Former Brentwood official admits stealing $30,000 for gambling
BY ROBERT PATRICK AND PAUL HAMPEL
STLtoday.com
BRENTWOOD • Former Brentwood city administrator Christopher A. Seemayer admitted Wednesday in federal court that he embezzled almost $30,000 from the municipality since Jan. 1, 2010, and gambled it away.
Officials discovered the theft after Brentwood's credit union called to ask why cash advances were being made on a city credit card at the Casino Queen.
Seemayer tried to pay the money back, lawyers said, by sending personal checks to cover the losses.
Mayor Pat Kelly said he met with Seemayer on the day he learned about the missing money. "He said he was sorry, and that was the only comment he made to me," Kelly said. The mayor placed Seemayer on administrative leave, and the accused official quit two days later, on March 11.
Defense lawyers Ron Jenkins and Michael McAvoy said their client will repay all the money on the day he is sentenced, Sept. 14.
Under federal guidelines, Seemayer faces six months to a year in prison for the two charges of federal program fraud. In 2010, at least some of the money Seemayer took came from a FEMA grant, and in 2011, the money came from grants from the Department of Justice and National Highway Traffic Safety Administration.
In court in St. Louis, Seemayer told U.S. District Judge Catherine Perry that he had been treated for a gambling addiction.
Seemayer, 52, of Fenton, had been Brentwood's city administrator since 1992. Prior to that, he worked as Fenton's administrative assistant.
"When I first found out about it, I was kind of shaking," the mayor said. "Chris was the chief financial officer of the city, and a lot of people had faith in his experience and trusted him."
Kelly said Brentwood is working to improve its internal procedures to prevent theft.
Thursday, June 30, 2011
Gambling Addict Antoine Walker pleads guilty to casino debts
Antoine Walker pleads guilty to casino debts
Former University of Kentucky and NBA star Antoine Walker has pleaded guilty to passing bad checks in the form of unpaid gambling debts in Las Vegas.
The Las Vegas Sun reported the former all-star who now plays for the NBA Development League's Idaho Stampede will be put on probation and work toward paying off $750,000.
The criminal complaint against Walker was filed in 2009, accusing him of having the debts at Caesars Palace and Red Rock.
Walker won an NBA title in 2006 with the Miami Heat.
Former University of Kentucky and NBA star Antoine Walker has pleaded guilty to passing bad checks in the form of unpaid gambling debts in Las Vegas.
The Las Vegas Sun reported the former all-star who now plays for the NBA Development League's Idaho Stampede will be put on probation and work toward paying off $750,000.
The criminal complaint against Walker was filed in 2009, accusing him of having the debts at Caesars Palace and Red Rock.
Walker won an NBA title in 2006 with the Miami Heat.
Illinois GOP not in favor of casino
Guest Column: Illinois GOP not in favor of casino
By Jan Klaas
SPECIAL TO RRSTAR.COM Rockford Register Star
As chairman of the Winnebago County Republican Party, I want to inform the Rockford community that Illinois Republicans voted to oppose gambling expansion at our last state convention in 2008. The Illinois Republican platform states:
“We call on the Governor and General Assembly to balance the state budget and provide for a responsible capital development program without resorting to the expansion of gambling, which harms Illinois’ families and our state’s business climate and presents costly challenges for both law enforcement and social service agencies.”
Although a few Republican elected officials support gambling expansion, the majority of local and state Republicans oppose this effort. Let me share some information about gambling that the pro-casino forces have conveniently ignored.
Over the last two decades there has been a significant compilation of data, known as the United States International Gambling Report, which exposes the truth about gambling. The report confirmed that the cost of legalizing gambling to the taxpayers is at least three dollars for every dollar in theoretical benefits.
John Kindt, professor of business and legal policy at the University of Illinois, was a leader in this effort. Kindt warns, “The United States and the international economies are headed in the wrong direction thinking that gambling will help them. It’s Economics 101 that you cannot gamble your way to prosperity. But you can gamble your way into more recessions and even depression.”
Additional research shows that gambling does not solve problems; instead it creates problems for a community. Consider these facts:
Counties having at least one gambling establishment averaged 18 percent more bankruptcies than those counties without gambling.
Problem gambling and addiction rates DOUBLE within a 50 mile radius of a casino.
Casinos increase crimes such as rape, robbery, aggravated assault and burglary.
Numerous studies show that gambling is sapping the economic vitality out of the U.S. economy. Instead of creating new wealth, it extracts existing wealth because it is a business based on people losing money.
On the other hand, through traditional revenue streams, the government invests in infrastructure so individuals and businesses see their incomes and property values increase. As income and property values increase, so will revenues to the government. Americans must return to the basics of saving more, reducing our debt, strengthening our families and inventing more products and services to export.
Chuck Sweeny’s column June 26 pokes fun at “anti-gambling moralists of the far right and far left” because he senses that we have little support.
First, let me say that I am proud to work alongside local Democrats like Stanley Campbell and the Rev. Mike Solberg to protect people from the negative effects of predatory gambling. Sen. Dick Durbin recently said, “Most people who go into casinos are poor and elderly people who lose money that they can’t afford to lose. I am really saddened that we’ve reached a point in Illinois where that is a major source of revenue in our state.” I agree with Sen. Durbin!
Second, a moralist is defined as a person concerned with regulating morals. It seems that Sweeny and pro-casino leaders are pushing their morals on this community. They choose to ignore the economic and social consequences of gambling, but I will not. Legislation always reflects someone’s morals. The question is, whose morals do we want reflected in the laws and policies of our community?
Finally, Sweeny thinks gambling expansion opponents have little support. Every day I meet people opposed to a Rockford casino. Chuck needs to do a little more research.
Let’s send a message to Gov. Quinn’s office that Rockford does NOT want a casino!
Jan Klaas is chairman of the Winnebago County Republican Party
By Jan Klaas
SPECIAL TO RRSTAR.COM Rockford Register Star
As chairman of the Winnebago County Republican Party, I want to inform the Rockford community that Illinois Republicans voted to oppose gambling expansion at our last state convention in 2008. The Illinois Republican platform states:
“We call on the Governor and General Assembly to balance the state budget and provide for a responsible capital development program without resorting to the expansion of gambling, which harms Illinois’ families and our state’s business climate and presents costly challenges for both law enforcement and social service agencies.”
Although a few Republican elected officials support gambling expansion, the majority of local and state Republicans oppose this effort. Let me share some information about gambling that the pro-casino forces have conveniently ignored.
Over the last two decades there has been a significant compilation of data, known as the United States International Gambling Report, which exposes the truth about gambling. The report confirmed that the cost of legalizing gambling to the taxpayers is at least three dollars for every dollar in theoretical benefits.
John Kindt, professor of business and legal policy at the University of Illinois, was a leader in this effort. Kindt warns, “The United States and the international economies are headed in the wrong direction thinking that gambling will help them. It’s Economics 101 that you cannot gamble your way to prosperity. But you can gamble your way into more recessions and even depression.”
Additional research shows that gambling does not solve problems; instead it creates problems for a community. Consider these facts:
Counties having at least one gambling establishment averaged 18 percent more bankruptcies than those counties without gambling.
Problem gambling and addiction rates DOUBLE within a 50 mile radius of a casino.
Casinos increase crimes such as rape, robbery, aggravated assault and burglary.
Numerous studies show that gambling is sapping the economic vitality out of the U.S. economy. Instead of creating new wealth, it extracts existing wealth because it is a business based on people losing money.
On the other hand, through traditional revenue streams, the government invests in infrastructure so individuals and businesses see their incomes and property values increase. As income and property values increase, so will revenues to the government. Americans must return to the basics of saving more, reducing our debt, strengthening our families and inventing more products and services to export.
Chuck Sweeny’s column June 26 pokes fun at “anti-gambling moralists of the far right and far left” because he senses that we have little support.
First, let me say that I am proud to work alongside local Democrats like Stanley Campbell and the Rev. Mike Solberg to protect people from the negative effects of predatory gambling. Sen. Dick Durbin recently said, “Most people who go into casinos are poor and elderly people who lose money that they can’t afford to lose. I am really saddened that we’ve reached a point in Illinois where that is a major source of revenue in our state.” I agree with Sen. Durbin!
Second, a moralist is defined as a person concerned with regulating morals. It seems that Sweeny and pro-casino leaders are pushing their morals on this community. They choose to ignore the economic and social consequences of gambling, but I will not. Legislation always reflects someone’s morals. The question is, whose morals do we want reflected in the laws and policies of our community?
Finally, Sweeny thinks gambling expansion opponents have little support. Every day I meet people opposed to a Rockford casino. Chuck needs to do a little more research.
Let’s send a message to Gov. Quinn’s office that Rockford does NOT want a casino!
Jan Klaas is chairman of the Winnebago County Republican Party
Bingo corruption tral: McGregor frustrated with Governor's task force
Bingo corruption tral: McGregor frustrated with Governor's task force
By: Lance Griffin
5:40 p.m. -- During one conversation with Sen. Quinton Ross, Milton McGregor expressed frustration toward then-Governor Bob Riley and his task force on illegal gambling.
“It’s like something you would expect 60 years ago in Nazi Germany,” said McGregor, whose casino had been closed after a task force raid. “He turned his back on Alabama and come back on us after we’ve been in business 26 years and had bingo seven.”
During the same conversation with Ross, one day before the senate’s bingo vote, Ross asks McGregor for campaign support.
Ross: “I appreciate what you’ve done with the help you’ve given me. I … actually calling to see if I can get some more help. I definitely, if you know, if you can give me some more help, that would help me out tremendously. When we get an opportunity, we can talk off line.”
McGregor attorney Ben Espy began his cross examination late Thursday afternoon by asking McEachern about the credibility of Gilley.
“Do you think Ronnie Gilley is an honest, honorable person?” Espy asked.
“I believe he has come forward and told the truth to us,” McEachern said.
3:15 p.m. – Wiretapped phone conversations indicate VictoryLand owner Milton McGregor was on the phone almost constantly leading up to March 23, 2010, when Senate leaders had hoped to make another run at a vote on bingo legislation.
Government prosecutors played several recorded conversation between McGregor and others prior to March 23, as McGregor frantically urged others to ‘work’ senators in an effort to secure their bingo vote.
“I have more invested than Gilley and Greene(track) and Lowndes (White Hall) all put together,” McGregor is heard saying during a March 22 phone call with co-defendant Robert Geddie.
During several different conversations, McGregor urges Geddie, lobbyist Tom Coker and others to reach out to various senators including Jim Preuitt, Charles Bishop, Ben Brooks, Bobby Denton, and Paul Sanford.
During one conversation with Coker, McGregor indicates that country music singer Randy Owen had been told that Bishop was a ‘yes’ vote on bingo. McGregor said Owen told that to Ronnie Gilley.
“He told Ronnie, he said ‘I have got a blood oath.’ That is the word he used,” McGregor told Coker.
During another March 22 conversation between McGregor and Coker, McGregor indicates Preuitt may be the 21st vote needed to pass the bill in the Senate. He urges Coker to press Preuitt for a ‘yes’ vote.
“I think your major assignment today ought to be to try to close the deal on Preuitt. I think you ought to just let him know,” McGregor tells Coker.
12:01 p.m. – FBI agent John McEachern is commenting on recorded conversations between Milton McGregor, lobbyist Tom Coker and Alabama Education Association Director Dr. Paul Hubbert.
During one conversation between McGregor and Coker, McGregor tells Coker that Sen. Jim Preuitt is inclined to vote for the bingo bill if McGregor can convince Hubbert to remain neutral in Preuitt’s next election.
“This is what he wanted us to do. He said considering how much money Hubbert and his organization is going to get out of our proposal, all I want Hubbert to do is tell me he will be neutral, that he won’t come after me,” McGregor tells Coker on March 16, 2010.
In a later call March 16, 2010, Hubbert tells McGregor he will consider Preuitt’s request.
“I’ve been focused on the budget,” Hubbert tells McGregor. “I haven’t thought about a lot else. Let me call him (Coker) later.”
McGregor expresses his urgency to Hubbert in wanting to see the bill passed.
“This ain’t a luxury bill for Milton. This is survival. My livelihood depends on this bill,” McGregor tells Hubbert.
11:16 a.m. – After court workers established audio in the media room at 10 a.m., FBI Special Agent John McEachern commented on several audio recordings of conversations between Milton McGregor and legislative analyst Ray Crosby.
The conversations take place March 12 and March 13 2010, nine days after a failed procedural vote that would have allowed the Senate to vote on SB380, the electronic bingo legislation in the Alabama Legislature.
Most of the conversations focus on language in the bill. At this time, bingo bill supporters do not have the necessary votes to pass the legislation in the Senate.
During the conversations, McGregor tells Crosby to write the bill in a way that guarantees 5 percent of the proposed 25 percent tax on casino revenue to all counties in Alabama.
