offering a robust and efficient anti-money laundering regime,” he said. Mr Dunch concluded the statement saying that further releases will be made to address other issues raised in the media, and the commission will host a press conference to allow questions on the matter once the series of releases has concluded.