PA: Crime and Corruption

Patte pleads guilty to illegal gambling charge

WILKES-BARRE - Prominent Wilkes-Barre restaurant/bar owner Patrick Patte Jr. pleaded guilty Monday to an illegal gambling charge that could send him to federal prison for six to 16 months.

Patte, 72, pleaded guilty to aiding and abetting the wire transmission of illegal gambling information. Under his plea agreement, he will pay $100,000 to keep the West Hollenback Avenue building that houses his business and residence from being seized by the federal government.

Prosecutors say payments related to an online betting ring were made at Patte's Sports Bar, which Patte has operated for 46 years.

Patte's attorneys acknowledged their client was involved in the gambling enterprise, but said he instructed his employees not to make payments at the bar.

"He gave specific instructions to everybody that there wasn't going to be any gambling at the bar," said defense attorney Michael Butera.

Assistant U.S. Attorney William Houser told the court that undercover agents had placed bets on the Internet site, collected winnings and paid losses as part of the investigation. A confidential informant had recorded conversations with Patte that "indicated Mr. Patte's clear involvement and knowledge of the operation," Houser said.

Patte's plea agreement calls for a prison sentence in the six-to-16-month range, but U.S. District Judge A. Richard Caputo is not bound by the agreement. The maximum penalty is two years in prison and a $250,000 fine.

Defense attorney William Ruzzo said he is "hopeful" Patte could receive a sentence of probation because of his work for charitable causes through events linked to the sports bar.

"I certainly could make a good argument for it," said Ruzzo, who characterized Patte as "a hard-working guy who does a lot of things in the community."

Patte was arrested nearly 20 years ago on state bookmaking charges and entered a probationary program for first-time offenders. That arrest will not be considered when computing Patte's federal sentence because so much time has elapsed and Patte successfully completed the program, his attorneys said.

Patte and two other men were arrested in February on the latest charges. Federal prosecutors say they seized between $80,000 and $90,000 and paper and electronic records connected to the operation from one of Patte's co-defendants, Christopher Marion, of Archbald. Marion and Mark Fino, an employee of Patte's Sports Bar, have pleaded guilty and been sentenced to two years probation.

A press release issued by the U.S. Attorney's Office in March linked the arrests of Marion and Fino to an ongoing public corruption probe that has snared more than 30 people, including three Luzerne County judges and a county commissioner, since January 2009, but federal prosecutors have declined to elaborate.

Patte's attorneys said Monday that they are not aware of any link.

"As far as I know, this has nothing to do with any ongoing corruption probe in Luzerne County," Ruzzo said.

Ruzzo said Patte has not, to his knowledge, cooperated in investigations into matters other than his own case.

"I don't think the government needs any cooperation from Mr. Patte," Ruzzo said.

During Monday's plea hearing, Houser, the federal prosecutor, read excerpts from Patte's plea agreement, which remains sealed under court order. Houser did not mention any agreement by Patte to cooperate in other investigations.

Attorneys from both sides declined comment on the contents of the sealed agreement.

One part of the agreement that has been made public is the $100,000 Patte will pay the federal government to keep the building that houses his business and residence from being seized because of its role in the gambling case.

Houser told the court prosecutors agreed to the payment because the building, assessed at $177,000 by the county, is subject to a $250,000 mortgage. The government estimated it would have lost $38,350 if it seized the building and had to settle the mortgage, Houser said.

Patte has already paid $40,000 and will make three annual $20,000 payments beginning in August.

He remains free on his own recognizance pending his sentencing on Jan. 5.