“All of us feel like it is imperative you get the language changed to make it crystal clear that the five you added stays with the counties,” McGregor tells Crosby in a March 12, 2010 conversation. “Been working certain legislators pointing that out.”
McGregor also tells Crosby he wants language in the bill that will reduce the time necessary to appoint a gaming commission from 120 days to 60 days, in order for the casinos to open quicker.
McGregor then asks Crosby to fax him the new bill so that he can distribute it to Greenetrack owner Nat Winn, Ronnie Gilley and lobbyists Joe Fine and Robert Geddie.
During this time. McGregor has been paying Crosby $3,000 per month. McGregor acknowledged the payments, but Crosby did not acknowledge the payments in any of his filings of economic interest to the State Ethics Commission until after word of the FBI vote-buying investigation was made public.
In a March 13 conversation between lobbyist Tom Coker and McGregor, Coker suggests raising the casino tax in an attempt to gain more votes in the Senate.
Coker: “(Senator Paul) Sanford and (Senator Ben) Brooks have made mention of a higher tax.”
McGregor: “We ain’t gonna pay no higher tax. I can promise you now that can’t happen. The numbers don’t work,” McGregor said.
9:12 p.m. – John McEachern has begun testifying Thursday morning. The audio feed to the media room has failed. We may be required to be in the courtroom if we want to hear the trial. No electronic equipment is allowed in the courtroom, so tweets and blog updates will be sporadic.
8:36 a.m. – Testimony is set to begin at 9 a.m. with FBI Special Agent John McEachern on the stand. The prosecution said yesterday it plans to introduce 32 wiretapped conversations through McEachern.
Prosecutors said they hoped to conclude direct examination of McEachern by lunch. That is optimistic based on the number of conversations that still must be introduced.
By: Lance Griffin
5:40 p.m. -- During one conversation with Sen. Quinton Ross, Milton McGregor expressed frustration toward then-Governor Bob Riley and his task force on illegal gambling.
“It’s like something you would expect 60 years ago in Nazi Germany,” said McGregor, whose casino had been closed after a task force raid. “He turned his back on Alabama and come back on us after we’ve been in business 26 years and had bingo seven.”
During the same conversation with Ross, one day before the senate’s bingo vote, Ross asks McGregor for campaign support.
Ross: “I appreciate what you’ve done with the help you’ve given me. I … actually calling to see if I can get some more help. I definitely, if you know, if you can give me some more help, that would help me out tremendously. When we get an opportunity, we can talk off line.”
McGregor attorney Ben Espy began his cross examination late Thursday afternoon by asking McEachern about the credibility of Gilley.
“Do you think Ronnie Gilley is an honest, honorable person?” Espy asked.
“I believe he has come forward and told the truth to us,” McEachern said.
3:15 p.m. – Wiretapped phone conversations indicate VictoryLand owner Milton McGregor was on the phone almost constantly leading up to March 23, 2010, when Senate leaders had hoped to make another run at a vote on bingo legislation.
Government prosecutors played several recorded conversation between McGregor and others prior to March 23, as McGregor frantically urged others to ‘work’ senators in an effort to secure their bingo vote.
“I have more invested than Gilley and Greene(track) and Lowndes (White Hall) all put together,” McGregor is heard saying during a March 22 phone call with co-defendant Robert Geddie.
During several different conversations, McGregor urges Geddie, lobbyist Tom Coker and others to reach out to various senators including Jim Preuitt, Charles Bishop, Ben Brooks, Bobby Denton, and Paul Sanford.
During one conversation with Coker, McGregor indicates that country music singer Randy Owen had been told that Bishop was a ‘yes’ vote on bingo. McGregor said Owen told that to Ronnie Gilley.
“He told Ronnie, he said ‘I have got a blood oath.’ That is the word he used,” McGregor told Coker.
During another March 22 conversation between McGregor and Coker, McGregor indicates Preuitt may be the 21st vote needed to pass the bill in the Senate. He urges Coker to press Preuitt for a ‘yes’ vote.
“I think your major assignment today ought to be to try to close the deal on Preuitt. I think you ought to just let him know,” McGregor tells Coker.
12:01 p.m. – FBI agent John McEachern is commenting on recorded conversations between Milton McGregor, lobbyist Tom Coker and Alabama Education Association Director Dr. Paul Hubbert.
During one conversation between McGregor and Coker, McGregor tells Coker that Sen. Jim Preuitt is inclined to vote for the bingo bill if McGregor can convince Hubbert to remain neutral in Preuitt’s next election.
“This is what he wanted us to do. He said considering how much money Hubbert and his organization is going to get out of our proposal, all I want Hubbert to do is tell me he will be neutral, that he won’t come after me,” McGregor tells Coker on March 16, 2010.
In a later call March 16, 2010, Hubbert tells McGregor he will consider Preuitt’s request.
“I’ve been focused on the budget,” Hubbert tells McGregor. “I haven’t thought about a lot else. Let me call him (Coker) later.”
McGregor expresses his urgency to Hubbert in wanting to see the bill passed.
“This ain’t a luxury bill for Milton. This is survival. My livelihood depends on this bill,” McGregor tells Hubbert.
11:16 a.m. – After court workers established audio in the media room at 10 a.m., FBI Special Agent John McEachern commented on several audio recordings of conversations between Milton McGregor and legislative analyst Ray Crosby.
The conversations take place March 12 and March 13 2010, nine days after a failed procedural vote that would have allowed the Senate to vote on SB380, the electronic bingo legislation in the Alabama Legislature.
Most of the conversations focus on language in the bill. At this time, bingo bill supporters do not have the necessary votes to pass the legislation in the Senate.
During the conversations, McGregor tells Crosby to write the bill in a way that guarantees 5 percent of the proposed 25 percent tax on casino revenue to all counties in Alabama.
“All of us feel like it is imperative you get the language changed to make it crystal clear that the five you added stays with the counties,” McGregor tells Crosby in a March 12, 2010 conversation. “Been working certain legislators pointing that out.”
McGregor also tells Crosby he wants language in the bill that will reduce the time necessary to appoint a gaming commission from 120 days to 60 days, in order for the casinos to open quicker.
McGregor then asks Crosby to fax him the new bill so that he can distribute it to Greenetrack owner Nat Winn, Ronnie Gilley and lobbyists Joe Fine and Robert Geddie.
During this time. McGregor has been paying Crosby $3,000 per month. McGregor acknowledged the payments, but Crosby did not acknowledge the payments in any of his filings of economic interest to the State Ethics Commission until after word of the FBI vote-buying investigation was made public.
In a March 13 conversation between lobbyist Tom Coker and McGregor, Coker suggests raising the casino tax in an attempt to gain more votes in the Senate.
Coker: “(Senator Paul) Sanford and (Senator Ben) Brooks have made mention of a higher tax.”
McGregor: “We ain’t gonna pay no higher tax. I can promise you now that can’t happen. The numbers don’t work,” McGregor said.
9:12 p.m. – John McEachern has begun testifying Thursday morning. The audio feed to the media room has failed. We may be required to be in the courtroom if we want to hear the trial. No electronic equipment is allowed in the courtroom, so tweets and blog updates will be sporadic.
8:36 a.m. – Testimony is set to begin at 9 a.m. with FBI Special Agent John McEachern on the stand. The prosecution said yesterday it plans to introduce 32 wiretapped conversations through McEachern.
Prosecutors said they hoped to conclude direct examination of McEachern by lunch. That is optimistic based on the number of conversations that still must be introduced.
DOES THE ALCOHOLIC BEVERAGE CONTROL (ABC) HOLD INDIAN CASINOS TO DIFFERENT STANDARDS?
The comments below raise pertinent issues about ALCOHOL consumption on Sovereign land.
In Connecticut, Foxwoods and Mohegan Sun have created comparable situations by allowing intoxicated patrons who have consumed FREE ALCOHOL on the premises to depart, making innocent people targets.
A few entries:
Mohegan Sun and Foxwoods: DUIs
Massachusetts House Speaker DeLeo jeopardizes public safety
Drunks: DeLeo jeopardizes safety of public for Gambling Industry
What we know is:
Drunken Driving Fatalities and Accidents Increase: Foxwoods and Mohegan Sun have at least 50% more OUI arrests than any other State Police troop in CT. Drunken driving related fatalities almost doubled in the area during 2009 vs. 2008 because the casino revenue to the state decreased leading to budget cuts in police force.
Before “Happy Hours” were outlawed in Massachusetts in 1984, there were 411 drunken driving related fatalities compared to only 151 in 2008.
Casinos in Massachusetts will have Happy Hours 24/7/365!!!
Or the case in New Mexico:
Sovereignty as Protection from consequences
Shouldn't we be asking why Tribal Slot Barns are held to a different standard? If your family member were killed by a drunken patron of a Tribal Slot Barn, wouldn't you be asking?
DOES THE ALCOHOLIC BEVERAGE CONTROL (ABC) HOLD INDIAN CASINOS TO DIFFERENT STANDARDS?
By Kathy Cleary, Guest Columnist
On July 5, the Board of Supervisors will be discussing the Santa Ynez Band of Mission Indian’s application for expansion of alcohol sales at the Chumash Casino and Resort. Last year the Alcoholic Beverage Control (ABC) granted a temporary permit for this expansion, allowing the expansion of alcohol sales while they reviewed the protests filed by the public, sheriff and Board of Supervisors.
There have been numerous oddities about this ABC review process. First of all, I found out that the Sheriff’s Department had not been sending the ABC alcohol and drug arrest reports, as was required by law. I informed the sheriff and the ABC. They now state that this has been corrected and ABC is receiving arrest reports.
Secondly, there was a “miscommunication” between the county’s Chief Executive Officer (CEO) and an ABC investigator, who told me that the sheriff and CEO had dropped their protests. When I asked Supervisor Doreen Farr, she said this was not her understanding. The ABC investigator disagreed with Supervisor Farr and told me that I needed to contact the sheriff and CEO to find out if they dropped their protests. I did this and later received an email from the ABC investigator saying there was a miscommunication; he should have said it was anticipated that they were going to drop their protests.
He also said it appeared that the ABC would approve this permit. When questioned about how this permit could be approved given more than 1,400 arrest reports, he explained that although there are hundreds of documented incidences of alcohol and drug -related crimes, the licensee (Santa Ynez Band) can only be held accountable for incidences related to the licensed portions of the facilities. In other words, the hundreds of drug deals and drunken arrests made in the parking lot, or in the casino or hotel, may have been because casinos draw drug dealers and users and drunks, versus there being a problem with the Willows Restaurant or other licensed areas that sell alcohol. (To see the crime reports, go to: http://www.santaynezvalleyjournal.com/archive/9/14/8170/.)
I then requested full copies of a sampling of police reports. After reading these reports, it appeared to me that the police may not be attempting, or be able to uncover where the drunk got drunk. After reviewing these reports, it is not surprising that this could be difficult. For example, in one report a female and male patron were involved – the following is from the report: The male kicked a casino sliding door, then said to casino security, “You want to fight me?” Then, “they all went to the ground,” security ended up “scratched in the process,” the female patron’s behavior “was rapidly escalating and becoming violent in nature,” she was placed in the patrol car, the male patron and security then “locked up and went to the ground,” and when on the ground the patron “bit security on the left side of his mid-section.” The wound “was approximately 1.5 inches in diameter...and was red and open.” In addition, the security guard “received scratches on his neck.” While this was happening, the deputy was having difficulty with the female patron in his patrol car, who was “kicking the windows of the squad car with her feet.”
This is just one example. Given the nature of the arrest reports that includes alcohol, heroin and guns, among many other things, this is obviously a complicated situation.
Another recent call to a different ABC investigator confirmed that the licensee (Santa Ynez Band) could only be held accountable for the licensed location, and not people who had arrived drunk or drugged up, or had been partying it up in the hotel, parking lot, restrooms or bushes for that matter. The investigator said that he did not know if the police had any mechanism to determine where the drunk got drunk.
This brings up a number of questions: It appears that determining where a drunk gets drunk is virtually impossible at the Chumash Casino and Resort because of its size. If this review of alcohol expansion is really an honest attempt to protect the public health, welfare, safety and morality, how is this going to be corrected? 1. The Sheriff’s Department is already stretched to the limit. Do they have the manpower hours to track down where a drunk gets drunk?
2. The Chumash Casino and Resort is absolutely not motivated to track this down, as it would jeopardize their license. Would this impede any attempts of getting this information?
3. Why didn’t the ABC figure out the police were not sending the crime reports, and the virtual impossibility of determining where the drunk gets drunk? Is this just a shuffling of paper, as it appears to be? In this case is the ABC doing anything really meaningful?
4. If patrons arrived drunk to the wine-tasting rooms, or partied it up in the parking lot, and the police were called and those patrons were arrested for drunkenness, and this happened hundreds of times, I think it is safe to say that the ABC couldn’t care less if they arrived drunk. They would shut down that wine-tasting room, and maybe all of them. However, the Chumash Casino and Resort owners are not held accountable for drunken behavior and arrests. Is the casino being held to different standards because it is an Indian casino? When is a non-Indian business owner going to notice the different standards and claim discrimination? 5. If the ABC is not overseeing the non-licensed portions of the casino and resort, who is?
Kathy Cleary is president of Preservation of Los Olivos, P.O.L.O., a grass-roots citizens’ group. Visit www.polosyv.org
CRIME ON LAND IN FEDERAL TRUST
By SYVJ Staff
Land held in federal "trust" for a tribal government, and the businesses and activity on land in trust, function outside local and state jurisdiction, and taxation rules, applicable to all other Americans. Decision making by government entities regarding businesses and activity on land in trust appears to be different. The United States Constitution does not apply on land in federal "trust." Tribal governments have their own tribal constitutions. Communities are being harmed by tribal governments that impact them, but these tribal governments have no accountability to them. Casino tribal governments are often very aggressive in expansion of land and authority.
The following crime reports document quantity and the type of crime that occurs on land held in federal "trust." In one example of different decision making for businesses on land in trust, the Alcoholic Beverage Control (having been provided with these crime reports) is moving forward with expansion of alcohol sales at the Chumash Casino. In addition, the Sheriff's Department has chosen to do no investigations (other than responding and writing the reports). Any other business with this level of criminal activity would, in all likelihood, not have been allowed to expand sales of alcohol, and possibly would have been penalized and/or shut down.
Below please find copies of reports written on land in trust at the Chumash Casino and Resort.
Click on Chumash Crime Report Introduction, 5 pages link to view as pdf
Click on Chumash Crime Report for January 2011, 13 pages link to view as pdf
Click on Chumash Crime Report for 2010, 157 pages link to view as pdf
[There is an extensive list of Crime Reports. Click on LINK to review them all.]
In Connecticut, Foxwoods and Mohegan Sun have created comparable situations by allowing intoxicated patrons who have consumed FREE ALCOHOL on the premises to depart, making innocent people targets.
A few entries:
Mohegan Sun and Foxwoods: DUIs
Massachusetts House Speaker DeLeo jeopardizes public safety
Drunks: DeLeo jeopardizes safety of public for Gambling Industry
What we know is:
Drunken Driving Fatalities and Accidents Increase: Foxwoods and Mohegan Sun have at least 50% more OUI arrests than any other State Police troop in CT. Drunken driving related fatalities almost doubled in the area during 2009 vs. 2008 because the casino revenue to the state decreased leading to budget cuts in police force.
Before “Happy Hours” were outlawed in Massachusetts in 1984, there were 411 drunken driving related fatalities compared to only 151 in 2008.
Casinos in Massachusetts will have Happy Hours 24/7/365!!!
Or the case in New Mexico:
Sovereignty as Protection from consequences
Shouldn't we be asking why Tribal Slot Barns are held to a different standard? If your family member were killed by a drunken patron of a Tribal Slot Barn, wouldn't you be asking?
DOES THE ALCOHOLIC BEVERAGE CONTROL (ABC) HOLD INDIAN CASINOS TO DIFFERENT STANDARDS?
By Kathy Cleary, Guest Columnist
On July 5, the Board of Supervisors will be discussing the Santa Ynez Band of Mission Indian’s application for expansion of alcohol sales at the Chumash Casino and Resort. Last year the Alcoholic Beverage Control (ABC) granted a temporary permit for this expansion, allowing the expansion of alcohol sales while they reviewed the protests filed by the public, sheriff and Board of Supervisors.
There have been numerous oddities about this ABC review process. First of all, I found out that the Sheriff’s Department had not been sending the ABC alcohol and drug arrest reports, as was required by law. I informed the sheriff and the ABC. They now state that this has been corrected and ABC is receiving arrest reports.
Secondly, there was a “miscommunication” between the county’s Chief Executive Officer (CEO) and an ABC investigator, who told me that the sheriff and CEO had dropped their protests. When I asked Supervisor Doreen Farr, she said this was not her understanding. The ABC investigator disagreed with Supervisor Farr and told me that I needed to contact the sheriff and CEO to find out if they dropped their protests. I did this and later received an email from the ABC investigator saying there was a miscommunication; he should have said it was anticipated that they were going to drop their protests.
He also said it appeared that the ABC would approve this permit. When questioned about how this permit could be approved given more than 1,400 arrest reports, he explained that although there are hundreds of documented incidences of alcohol and drug -related crimes, the licensee (Santa Ynez Band) can only be held accountable for incidences related to the licensed portions of the facilities. In other words, the hundreds of drug deals and drunken arrests made in the parking lot, or in the casino or hotel, may have been because casinos draw drug dealers and users and drunks, versus there being a problem with the Willows Restaurant or other licensed areas that sell alcohol. (To see the crime reports, go to: http://www.santaynezvalleyjournal.com/archive/9/14/8170/.)
I then requested full copies of a sampling of police reports. After reading these reports, it appeared to me that the police may not be attempting, or be able to uncover where the drunk got drunk. After reviewing these reports, it is not surprising that this could be difficult. For example, in one report a female and male patron were involved – the following is from the report: The male kicked a casino sliding door, then said to casino security, “You want to fight me?” Then, “they all went to the ground,” security ended up “scratched in the process,” the female patron’s behavior “was rapidly escalating and becoming violent in nature,” she was placed in the patrol car, the male patron and security then “locked up and went to the ground,” and when on the ground the patron “bit security on the left side of his mid-section.” The wound “was approximately 1.5 inches in diameter...and was red and open.” In addition, the security guard “received scratches on his neck.” While this was happening, the deputy was having difficulty with the female patron in his patrol car, who was “kicking the windows of the squad car with her feet.”
This is just one example. Given the nature of the arrest reports that includes alcohol, heroin and guns, among many other things, this is obviously a complicated situation.
Another recent call to a different ABC investigator confirmed that the licensee (Santa Ynez Band) could only be held accountable for the licensed location, and not people who had arrived drunk or drugged up, or had been partying it up in the hotel, parking lot, restrooms or bushes for that matter. The investigator said that he did not know if the police had any mechanism to determine where the drunk got drunk.
This brings up a number of questions: It appears that determining where a drunk gets drunk is virtually impossible at the Chumash Casino and Resort because of its size. If this review of alcohol expansion is really an honest attempt to protect the public health, welfare, safety and morality, how is this going to be corrected? 1. The Sheriff’s Department is already stretched to the limit. Do they have the manpower hours to track down where a drunk gets drunk?
2. The Chumash Casino and Resort is absolutely not motivated to track this down, as it would jeopardize their license. Would this impede any attempts of getting this information?
3. Why didn’t the ABC figure out the police were not sending the crime reports, and the virtual impossibility of determining where the drunk gets drunk? Is this just a shuffling of paper, as it appears to be? In this case is the ABC doing anything really meaningful?
4. If patrons arrived drunk to the wine-tasting rooms, or partied it up in the parking lot, and the police were called and those patrons were arrested for drunkenness, and this happened hundreds of times, I think it is safe to say that the ABC couldn’t care less if they arrived drunk. They would shut down that wine-tasting room, and maybe all of them. However, the Chumash Casino and Resort owners are not held accountable for drunken behavior and arrests. Is the casino being held to different standards because it is an Indian casino? When is a non-Indian business owner going to notice the different standards and claim discrimination? 5. If the ABC is not overseeing the non-licensed portions of the casino and resort, who is?
Kathy Cleary is president of Preservation of Los Olivos, P.O.L.O., a grass-roots citizens’ group. Visit www.polosyv.org
CRIME ON LAND IN FEDERAL TRUST
By SYVJ Staff
Land held in federal "trust" for a tribal government, and the businesses and activity on land in trust, function outside local and state jurisdiction, and taxation rules, applicable to all other Americans. Decision making by government entities regarding businesses and activity on land in trust appears to be different. The United States Constitution does not apply on land in federal "trust." Tribal governments have their own tribal constitutions. Communities are being harmed by tribal governments that impact them, but these tribal governments have no accountability to them. Casino tribal governments are often very aggressive in expansion of land and authority.
The following crime reports document quantity and the type of crime that occurs on land held in federal "trust." In one example of different decision making for businesses on land in trust, the Alcoholic Beverage Control (having been provided with these crime reports) is moving forward with expansion of alcohol sales at the Chumash Casino. In addition, the Sheriff's Department has chosen to do no investigations (other than responding and writing the reports). Any other business with this level of criminal activity would, in all likelihood, not have been allowed to expand sales of alcohol, and possibly would have been penalized and/or shut down.
Below please find copies of reports written on land in trust at the Chumash Casino and Resort.
Click on Chumash Crime Report Introduction, 5 pages link to view as pdf
Click on Chumash Crime Report for January 2011, 13 pages link to view as pdf
Click on Chumash Crime Report for 2010, 157 pages link to view as pdf
[There is an extensive list of Crime Reports. Click on LINK to review them all.]
Delilah: 'I'm facing homelessness'
Delilah: 'I'm facing homelessness'
By Rebecca Davies, Entertainment Reporter
Delilah has revealed that she is facing homelessness.
The Australian entertainer, who has worked with stars such as Frank Sinatra, Cher and Dean Martin, said that she lost most of her fortune to a gambling addiction and has also struggled financially since the death of her partner Ian Black last year.
Delilah told New Idea magazine: "I've definitely hit rock bottom and if it wasn't for the kindness of close friends helping me out in all sorts of ways, God knows how I'd have survived.
"I've always stood tall and been an extremely proud person, so when I first [needed] help with my bills, I was mortified. But... there are many in my shoes or worse, including other well-known showbiz people.
"I'm a firm believer in destiny and what's meant to be and the universe working things out for you, but right now it's a terrifying prospect to have nowhere to live, to be in limbo and to have very little money to make a move anyway."
By Rebecca Davies, Entertainment Reporter
Delilah has revealed that she is facing homelessness.
The Australian entertainer, who has worked with stars such as Frank Sinatra, Cher and Dean Martin, said that she lost most of her fortune to a gambling addiction and has also struggled financially since the death of her partner Ian Black last year.
Delilah told New Idea magazine: "I've definitely hit rock bottom and if it wasn't for the kindness of close friends helping me out in all sorts of ways, God knows how I'd have survived.
"I've always stood tall and been an extremely proud person, so when I first [needed] help with my bills, I was mortified. But... there are many in my shoes or worse, including other well-known showbiz people.
"I'm a firm believer in destiny and what's meant to be and the universe working things out for you, but right now it's a terrifying prospect to have nowhere to live, to be in limbo and to have very little money to make a move anyway."
Sentencing set for former Vermont state worker in $490,000 embezzlement
Sentencing set for former Vermont state worker in $490,000 embezzlement
RUTLAND, Vt. — A former state Department for Children and Families supervisor who says she has a gambling addiction is being sentenced for her role in a $490,000 embezzlement scheme.
Forty-seven-year-old Kathy Lantagne, of Charleston, got the state to issue more than 250 checks that she and her sister then cashed, keeping the proceeds. She pleaded guilty in March to mail fraud, theft from a program that receives federal funds and filing a false tax return.
She's being sentenced Thursday in federal court in Rutland.
RUTLAND, Vt. — A former state Department for Children and Families supervisor who says she has a gambling addiction is being sentenced for her role in a $490,000 embezzlement scheme.
Forty-seven-year-old Kathy Lantagne, of Charleston, got the state to issue more than 250 checks that she and her sister then cashed, keeping the proceeds. She pleaded guilty in March to mail fraud, theft from a program that receives federal funds and filing a false tax return.
She's being sentenced Thursday in federal court in Rutland.
Gilley testimony continues in federal corruption trial
Gilley testimony continues in federal corruption trial
DAVID GOODWIN Political Editor
Country Crossing developer Ronnie Gilley endured his fourth day of testimony Tuesday in the corruption trial of his nine former co-defendants, including former area lawmaker Jim Preuitt and VictoryLand owner Milton McGregor.
In his testimony, he named legislators who were offered large campaign donations and support in exchange for their votes on a 2010 bill to decide the legality of electronic bingo in a statewide vote. In a series of phone calls secretly recorded by the FBI, Gilley, McGregor, state Sen. Harri Anne Smith and others are heard discussing ways to convince members of the state Senate and House to vote in favor of the pro-gambling bill.
After former Elmore County lawmaker Preuitt voted in favor of the bill on March 30, 2010, Gilley congratulated him on the phone for “supporting democracy.” On other tapes, Gilley promised to “taper off” an opposition candidate in Preuitt’s district, which was centered in Talladega but extended south through Coosa and Elmore counties.
Gilley told Preuitt “we are rock-solid behind you,” which Gilley explained to Acting U.S. Attorney Louis Franklin meant that he and McGregor “were going to do whatever it took to get (Preuitt) reelected.”
During the lead-up to the Senate vote in March 2010, Gilley was recorded on the phone with defendant Jay Walker discussing purchasing trucks from Preuitt’s Talladega Ford dealership to further woo the state senator to vote their way.
“I’m going to look at a truck while there,” said Walker, a political operative who was planning to visit Preuitt in Talladega because Gilley was out of state. “I don’t need one, but I may buy one anyway.”
Gilley agreed.
“We’ve got to have his vote, if we need to buy a fleet of trucks from him, then buy a fleet of trucks,” he said.
Preuitt was never recorded discussing the truck purchase, though, and like McGregor, his only references to an alleged deal were vague.
Gilley said his main contributions to Preuitt would have to be in-kind or fundraising efforts.
In his cross-examination, McGowan noted the massive debt Gilley incurred through the construction of Country Crossing and his efforts over three years to push through electronic bingo legislation. Gilley admitted to being “personally broke,” and said he was more than $160 million in debt.
He offered Preuitt, former State Sen. Larry Means and others appearances by country music stars who were friends and associates, including Randy Owen of Alabama, Lorrie Morgan and others. Gilley’s “Democracy Tour” stops were used as an in-kind contribution in lieu of cash for campaigning lawmakers who voted for the gambling legislation.
Former State Sen. Wendell Mitchell, who represented Millbrook and western Elmore County, became very sick the week before the vote on “simple bingo” was due to be held. Gilley was recorded talking with a campaign manager trying to get Mitchell to the Legislature, even for a couple hours, so he could cast a vote in favor of SB380.
“If he can suck it up and make it up there,” Gilley said, “It’ll be the best damn day of work he’d ever do.”
In a taped phone call with Mitchell’s campaign manager Joe Perkins, Gilley added to the list of country stars with Alan Jackson, Reba McIntyre and Jamey Johnson among the talent available for the state senator’s reelection bid.
Gilley’s hand was slapped Monday after, in an offhand statement to Franklin, he revealed knowledge of previous activities in the court.
“I’ve been called a con artist in this courtroom, but right here I’m being conned,” he said.
After a quick objection by defense attorneys, the jury was excused so it could be determined how Gilley found out what was said in the courtroom, and from whom. He said two friends told him about McGregor attorney Joe Espy’s “con artist” comment from friends in Enterprise last week. Witnesses are not allowed to be present in the courtroom, and are instructed not to follow print, broadcast or online accounts of the proceedings.
McGowan also pointed out places where Gilley was in opposition to McGregor. Gilley said McGregor’s preferred bills set up a monopoly for VictoryLand, the Jefferson County Greyhound Park and other McGregor strongholds, preventing the expansion of electronic bingo to other places, such as Etowah County, which wanted to establish operations.
McGowan and Gilley read a profanity-laced phone conversation with a Mississippi casino operator in which Gilley recounted his “verbal blows” with the VictoryLand owner.
Gilley told casino operator Rick Carter how he stood up to McGregor on texts in SB 380 that he believed created a monopoly.
“I told him, you’re either going to get on board with us … or lay your ass on the sideline,” Gilley said while reading the transcript. “My life’s on the line here, and yours (McGregor’s) apparently ain’t.”
McGowan stated the reason McGregor didn’t attend a March 2010 meeting at Books-a-Million with Sen. Scott Beason and lobbyist Jarrad Massey was because “he was too ethical to join you in your criminal endeavor.”
Gilley disagreed with a chuckle.
Walker attorney Susan Walker expressed to Judge Thompson that she had recordings of phone calls Gilley made from jail that she planned to use to chip away at his credibility during cross examination. Franklin repeatedly pushed for James to express exactly what tapes she planned to use, so he could prepare.
That led James to repeat her desire for Walker to get a separate trial, which Thompson said he rejected months ago, and continued to agree. James said she “doesn’t play well with others,” and is frustrated having to telegraph her case simply to speed up the trial in light of the nine defendants.
Tuesday afternoon, James interrogated Gilley on the events that led to his bond being revoked after he offered a bribe to Massey and Walker to “keep the same story” and “continue the lie,” as Gilley described it. James said the offer to Walker was immediately relayed to her, which led to the revocation of Gilley’s bond.
After spending nearly four months in jail, Gilley began to cooperate with the government and changed his plea to guilty.
Gilley is still looking at up to 20 years in prison, with the government promising a “downward departure” from the sentencing guidelines for truthful testimony that helps the government’s case.
Former AG Baxley gives history lesson on country singers in Alabama politics
MONTGOMERY, Ala. — Former Attorney General Bill Baxley brought laughs to Alabama's gambling corruption trial when he gave a history lesson about country entertainers helping with Alabama campaigns, including his own.
Baxley raised the topic Tuesday after Country Crossing casino developer Ronnie Gilley testified about offering country entertainers like Lorrie Morgan to appear at campaign events for state legislators in return for votes on pro-gambling legislation
Baxley, who's defending VictoryLand lobbyist Tom Coker, asked Gilley if he was aware that Morgan's father, country singer George Morgan, campaigned with George Wallace in one of his races for governor or that Hank Williams Jr. also helped in an Alabama campaign.
Gilley said no. Baxley said he knew because Williams assisted in his campaign for governor.
"And even with him I couldn't win," Baxley said.
DAVID GOODWIN Political Editor
Country Crossing developer Ronnie Gilley endured his fourth day of testimony Tuesday in the corruption trial of his nine former co-defendants, including former area lawmaker Jim Preuitt and VictoryLand owner Milton McGregor.
In his testimony, he named legislators who were offered large campaign donations and support in exchange for their votes on a 2010 bill to decide the legality of electronic bingo in a statewide vote. In a series of phone calls secretly recorded by the FBI, Gilley, McGregor, state Sen. Harri Anne Smith and others are heard discussing ways to convince members of the state Senate and House to vote in favor of the pro-gambling bill.
After former Elmore County lawmaker Preuitt voted in favor of the bill on March 30, 2010, Gilley congratulated him on the phone for “supporting democracy.” On other tapes, Gilley promised to “taper off” an opposition candidate in Preuitt’s district, which was centered in Talladega but extended south through Coosa and Elmore counties.
Gilley told Preuitt “we are rock-solid behind you,” which Gilley explained to Acting U.S. Attorney Louis Franklin meant that he and McGregor “were going to do whatever it took to get (Preuitt) reelected.”
During the lead-up to the Senate vote in March 2010, Gilley was recorded on the phone with defendant Jay Walker discussing purchasing trucks from Preuitt’s Talladega Ford dealership to further woo the state senator to vote their way.
“I’m going to look at a truck while there,” said Walker, a political operative who was planning to visit Preuitt in Talladega because Gilley was out of state. “I don’t need one, but I may buy one anyway.”
Gilley agreed.
“We’ve got to have his vote, if we need to buy a fleet of trucks from him, then buy a fleet of trucks,” he said.
Preuitt was never recorded discussing the truck purchase, though, and like McGregor, his only references to an alleged deal were vague.
Gilley said his main contributions to Preuitt would have to be in-kind or fundraising efforts.
In his cross-examination, McGowan noted the massive debt Gilley incurred through the construction of Country Crossing and his efforts over three years to push through electronic bingo legislation. Gilley admitted to being “personally broke,” and said he was more than $160 million in debt.
He offered Preuitt, former State Sen. Larry Means and others appearances by country music stars who were friends and associates, including Randy Owen of Alabama, Lorrie Morgan and others. Gilley’s “Democracy Tour” stops were used as an in-kind contribution in lieu of cash for campaigning lawmakers who voted for the gambling legislation.
Former State Sen. Wendell Mitchell, who represented Millbrook and western Elmore County, became very sick the week before the vote on “simple bingo” was due to be held. Gilley was recorded talking with a campaign manager trying to get Mitchell to the Legislature, even for a couple hours, so he could cast a vote in favor of SB380.
“If he can suck it up and make it up there,” Gilley said, “It’ll be the best damn day of work he’d ever do.”
In a taped phone call with Mitchell’s campaign manager Joe Perkins, Gilley added to the list of country stars with Alan Jackson, Reba McIntyre and Jamey Johnson among the talent available for the state senator’s reelection bid.
Gilley’s hand was slapped Monday after, in an offhand statement to Franklin, he revealed knowledge of previous activities in the court.
“I’ve been called a con artist in this courtroom, but right here I’m being conned,” he said.
After a quick objection by defense attorneys, the jury was excused so it could be determined how Gilley found out what was said in the courtroom, and from whom. He said two friends told him about McGregor attorney Joe Espy’s “con artist” comment from friends in Enterprise last week. Witnesses are not allowed to be present in the courtroom, and are instructed not to follow print, broadcast or online accounts of the proceedings.
McGowan also pointed out places where Gilley was in opposition to McGregor. Gilley said McGregor’s preferred bills set up a monopoly for VictoryLand, the Jefferson County Greyhound Park and other McGregor strongholds, preventing the expansion of electronic bingo to other places, such as Etowah County, which wanted to establish operations.
McGowan and Gilley read a profanity-laced phone conversation with a Mississippi casino operator in which Gilley recounted his “verbal blows” with the VictoryLand owner.
Gilley told casino operator Rick Carter how he stood up to McGregor on texts in SB 380 that he believed created a monopoly.
“I told him, you’re either going to get on board with us … or lay your ass on the sideline,” Gilley said while reading the transcript. “My life’s on the line here, and yours (McGregor’s) apparently ain’t.”
McGowan stated the reason McGregor didn’t attend a March 2010 meeting at Books-a-Million with Sen. Scott Beason and lobbyist Jarrad Massey was because “he was too ethical to join you in your criminal endeavor.”
Gilley disagreed with a chuckle.
Walker attorney Susan Walker expressed to Judge Thompson that she had recordings of phone calls Gilley made from jail that she planned to use to chip away at his credibility during cross examination. Franklin repeatedly pushed for James to express exactly what tapes she planned to use, so he could prepare.
That led James to repeat her desire for Walker to get a separate trial, which Thompson said he rejected months ago, and continued to agree. James said she “doesn’t play well with others,” and is frustrated having to telegraph her case simply to speed up the trial in light of the nine defendants.
Tuesday afternoon, James interrogated Gilley on the events that led to his bond being revoked after he offered a bribe to Massey and Walker to “keep the same story” and “continue the lie,” as Gilley described it. James said the offer to Walker was immediately relayed to her, which led to the revocation of Gilley’s bond.
After spending nearly four months in jail, Gilley began to cooperate with the government and changed his plea to guilty.
Gilley is still looking at up to 20 years in prison, with the government promising a “downward departure” from the sentencing guidelines for truthful testimony that helps the government’s case.
Former AG Baxley gives history lesson on country singers in Alabama politics
MONTGOMERY, Ala. — Former Attorney General Bill Baxley brought laughs to Alabama's gambling corruption trial when he gave a history lesson about country entertainers helping with Alabama campaigns, including his own.
Baxley raised the topic Tuesday after Country Crossing casino developer Ronnie Gilley testified about offering country entertainers like Lorrie Morgan to appear at campaign events for state legislators in return for votes on pro-gambling legislation
Baxley, who's defending VictoryLand lobbyist Tom Coker, asked Gilley if he was aware that Morgan's father, country singer George Morgan, campaigned with George Wallace in one of his races for governor or that Hank Williams Jr. also helped in an Alabama campaign.
Gilley said no. Baxley said he knew because Williams assisted in his campaign for governor.
"And even with him I couldn't win," Baxley said.
How Municipal Corruption Works in New Rochelle
How Municipal Corruption Works in New Rochelle: A Case Study from the New Rochelle Board of Education's Painter-Working Foreman Position
By Robert Cox
Some of these people, however, are involved in illegal activity ranging from gambling, to loan sharking, to drug dealing, or worse. These are people with illicit incomes that need to show a "visible means of support" to justify to tax authorities their ...
By Robert Cox
Some of these people, however, are involved in illegal activity ranging from gambling, to loan sharking, to drug dealing, or worse. These are people with illicit incomes that need to show a "visible means of support" to justify to tax authorities their ...
Wednesday, June 29, 2011
Moody's warns Caesars' debt burden....
Moody's warns Caesars' debt burden may 'weaken competitive position'
By Howard Stutz
LAS VEGAS REVIEW-JOURNAL
Investors in Caesars Entertainment were warned Wednesday the casino operator is not out of the woods financially despite companywide cost-cutting measures.
In an analysis report on the Las Vegas-based casino operator, Moody's Investor's Service said Caesars, which operates 10 Strip-area casinos, including Caesars Palace, Rio, Harrah's and Bally's, doesn't have any significant long-term debt coming due until 2015.
However, the company's debt of more than $23 billion "is eating its cash and may weaken its competitive position."
Caesars, which had been known as Harrah's Entertainment, became privately held in a 2008 private equity buyout valued at $29 billion. The company does have publicly held debt and attempted to list some shares publicly last year before abandoning the plan.
By Howard Stutz
LAS VEGAS REVIEW-JOURNAL
Investors in Caesars Entertainment were warned Wednesday the casino operator is not out of the woods financially despite companywide cost-cutting measures.
In an analysis report on the Las Vegas-based casino operator, Moody's Investor's Service said Caesars, which operates 10 Strip-area casinos, including Caesars Palace, Rio, Harrah's and Bally's, doesn't have any significant long-term debt coming due until 2015.
However, the company's debt of more than $23 billion "is eating its cash and may weaken its competitive position."
Caesars, which had been known as Harrah's Entertainment, became privately held in a 2008 private equity buyout valued at $29 billion. The company does have publicly held debt and attempted to list some shares publicly last year before abandoning the plan.
Ala. casino owner's credibility attacked in trial
Ala. casino owner's credibility attacked in trial
By PHILLIP RAWLS
MONTGOMERY, Ala. --
A casino owner who pleaded guilty in Alabama's gambling corruption investigation had to apologize for some of his words Tuesday after defense attorneys began attacking his credibility, getting him to admit he was deeply in debt and lacked the cash to pay millions in bribes he confessed to offering legislators.
After three days of testifying for the prosecution, Country Crossing casino developer Ronnie Gilley started answering questions from defense lawyers.
Walter McGowan, an attorney for indicted casino owner Milton McGregor, played a tape the FBI made of a phone conversation between Gilley and his lead lobbyist, Jarrod Massey. In the call, Massey said he would pay a $50,000 bonus to another of his lobbyists, Jennifer Pouncy, if she would perform a sex act with one of the defendants, former Republican state Sen. Jim Preuitt of Talladega, and videotape it.
After hearing the taped call, Gilley said nothing occurred and apologized to Preuitt and his wife. "It was a very distasteful joke," he told the jury.
"I have no excuse for the comment," he said. But then under further questioning by McGowan, he offered an excuse.
"Ms. Pouncy has engaged in conversations like that before with individuals in a joking way," he said.
Gilley said that when the call was made on March 22, 2010, he needed Preuitt's vote on pro-gambling legislation.
Preuitt, McGregor and seven others are on trial in federal court on charges of buying and selling votes on pro-gambling legislation. The legislation, a proposed constitutional amendment designed to protect electronic bingo casinos from raids, was passed by the Senate on March 30, 2010, but died in the House after the FBI revealed its investigation into Statehouse corruption.
Gilley, Massey and Pouncy have pleaded guilty to offering millions in bribes to legislators to pass the legislation. The two lobbyists are scheduled to testify later in the trial, which is in its fourth week.
He admitted under questioning that he offered Massey a 1 percent financial interest in the Country Crossing casino in Dothan last year if he would not cooperate with government prosecutors, but Massey pleaded guilty in December.
In Gilley's testimony for the prosecution, he said he worked with McGregor to pass the pro-gambling legislation and offered to hold campaign fundraisers with country music singers for legislators who supported the bill. He hyped the concerts as being worth $500,000 each in campaign contributions.
Under questioning by defense lawyers, Gilley admitted that in March 2010, when the Senate was considering the bill, his real estate and entertainment businesses had $160 million in debts. He also acknowledged that his BamaJam outdoor music festival in Enterprise, which attracted top acts like Brooks & Dunn, Taylor Swift and Kid Rock, was never financially successful, and he was broke because his casino had been forced to closed by the governor's gambling task force in early 2010.
Under questioning by other lawyers, Gilley acknowledged that he was $50,000 behind in paying country singer George Jones last year. Gilley said Jones was paid monthly to be a spokesman for Country Crossing, but he was never an investor in Country Crossing, even though his name was on the Possum Holler bed and breakfast at the Dothan attraction.
The defense played a taped call between Gilley and Massey, the lobbyist, in which they discussed using Jones to try to get Preuitt's vote for the pro-gambling bill. In the call, Gilley told Massey to tell Preuitt that Gilley would bring Jones by his Talladega car dealership to buy some trucks. But Gilley admitted under questioning he never took Jones to the dealership and never bought any vehicles from Preuitt.
While the jury was out of the courtroom, the defense lawyer for Country Crossing spokesman Jay Walker, Susan James, called Gilley "a con man" and said her goal was "attacking his veracity" in front of the jury.
McGregor's attorneys tried to show Tuesday that Gilley wasn't working closely with the owner of the closed VictoryLand casino in Shorter.
Under questioning, Gilley admitted that even though McGregor gave him $5 million to promote the gambling legislation, he used it toward construction expenses at Country Crossing.
"It was gone," he told the jury.
He also acknowledged that in one tape-recorded phone call in March 2010, he was trying to get Rick Carter, owner of the Island View Casino in Gulfport, Miss., to invest in Country Crossing, and he told Carter that he and McGregor had differences over strategy on the pro-gambling legislation.
Gilley told Carter that he had told McGregor, "'I promise you this, Milton, we are going to do this with or without you.'"
Gilley tried to defend himself against defense lawyers' criticism by portraying himself as a victim of Montgomery politics.
"I did not instigate any of this and it's continuing to take place today," said Gilley, who will return to the witness stand Wednesday.
By PHILLIP RAWLS
MONTGOMERY, Ala. --
A casino owner who pleaded guilty in Alabama's gambling corruption investigation had to apologize for some of his words Tuesday after defense attorneys began attacking his credibility, getting him to admit he was deeply in debt and lacked the cash to pay millions in bribes he confessed to offering legislators.
After three days of testifying for the prosecution, Country Crossing casino developer Ronnie Gilley started answering questions from defense lawyers.
Walter McGowan, an attorney for indicted casino owner Milton McGregor, played a tape the FBI made of a phone conversation between Gilley and his lead lobbyist, Jarrod Massey. In the call, Massey said he would pay a $50,000 bonus to another of his lobbyists, Jennifer Pouncy, if she would perform a sex act with one of the defendants, former Republican state Sen. Jim Preuitt of Talladega, and videotape it.
After hearing the taped call, Gilley said nothing occurred and apologized to Preuitt and his wife. "It was a very distasteful joke," he told the jury.
"I have no excuse for the comment," he said. But then under further questioning by McGowan, he offered an excuse.
"Ms. Pouncy has engaged in conversations like that before with individuals in a joking way," he said.
Gilley said that when the call was made on March 22, 2010, he needed Preuitt's vote on pro-gambling legislation.
Preuitt, McGregor and seven others are on trial in federal court on charges of buying and selling votes on pro-gambling legislation. The legislation, a proposed constitutional amendment designed to protect electronic bingo casinos from raids, was passed by the Senate on March 30, 2010, but died in the House after the FBI revealed its investigation into Statehouse corruption.
Gilley, Massey and Pouncy have pleaded guilty to offering millions in bribes to legislators to pass the legislation. The two lobbyists are scheduled to testify later in the trial, which is in its fourth week.
He admitted under questioning that he offered Massey a 1 percent financial interest in the Country Crossing casino in Dothan last year if he would not cooperate with government prosecutors, but Massey pleaded guilty in December.
In Gilley's testimony for the prosecution, he said he worked with McGregor to pass the pro-gambling legislation and offered to hold campaign fundraisers with country music singers for legislators who supported the bill. He hyped the concerts as being worth $500,000 each in campaign contributions.
Under questioning by defense lawyers, Gilley admitted that in March 2010, when the Senate was considering the bill, his real estate and entertainment businesses had $160 million in debts. He also acknowledged that his BamaJam outdoor music festival in Enterprise, which attracted top acts like Brooks & Dunn, Taylor Swift and Kid Rock, was never financially successful, and he was broke because his casino had been forced to closed by the governor's gambling task force in early 2010.
Under questioning by other lawyers, Gilley acknowledged that he was $50,000 behind in paying country singer George Jones last year. Gilley said Jones was paid monthly to be a spokesman for Country Crossing, but he was never an investor in Country Crossing, even though his name was on the Possum Holler bed and breakfast at the Dothan attraction.
The defense played a taped call between Gilley and Massey, the lobbyist, in which they discussed using Jones to try to get Preuitt's vote for the pro-gambling bill. In the call, Gilley told Massey to tell Preuitt that Gilley would bring Jones by his Talladega car dealership to buy some trucks. But Gilley admitted under questioning he never took Jones to the dealership and never bought any vehicles from Preuitt.
While the jury was out of the courtroom, the defense lawyer for Country Crossing spokesman Jay Walker, Susan James, called Gilley "a con man" and said her goal was "attacking his veracity" in front of the jury.
McGregor's attorneys tried to show Tuesday that Gilley wasn't working closely with the owner of the closed VictoryLand casino in Shorter.
Under questioning, Gilley admitted that even though McGregor gave him $5 million to promote the gambling legislation, he used it toward construction expenses at Country Crossing.
"It was gone," he told the jury.
He also acknowledged that in one tape-recorded phone call in March 2010, he was trying to get Rick Carter, owner of the Island View Casino in Gulfport, Miss., to invest in Country Crossing, and he told Carter that he and McGregor had differences over strategy on the pro-gambling legislation.
Gilley told Carter that he had told McGregor, "'I promise you this, Milton, we are going to do this with or without you.'"
Gilley tried to defend himself against defense lawyers' criticism by portraying himself as a victim of Montgomery politics.
"I did not instigate any of this and it's continuing to take place today," said Gilley, who will return to the witness stand Wednesday.
Antione Walker: Gambling Addict
Former NBA star in bad check plea
LAS VEGAS(UPI) -- Former NBA all-star Antoine Walker has pleaded guilty to felony bad check charges in a Nevada court, but in a deal will probably not face jail time.
Instead, prosecutors said, Walker will be put on probation as he works to pay off gambling debts of more than $750,000 owed to three casinos, the Las Vegas Sun reported Wednesday.
"Being put on probation, he'll have a court order to pay the restitution to the casinos," Deputy District Attorney Sam Bateman said.
Walker had pleaded not guilty to six counts of writing checks without sufficient funds with attempt to defraud in June 2010, before changing his plea Tuesday.
Attorneys entered the guilty plea on behalf of Walker, who was not in court Tuesday.
Walker, who won a championship in 2006 with the Miami Heat and was a three-time all-star for the Boston Celtics, last played in the NBA in 2008 with the Minnesota Timberwolves.
Walker now plays for the Idaho Stampede in the NBA Development League.
LAS VEGAS(UPI) -- Former NBA all-star Antoine Walker has pleaded guilty to felony bad check charges in a Nevada court, but in a deal will probably not face jail time.
Instead, prosecutors said, Walker will be put on probation as he works to pay off gambling debts of more than $750,000 owed to three casinos, the Las Vegas Sun reported Wednesday.
"Being put on probation, he'll have a court order to pay the restitution to the casinos," Deputy District Attorney Sam Bateman said.
Walker had pleaded not guilty to six counts of writing checks without sufficient funds with attempt to defraud in June 2010, before changing his plea Tuesday.
Attorneys entered the guilty plea on behalf of Walker, who was not in court Tuesday.
Walker, who won a championship in 2006 with the Miami Heat and was a three-time all-star for the Boston Celtics, last played in the NBA in 2008 with the Minnesota Timberwolves.
Walker now plays for the Idaho Stampede in the NBA Development League.
Sovereignty as Protection from consequences
Sovereignty is often used to avoid responsible business practices, just as Foxwoods and Mohegan Sun have dumped drunks on the roads of Connecticut.
As this case winds its way through the courts, it will be interesting to see if Tribal Casinos will be held as accountable as private businesses for their actions.
NM court OKs damage lawsuit against tribal casino
By BARRY MASSEY
SANTA FE, N.M. -- The family of two siblings killed in a car accident in New Mexico can seek damages against a tribal casino for serving them alcohol after they became intoxicated, the state's highest court has ruled.
Santa Ana Pueblo's casino had argued that the legal dispute should be handled in tribal court rather than in a state court. The state Supreme Court disagreed in a ruling on Monday
The unanimous decision permits a wrongful death lawsuit to move ahead against the Santa Ana Star Casino near Bernalillo.
The case was brought by the mother and other family of Michael and Desiree Mendoza, a brother and sister who were killed in a car crash in July 2006 after attending a wedding reception at the casino. It's unclear which of the two were driving the car. The lawsuit claims their deaths were caused because the casino continued to serve them alcohol after they were intoxicated. A pueblo liquor ordinance prohibited the casino from serving alcoholic drinks to an intoxicated person.
David Plotsky, an Albuquerque lawyer for the Mendozas' mother and Desiree's two children, said Tuesday the ruling means "the tribal casinos are subject to the same set of laws and accountability as a nontribal bar or tavern."
"I think it's fairly important because there is a lot of patronage of the casinos and whenever alcohol is involved there needs to be clarification that the state liquor liability laws are going to apply to activities on tribal casino property. That wasn't clear until now," said Plotsky.
New Mexico has a so-called "dram shop" law that permits intoxicated patrons to sue state-licensed bars to recover damages for their injuries. A state statute also allows claims by third parties - such as a motorist injured by a drunken driver - against a bar that served the intoxicated person.
However, the casino is licensed by the pueblo - not the state - to sell alcohol. The casino contended a state court lacked jurisdiction over it.
The justices said the damage claims against the casino were allowed under legal precedents in case law. The court also said a provision in a gambling compact between the state and the tribe provides for state courts to handle cases involving injuries to casino visitors.
The case goes back to a state district court in Albuquerque, which had dismissed the lawsuit.
Richard Hughes, a lawyer for Santa Ana's casino, said his client was reviewing the decision and considering its legal options. He said the ruling "by no means determines the outcome of the case" and whether the casino will be held liable for damages.
As this case winds its way through the courts, it will be interesting to see if Tribal Casinos will be held as accountable as private businesses for their actions.
NM court OKs damage lawsuit against tribal casino
By BARRY MASSEY
SANTA FE, N.M. -- The family of two siblings killed in a car accident in New Mexico can seek damages against a tribal casino for serving them alcohol after they became intoxicated, the state's highest court has ruled.
Santa Ana Pueblo's casino had argued that the legal dispute should be handled in tribal court rather than in a state court. The state Supreme Court disagreed in a ruling on Monday
The unanimous decision permits a wrongful death lawsuit to move ahead against the Santa Ana Star Casino near Bernalillo.
The case was brought by the mother and other family of Michael and Desiree Mendoza, a brother and sister who were killed in a car crash in July 2006 after attending a wedding reception at the casino. It's unclear which of the two were driving the car. The lawsuit claims their deaths were caused because the casino continued to serve them alcohol after they were intoxicated. A pueblo liquor ordinance prohibited the casino from serving alcoholic drinks to an intoxicated person.
David Plotsky, an Albuquerque lawyer for the Mendozas' mother and Desiree's two children, said Tuesday the ruling means "the tribal casinos are subject to the same set of laws and accountability as a nontribal bar or tavern."
"I think it's fairly important because there is a lot of patronage of the casinos and whenever alcohol is involved there needs to be clarification that the state liquor liability laws are going to apply to activities on tribal casino property. That wasn't clear until now," said Plotsky.
New Mexico has a so-called "dram shop" law that permits intoxicated patrons to sue state-licensed bars to recover damages for their injuries. A state statute also allows claims by third parties - such as a motorist injured by a drunken driver - against a bar that served the intoxicated person.
However, the casino is licensed by the pueblo - not the state - to sell alcohol. The casino contended a state court lacked jurisdiction over it.
The justices said the damage claims against the casino were allowed under legal precedents in case law. The court also said a provision in a gambling compact between the state and the tribe provides for state courts to handle cases involving injuries to casino visitors.
The case goes back to a state district court in Albuquerque, which had dismissed the lawsuit.
Richard Hughes, a lawyer for Santa Ana's casino, said his client was reviewing the decision and considering its legal options. He said the ruling "by no means determines the outcome of the case" and whether the casino will be held liable for damages.
Tuesday, June 28, 2011
Alabama gambling trial highlights practice of lobbyists paying referral fees to legislators
Alabama gambling trial highlights practice of lobbyists paying referral fees to legislators
PHILLIP RAWLS Associated Press
MONTGOMERY, Ala. — Alabama's gambling corruption trial has exposed a little-known source of income for some legislators: thousands of dollars in referral fees from lobbyists who are trying to influence their votes.
Testimony in the case shows that Republican state Rep. Barry Mask of Wetumpka and former Democratic Rep. Terry Spicer of Elba were paid for referrals for years.
Jim Sumner, executive director of the State Ethics Commission, said he's not aware of any other legislators who got referral fees. "I'm very wary of these because of the conflict of interest that's created," Sumner said in an interview.
Country Crossing casino lobbyist Jarrod Massey testified in a pretrial hearing that he paid Spicer $1,000 to $2,000 in cash monthly for six or seven years while he was serving in the Alabama House for referring clients to him. Massey said the referrals from Spicer included Country Crossing developer Ronnie Gilley, who became his No. 1 client.
Both Massey and Gilley have pleaded guilty to offering millions in bribes to legislators to support pro-gambling legislation.
Spicer, who was defeated in November, serves as school superintendent in Elba.
He did not return phone calls seeking comment about the payments. A review of the financial disclosure forms he filed with the Ethics Commission each year do not show any payments by Massey.
Mask's annual ethics forms do show he got payments from former Lt. Gov. Steve Windom, whose lobbying clients include Computer Associates. Legislators check broad ranges of dollars on the forms instead of listing specific amounts. In most years, Mask listed his referral fees from Windom as being between $10,000 and $50,000. Windom said in an interview the amounts have varied, but they have been "on the low end of the $10,000 to $50,000 annually."
Mask is a former lobbyist for several groups, including the Business Council of Alabama. He is one of three legislators who helped the FBI with its investigation of Statehouse corruption.
He testified that he recommended Windom to Computer Associates in 2004 before being elected to the Legislature in 2006. His agreement with Windom called for him to get referral fees as long as Windom kept the computer company as a client.
Sumner said Alabama's ethics law does not address referral fees specifically, but it does prohibit a public official from using his position for personal gain. He said Mask's situation is different because the referral fee started before he was elected to the Legislature.
The Ethics Commission has never issued an advisory opinion on the fees because "nobody has ever asked," Sumner said.
But he made his view clear: "I don't think a member of the Legislature should be paid for recommending a client to a lobbyist."
Sumner said referral fees are reminiscent of what went on in the Legislature before the enactment of Alabama's first ethics law in 1973. At that time, many seats in the Legislature were held by lawyers and it was common for them to get retainers from utilities, insurance companies and other major corporations.
The ethics chief said the new law caused the retainers to start disappearing and the number of lawyers in the Legislature to decline.
"I don't think we ever want to go back to that," he said.
PHILLIP RAWLS Associated Press
MONTGOMERY, Ala. — Alabama's gambling corruption trial has exposed a little-known source of income for some legislators: thousands of dollars in referral fees from lobbyists who are trying to influence their votes.
Testimony in the case shows that Republican state Rep. Barry Mask of Wetumpka and former Democratic Rep. Terry Spicer of Elba were paid for referrals for years.
Jim Sumner, executive director of the State Ethics Commission, said he's not aware of any other legislators who got referral fees. "I'm very wary of these because of the conflict of interest that's created," Sumner said in an interview.
Country Crossing casino lobbyist Jarrod Massey testified in a pretrial hearing that he paid Spicer $1,000 to $2,000 in cash monthly for six or seven years while he was serving in the Alabama House for referring clients to him. Massey said the referrals from Spicer included Country Crossing developer Ronnie Gilley, who became his No. 1 client.
Both Massey and Gilley have pleaded guilty to offering millions in bribes to legislators to support pro-gambling legislation.
Spicer, who was defeated in November, serves as school superintendent in Elba.
He did not return phone calls seeking comment about the payments. A review of the financial disclosure forms he filed with the Ethics Commission each year do not show any payments by Massey.
Mask's annual ethics forms do show he got payments from former Lt. Gov. Steve Windom, whose lobbying clients include Computer Associates. Legislators check broad ranges of dollars on the forms instead of listing specific amounts. In most years, Mask listed his referral fees from Windom as being between $10,000 and $50,000. Windom said in an interview the amounts have varied, but they have been "on the low end of the $10,000 to $50,000 annually."
Mask is a former lobbyist for several groups, including the Business Council of Alabama. He is one of three legislators who helped the FBI with its investigation of Statehouse corruption.
He testified that he recommended Windom to Computer Associates in 2004 before being elected to the Legislature in 2006. His agreement with Windom called for him to get referral fees as long as Windom kept the computer company as a client.
Sumner said Alabama's ethics law does not address referral fees specifically, but it does prohibit a public official from using his position for personal gain. He said Mask's situation is different because the referral fee started before he was elected to the Legislature.
The Ethics Commission has never issued an advisory opinion on the fees because "nobody has ever asked," Sumner said.
But he made his view clear: "I don't think a member of the Legislature should be paid for recommending a client to a lobbyist."
Sumner said referral fees are reminiscent of what went on in the Legislature before the enactment of Alabama's first ethics law in 1973. At that time, many seats in the Legislature were held by lawyers and it was common for them to get retainers from utilities, insurance companies and other major corporations.
The ethics chief said the new law caused the retainers to start disappearing and the number of lawyers in the Legislature to decline.
"I don't think we ever want to go back to that," he said.
Gilley's Credibility Attacked
Alabama casino owner casino's credibility attacked by defense lawyers in gambling trial
PHILLIP RAWLS Associated Press
MONTGOMERY, Ala. — A casino owner who pleaded guilty in Alabama's gambling corruption investigation had to apologize for some of his words Tuesday after defense attorneys began attacking his credibility, getting him to admit he was deeply in debt and lacked the cash to pay millions in bribes he confessed to offering legislators.
After three days of testifying for the prosecution, Country Crossing casino developer Ronnie Gilley started answering questions from defense lawyers.
Walter McGowan, an attorney for indicted casino owner Milton McGregor, played a tape the FBI made of a phone conversation between Gilley and his lead lobbyist, Jarrod Massey. In the call, Massey said he would pay a $50,000 bonus to another of his lobbyists, Jennifer Pouncy, if she would perform a sex act with one of the defendants, former Republican state Sen. Jim Preuitt of Talladega, and videotape it.
After hearing the taped call, Gilley said nothing occurred and apologized to Preuitt and his wife. "It was a very distasteful joke," he told the jury.
"I have no excuse for the comment," he said. But then under further questioning by McGowan, he offered an excuse.
"Ms. Pouncy has engaged in conversations like that before with individuals in a joking way," he said.
Gilley said that when the call was made on March 22, 2010, he needed Preuitt's vote on pro-gambling legislation.
Preuitt, McGregor and seven others are on trial in federal court on charges of buying and selling votes on pro-gambling legislation. The legislation, a proposed constitutional amendment designed to protect electronic bingo casinos from raids, was passed by the Senate on March 30, 2010, but died in the House after the FBI revealed its investigation into Statehouse corruption.
Gilley, Massey and Pouncy have pleaded guilty to offering millions in bribes to legislators to pass the legislation. The two lobbyists are scheduled to testify later in the trial, which is in its fourth week.
He admitted under questioning that he offered Massey a 1 percent financial interest in the Country Crossing casino in Dothan last year if he would not cooperate with government prosecutors, but Massey pleaded guilty in December.
In Gilley's testimony for the prosecution, he said he worked with McGregor to pass the pro-gambling legislation and offered to hold campaign fundraisers with country music singers for legislators who supported the bill. He hyped the concerts as being worth $500,000 each in campaign contributions.
Under questioning by defense lawyers, Gilley admitted that in March 2010, when the Senate was considering the bill, his real estate and entertainment businesses had $160 million in debts. He also acknowledged that his BamaJam outdoor music festival in Enterprise, which attracted top acts like Brooks & Dunn, Taylor Swift and Kid Rock, was never financially successful, and he was broke because his casino had been forced to closed by the governor's gambling task force in early 2010.
Under questioning by other lawyers, Gilley acknowledged that he was $50,000 behind in paying country singer George Jones last year. Gilley said Jones was paid monthly to be a spokesman for Country Crossing, but he was never an investor in Country Crossing, even though his name was on the Possum Holler bed and breakfast at the Dothan attraction.
The defense played a taped call between Gilley and Massey, the lobbyist, in which they discussed using Jones to try to get Preuitt's vote for the pro-gambling bill. In the call, Gilley told Massey to tell Preuitt that Gilley would bring Jones by his Talladega car dealership to buy some trucks. But Gilley admitted under questioning he never took Jones to the dealership and never bought any vehicles from Preuitt.
While the jury was out of the courtroom, the defense lawyer for Country Crossing spokesman Jay Walker, Susan James, called Gilley "a con man" and said her goal was "attacking his veracity" in front of the jury.
McGregor's attorneys tried to show Tuesday that Gilley wasn't working closely with the owner of the closed VictoryLand casino in Shorter.
Under questioning, Gilley admitted that even though McGregor gave him $5 million to promote the gambling legislation, he used it toward construction expenses at Country Crossing.
"It was gone," he told the jury.
He also acknowledged that in one tape-recorded phone call in March 2010, he was trying to get Rick Carter, owner of the Island View Casino in Gulfport, Miss., to invest in Country Crossing, and he told Carter that he and McGregor had differences over strategy on the pro-gambling legislation.
Gilley told Carter that he had told McGregor, "'I promise you this, Milton, we are going to do this with or without you.'"
Gilley tried to defend himself against defense lawyers' criticism by portraying himself as a victim of Montgomery politics.
"I did not instigate any of this and it's continuing to take place today," said Gilley, who will return to the witness stand Wednesday.
PHILLIP RAWLS Associated Press
MONTGOMERY, Ala. — A casino owner who pleaded guilty in Alabama's gambling corruption investigation had to apologize for some of his words Tuesday after defense attorneys began attacking his credibility, getting him to admit he was deeply in debt and lacked the cash to pay millions in bribes he confessed to offering legislators.
After three days of testifying for the prosecution, Country Crossing casino developer Ronnie Gilley started answering questions from defense lawyers.
Walter McGowan, an attorney for indicted casino owner Milton McGregor, played a tape the FBI made of a phone conversation between Gilley and his lead lobbyist, Jarrod Massey. In the call, Massey said he would pay a $50,000 bonus to another of his lobbyists, Jennifer Pouncy, if she would perform a sex act with one of the defendants, former Republican state Sen. Jim Preuitt of Talladega, and videotape it.
After hearing the taped call, Gilley said nothing occurred and apologized to Preuitt and his wife. "It was a very distasteful joke," he told the jury.
"I have no excuse for the comment," he said. But then under further questioning by McGowan, he offered an excuse.
"Ms. Pouncy has engaged in conversations like that before with individuals in a joking way," he said.
Gilley said that when the call was made on March 22, 2010, he needed Preuitt's vote on pro-gambling legislation.
Preuitt, McGregor and seven others are on trial in federal court on charges of buying and selling votes on pro-gambling legislation. The legislation, a proposed constitutional amendment designed to protect electronic bingo casinos from raids, was passed by the Senate on March 30, 2010, but died in the House after the FBI revealed its investigation into Statehouse corruption.
Gilley, Massey and Pouncy have pleaded guilty to offering millions in bribes to legislators to pass the legislation. The two lobbyists are scheduled to testify later in the trial, which is in its fourth week.
He admitted under questioning that he offered Massey a 1 percent financial interest in the Country Crossing casino in Dothan last year if he would not cooperate with government prosecutors, but Massey pleaded guilty in December.
In Gilley's testimony for the prosecution, he said he worked with McGregor to pass the pro-gambling legislation and offered to hold campaign fundraisers with country music singers for legislators who supported the bill. He hyped the concerts as being worth $500,000 each in campaign contributions.
Under questioning by defense lawyers, Gilley admitted that in March 2010, when the Senate was considering the bill, his real estate and entertainment businesses had $160 million in debts. He also acknowledged that his BamaJam outdoor music festival in Enterprise, which attracted top acts like Brooks & Dunn, Taylor Swift and Kid Rock, was never financially successful, and he was broke because his casino had been forced to closed by the governor's gambling task force in early 2010.
Under questioning by other lawyers, Gilley acknowledged that he was $50,000 behind in paying country singer George Jones last year. Gilley said Jones was paid monthly to be a spokesman for Country Crossing, but he was never an investor in Country Crossing, even though his name was on the Possum Holler bed and breakfast at the Dothan attraction.
The defense played a taped call between Gilley and Massey, the lobbyist, in which they discussed using Jones to try to get Preuitt's vote for the pro-gambling bill. In the call, Gilley told Massey to tell Preuitt that Gilley would bring Jones by his Talladega car dealership to buy some trucks. But Gilley admitted under questioning he never took Jones to the dealership and never bought any vehicles from Preuitt.
While the jury was out of the courtroom, the defense lawyer for Country Crossing spokesman Jay Walker, Susan James, called Gilley "a con man" and said her goal was "attacking his veracity" in front of the jury.
McGregor's attorneys tried to show Tuesday that Gilley wasn't working closely with the owner of the closed VictoryLand casino in Shorter.
Under questioning, Gilley admitted that even though McGregor gave him $5 million to promote the gambling legislation, he used it toward construction expenses at Country Crossing.
"It was gone," he told the jury.
He also acknowledged that in one tape-recorded phone call in March 2010, he was trying to get Rick Carter, owner of the Island View Casino in Gulfport, Miss., to invest in Country Crossing, and he told Carter that he and McGregor had differences over strategy on the pro-gambling legislation.
Gilley told Carter that he had told McGregor, "'I promise you this, Milton, we are going to do this with or without you.'"
Gilley tried to defend himself against defense lawyers' criticism by portraying himself as a victim of Montgomery politics.
"I did not instigate any of this and it's continuing to take place today," said Gilley, who will return to the witness stand Wednesday.
Alabama Vote Buying Trial Continues with Gilley
Gilley: Ala. casinos grossing millions on big days
PHILLIP RAWLS, Associated Press
MONTGOMERY, Ala. (AP) — A casino owner who pleaded guilty to bribery testified Monday about how electronic bingo halls had multimillion dollar grosses on big days and how he offered to organize campaign fundraisers with country music celebrities for two indicted state senators in return for their votes to protect the casinos from police raids.
Country Crossing casino developer Ronnie Gilley said he made the offers to state Sen. Harri Anne Smith and former Sen. Jim Preuitt before they helped the Senate pass pro-gambling legislation on March 30, 2010.
"I damn sure support people who have the same views I've got," Gilley said in a phone call with Preuitt that was recorded by the FBI.
Both senators are on trial with seven others on charges of buying and selling votes on the legislation. The bill was a proposed constitutional amendment that needed approval of both the Legislature and voters statewide to protect Gilley's electronic bingo casino in Dothan and others from raids by the former governor's gambling task force.
Gilley testified that the gross take for his three-day opening weekend for his electronic bingo casino in late 2009 was $16 million to $18 million. He said indicted casino owner Milton McGregor told him that his VictoryLand casino in Shorter, which was the state's largest, grossed $21 million on a good day.
He said casino owners had to pay winners and other expenses out of the gross intake.
Gilley's casino operated less than two months before being forced to close by the governor's gambling task force. McGregor's casino also closed last year.
Gilley testified that he was planning a "Democracy Tour" with country music singers to benefit senators who voted yes. He picked the name "Democracy Tour" because of the statewide vote that would have been necessary if the bill hadn't died in the House, dooming his casino.
Asked by prosecutor Louis Franklin how he would finance the tour, Gilley said, "I was broke." But he said McGregor was providing $5 million to promote it.
Prosecutors played in court a recording of a phone call between Smith and Gilley on the day before the Senate vote. In the call recorded by the FBI, Gilley outlined plans for "a big gala event" to help Smith. He didn't say who would appear, but he said it would be bigger than a fundraiser he organized for her on Dec. 8, 2009, where country singers John Anderson and Lorrie Morgan performed.
"I love it," Smith, I-Slocomb, said on the tape.
Gilley testified he spent about $60,000 on booking fees and production costs for the two singers' appearances at the fundraiser. Both had restaurants at Country Crossing bearing their names, but Gilley testified neither knew about his behind-the-scene dealings.
In another tape played in court, Gilley called Smith again after the Senate's vote to discuss the proposed fundraiser, "I'm going to go ahead and schedule it for you," he said.
"Sounds fine," she replied.
Gilley also talked to Preuitt, R-Talladega, in a phone call recorded by the FBI, where he discussed helping him with his campaign.
"We believe in supporting people who support democracy," Gilley told Preuitt.
"I appreciate you," Preuitt told Gilley.
"We're cocked and loaded and we'll be in touch with you next week," Gilley said.
Preuitt dropped his re-election bid before being indicted in October 2010. Smith was re-elected in November despite her indictment.
Outside the courthouse, Smith's husband, Charlie Smith, said he didn't believe Gilley's testimony.
"It is a work of fiction," he said.
Gilley said one of his lobbyists, Jarrod Massey, told him in a recorded phone call that a third indicted legislator, former Democratic Sen. Larry Means of Gadsden, wanted $100,000 to vote for the bill. Means did vote yes and was defeated in November.
In calls played in court and in his testimony, Gilley talked about other ways he used star power to try to pass the bill, including getting singer George Jones to meet with one senator and getting the lead singer for the country group Alabama, Randy Owen of Fort Payne, to call about 10 legislators to try to secure their votes.
Both entertainers appeared in ads promoting the gambling legislation. Jones' name was on the inn at Country Crossing. Owen was supposed to have his name on a family entertainment center that was planned at Country Crossing, but never completed.
Gilley will return to the witness stand Tuesday for a fourth day. In his plea agreement with prosecutors, he is facing a prison sentence of 20 to 27 years, but it could be shortened based on his testimony.
PHILLIP RAWLS, Associated Press
MONTGOMERY, Ala. (AP) — A casino owner who pleaded guilty to bribery testified Monday about how electronic bingo halls had multimillion dollar grosses on big days and how he offered to organize campaign fundraisers with country music celebrities for two indicted state senators in return for their votes to protect the casinos from police raids.
Country Crossing casino developer Ronnie Gilley said he made the offers to state Sen. Harri Anne Smith and former Sen. Jim Preuitt before they helped the Senate pass pro-gambling legislation on March 30, 2010.
"I damn sure support people who have the same views I've got," Gilley said in a phone call with Preuitt that was recorded by the FBI.
Both senators are on trial with seven others on charges of buying and selling votes on the legislation. The bill was a proposed constitutional amendment that needed approval of both the Legislature and voters statewide to protect Gilley's electronic bingo casino in Dothan and others from raids by the former governor's gambling task force.
Gilley testified that the gross take for his three-day opening weekend for his electronic bingo casino in late 2009 was $16 million to $18 million. He said indicted casino owner Milton McGregor told him that his VictoryLand casino in Shorter, which was the state's largest, grossed $21 million on a good day.
He said casino owners had to pay winners and other expenses out of the gross intake.
Gilley's casino operated less than two months before being forced to close by the governor's gambling task force. McGregor's casino also closed last year.
Gilley testified that he was planning a "Democracy Tour" with country music singers to benefit senators who voted yes. He picked the name "Democracy Tour" because of the statewide vote that would have been necessary if the bill hadn't died in the House, dooming his casino.
Asked by prosecutor Louis Franklin how he would finance the tour, Gilley said, "I was broke." But he said McGregor was providing $5 million to promote it.
Prosecutors played in court a recording of a phone call between Smith and Gilley on the day before the Senate vote. In the call recorded by the FBI, Gilley outlined plans for "a big gala event" to help Smith. He didn't say who would appear, but he said it would be bigger than a fundraiser he organized for her on Dec. 8, 2009, where country singers John Anderson and Lorrie Morgan performed.
"I love it," Smith, I-Slocomb, said on the tape.
Gilley testified he spent about $60,000 on booking fees and production costs for the two singers' appearances at the fundraiser. Both had restaurants at Country Crossing bearing their names, but Gilley testified neither knew about his behind-the-scene dealings.
In another tape played in court, Gilley called Smith again after the Senate's vote to discuss the proposed fundraiser, "I'm going to go ahead and schedule it for you," he said.
"Sounds fine," she replied.
Gilley also talked to Preuitt, R-Talladega, in a phone call recorded by the FBI, where he discussed helping him with his campaign.
"We believe in supporting people who support democracy," Gilley told Preuitt.
"I appreciate you," Preuitt told Gilley.
"We're cocked and loaded and we'll be in touch with you next week," Gilley said.
Preuitt dropped his re-election bid before being indicted in October 2010. Smith was re-elected in November despite her indictment.
Outside the courthouse, Smith's husband, Charlie Smith, said he didn't believe Gilley's testimony.
"It is a work of fiction," he said.
Gilley said one of his lobbyists, Jarrod Massey, told him in a recorded phone call that a third indicted legislator, former Democratic Sen. Larry Means of Gadsden, wanted $100,000 to vote for the bill. Means did vote yes and was defeated in November.
In calls played in court and in his testimony, Gilley talked about other ways he used star power to try to pass the bill, including getting singer George Jones to meet with one senator and getting the lead singer for the country group Alabama, Randy Owen of Fort Payne, to call about 10 legislators to try to secure their votes.
Both entertainers appeared in ads promoting the gambling legislation. Jones' name was on the inn at Country Crossing. Owen was supposed to have his name on a family entertainment center that was planned at Country Crossing, but never completed.
Gilley will return to the witness stand Tuesday for a fourth day. In his plea agreement with prosecutors, he is facing a prison sentence of 20 to 27 years, but it could be shortened based on his testimony.
In America, problem gambling affects ~ 15 million
Gambling Addiction
Excessive gambling has become a major problem in the United States. It is estimated that in America alone, problematic gambling affects approximately 15 million people, with more than 3 million of these people being considered severe problem gamblers, gambling addicts or compulsive gamblers. Gambling addiction can lead to severe financial crisis, but it also has a strain on relationships and careers as well. Individuals with gambling addictions are much more likely to suffer from substance abuse disorders and other behavioral addictions. Luckily, problem gambling and gambling addiction are treatable at centers such as Passages Malibu and Passages Ventura.
Problematic or excessive gambling becomes a full blown addiction when the gambler can’t control their impulse to gamble, and they keep repeating their actions even when they know their gambling is hurting themselves or their loved ones. They keep repeating various gambling-related negative and damaging behaviors, no matter the consequences. Compulsive gamblers keep gambling regardless of whether they’re up or down, whether they have lost all their money, or even if they are feeling depressed about their actions. Cognitive behavioral therapy, individual psychotherapy, marriage and family therapy, hypnotherapy and life purpose counseling are just one of the many treatment modalities offered at Passages to help problem gamblers. If you’re addicted to gambling or are continuing to gamble despite serious consequences, Passages can help.
Excessive gambling has become a major problem in the United States. It is estimated that in America alone, problematic gambling affects approximately 15 million people, with more than 3 million of these people being considered severe problem gamblers, gambling addicts or compulsive gamblers. Gambling addiction can lead to severe financial crisis, but it also has a strain on relationships and careers as well. Individuals with gambling addictions are much more likely to suffer from substance abuse disorders and other behavioral addictions. Luckily, problem gambling and gambling addiction are treatable at centers such as Passages Malibu and Passages Ventura.
Problematic or excessive gambling becomes a full blown addiction when the gambler can’t control their impulse to gamble, and they keep repeating their actions even when they know their gambling is hurting themselves or their loved ones. They keep repeating various gambling-related negative and damaging behaviors, no matter the consequences. Compulsive gamblers keep gambling regardless of whether they’re up or down, whether they have lost all their money, or even if they are feeling depressed about their actions. Cognitive behavioral therapy, individual psychotherapy, marriage and family therapy, hypnotherapy and life purpose counseling are just one of the many treatment modalities offered at Passages to help problem gamblers. If you’re addicted to gambling or are continuing to gamble despite serious consequences, Passages can help.
Scribe joins Porirua launch of anti-gambling campaign
Scribe joins Porirua launch of anti-gambling campaign
BY ANDREA O'NEIL
As he once sang, Scribe has been down and out - but the rap star has worked through his struggles and is now helping gamblers break their addictions.
The rapper, real name Malo Luafutu, shared his life story at the launch of a new national anti-gambling campaign in Waitangirua last week.
About 150 people attended the launch of the Ministry of Health-funded campaign, called Choice Not Chance, which encourages families to openly discuss problem gambling and get help. Speakers included associate health minister Peter Dunne and Porirua deputy mayor Liz Kelly.
Recovered gambler Scribe said the campaign's message resonates strongly with him.
"It's your choice, not chance, that determines destiny and I'm a living testament to that."
He described his rough start to life - he was born while his Polynesian Panther father was in jail for drug offences, and his mother was later committed to a mental institution.
A 10-year-old Scribe started gambling under the influence of his grandmother, and by his teens was an alcoholic, a drug addict and was stealing to support his gambling addiction.
It was only when his mother threatened to disown him that he straightened out.
Three months after going clean, Scribe met music producer P-Money and was soon a chart-topping hip-hop musician, cleaning up at 2004's Tui music awards.
"At 23 years old I made New Zealand history," he said.
However, the hip-hop star soon fell into the trap of playing pokies again.
"A lot of people think money solves problems, but in my experience money magnifies your demons."
He describes his mid-twenties as reckless and destructive, and at his low point he pawned his gold records, which generated national media attention.
The loss of his plaques was nothing compared to how gambling isolated Scribe from his family, he said.
"Losing my family through my gambling really was the wake-up call."
Kids who start playing pokies do not realise how addictive they can become, he said.
"This addiction doesn't discriminate. Anyone can fall."
Polynesian and Maori communities are often struggling already, and do not need the extra burden of a gambling problem.
"We've got it hard anyway."
But Scribe believes addicts can turn their life around. "As negative, as eff'd-up as your life may be, you can still do some awesome stuff. It's really up to you, you're the only one that holds yourself back."
BY ANDREA O'NEIL
As he once sang, Scribe has been down and out - but the rap star has worked through his struggles and is now helping gamblers break their addictions.
The rapper, real name Malo Luafutu, shared his life story at the launch of a new national anti-gambling campaign in Waitangirua last week.
About 150 people attended the launch of the Ministry of Health-funded campaign, called Choice Not Chance, which encourages families to openly discuss problem gambling and get help. Speakers included associate health minister Peter Dunne and Porirua deputy mayor Liz Kelly.
Recovered gambler Scribe said the campaign's message resonates strongly with him.
"It's your choice, not chance, that determines destiny and I'm a living testament to that."
He described his rough start to life - he was born while his Polynesian Panther father was in jail for drug offences, and his mother was later committed to a mental institution.
A 10-year-old Scribe started gambling under the influence of his grandmother, and by his teens was an alcoholic, a drug addict and was stealing to support his gambling addiction.
It was only when his mother threatened to disown him that he straightened out.
Three months after going clean, Scribe met music producer P-Money and was soon a chart-topping hip-hop musician, cleaning up at 2004's Tui music awards.
"At 23 years old I made New Zealand history," he said.
However, the hip-hop star soon fell into the trap of playing pokies again.
"A lot of people think money solves problems, but in my experience money magnifies your demons."
He describes his mid-twenties as reckless and destructive, and at his low point he pawned his gold records, which generated national media attention.
The loss of his plaques was nothing compared to how gambling isolated Scribe from his family, he said.
"Losing my family through my gambling really was the wake-up call."
Kids who start playing pokies do not realise how addictive they can become, he said.
"This addiction doesn't discriminate. Anyone can fall."
Polynesian and Maori communities are often struggling already, and do not need the extra burden of a gambling problem.
"We've got it hard anyway."
But Scribe believes addicts can turn their life around. "As negative, as eff'd-up as your life may be, you can still do some awesome stuff. It's really up to you, you're the only one that holds yourself back."
Patrons Unsafe in Casino Valet Parking Area
The Gambling Industry attempts to silence all reporting of assaults that occur on their premises, yet the article below raises the issue of the negligence of Parks to intervene to protect a patron.
Las Vegas boxer Floyd Mayweather sued for assault
Las Vegas, NV (KTNV)- Another lawsuit has been filed against Las Vegas boxer Floyd Mayweather Junior. This time the accusations are related to an assault that allegedly occurred outside the Palms Hotel-Casino last year.
Anthony Cliff, who lives in Clark County, filed a suit Friday in a state court in Las Vegas against Mayweather, his company Mayweather Promotions LLC and others.
According to Cliff's attorneys, Gazda & Tadayon, the incident happened on March 27, 2010, in the valet parking area of the Palms.
Cliff claims that he tried to take the boxer's photo and made some comments about a potential fight for Mayweather, when Mayweather replied that Cliff was disrespecting him and gave the thumbs-down sign to his bodyguards.
That was a "signal for the bodyguards to attack Cliff, which they then did, striking Cliff in the face, knocking, pulling or pushing Cliff to the ground,"' the suit charges.
The suit then claims that Cliff's head struck the pavement and the bodyguards repeatedly kicked him in the back and side.
Mayweather and his company are being sued for assault and battery, intentional infliction of emotional distress and negligent hiring, training, supervision and retention of employees.
The Palms is also being sued for negligence, for failing to have adequate security in the valet parking area and failing to keep Mayweather and his entourage in check.
Mayweather is no stranger to run-ins with the law. Back in 2005, he was convicted in the beating of two women at a Luxor club. He was given a suspended one year jail sentence for that crime. Since then he has also been sued for various other crimes including domestic violence, harassment, grand larceny, and most recently, defamation.
We contacted Mayweather's attorneys but they have not yet responded.
Las Vegas boxer Floyd Mayweather sued for assault
Las Vegas, NV (KTNV)- Another lawsuit has been filed against Las Vegas boxer Floyd Mayweather Junior. This time the accusations are related to an assault that allegedly occurred outside the Palms Hotel-Casino last year.
Anthony Cliff, who lives in Clark County, filed a suit Friday in a state court in Las Vegas against Mayweather, his company Mayweather Promotions LLC and others.
According to Cliff's attorneys, Gazda & Tadayon, the incident happened on March 27, 2010, in the valet parking area of the Palms.
Cliff claims that he tried to take the boxer's photo and made some comments about a potential fight for Mayweather, when Mayweather replied that Cliff was disrespecting him and gave the thumbs-down sign to his bodyguards.
That was a "signal for the bodyguards to attack Cliff, which they then did, striking Cliff in the face, knocking, pulling or pushing Cliff to the ground,"' the suit charges.
The suit then claims that Cliff's head struck the pavement and the bodyguards repeatedly kicked him in the back and side.
Mayweather and his company are being sued for assault and battery, intentional infliction of emotional distress and negligent hiring, training, supervision and retention of employees.
The Palms is also being sued for negligence, for failing to have adequate security in the valet parking area and failing to keep Mayweather and his entourage in check.
Mayweather is no stranger to run-ins with the law. Back in 2005, he was convicted in the beating of two women at a Luxor club. He was given a suspended one year jail sentence for that crime. Since then he has also been sued for various other crimes including domestic violence, harassment, grand larceny, and most recently, defamation.
We contacted Mayweather's attorneys but they have not yet responded.
Jordanian PM escapes corruption indictment in tight vote
Jordanian PM escapes corruption indictment in tight vote
Suha Philip Ma'ayeh
AMMAN // Jordan's parliament yesterday narrowly cleared the prime minister from involvement in a high-profile corruption case involving the licensing of a casino on the eastern shore of the Dead Sea.
Parliament voted 53 to 50 not to indict Marof Bakhit. Ten other members abstained from the impeachment vote and six did not attend the session, according to the official news agency.
On Sunday, a 10-member parliamentary committee accused the prime minister, in a 65-page report, of abuse of power and held him "morally and legally accountable" in a case that has gripped the nation for several months. Sixteen former ministers including one serving cabinet member were also implicated.
The 120-member lower house of parliament began debating the case yesterday ahead of the expected vote.
According to the constitution, parliament is the only body authorised to impeach ministers after securing two-thirds of the house's vote. The casino case dates back to 2007 when Mr Bakhit's government signed an agreement with a British Company, Oasis Holding Investment Ltd, to operate a casino in Sweimeh. The deal was to give the government up to 40 per cent of the revenue. But, under much public pressure, the agreement was put on hold.
Gambling, which is against Islamic law, is banned in Jordan unless the government approves a law that sanctions it. At the time of the agreement, a higher council of tourism in 2007 approved a decision to include gambling as a tourist profession.
But the government violated the tourism law when it did not publish the decision in the Gazette, the government's official record, said Rabie Hamzeh, an independent attorney and an advisor to the ministry of tourism. "The tourism law also specifies that there be licensing procedures for any tourist profession, but this did not take place also," Mr Hamzeh said.
The agreement was also criticised because it requires any dispute be arbitrated in the United Kingdom instead of Jordan.
"Jordanian courts have no jurisdiction over the agreement and the dispute. It should be according to the country's laws. Jordan is a sovereign country," Mr Hamzeh said.
Last week, Mr Bakhit asked for a discussion of the case to be included in an extraordinary session of parliament.
Suha Philip Ma'ayeh
AMMAN // Jordan's parliament yesterday narrowly cleared the prime minister from involvement in a high-profile corruption case involving the licensing of a casino on the eastern shore of the Dead Sea.
Parliament voted 53 to 50 not to indict Marof Bakhit. Ten other members abstained from the impeachment vote and six did not attend the session, according to the official news agency.
On Sunday, a 10-member parliamentary committee accused the prime minister, in a 65-page report, of abuse of power and held him "morally and legally accountable" in a case that has gripped the nation for several months. Sixteen former ministers including one serving cabinet member were also implicated.
The 120-member lower house of parliament began debating the case yesterday ahead of the expected vote.
According to the constitution, parliament is the only body authorised to impeach ministers after securing two-thirds of the house's vote. The casino case dates back to 2007 when Mr Bakhit's government signed an agreement with a British Company, Oasis Holding Investment Ltd, to operate a casino in Sweimeh. The deal was to give the government up to 40 per cent of the revenue. But, under much public pressure, the agreement was put on hold.
Gambling, which is against Islamic law, is banned in Jordan unless the government approves a law that sanctions it. At the time of the agreement, a higher council of tourism in 2007 approved a decision to include gambling as a tourist profession.
But the government violated the tourism law when it did not publish the decision in the Gazette, the government's official record, said Rabie Hamzeh, an independent attorney and an advisor to the ministry of tourism. "The tourism law also specifies that there be licensing procedures for any tourist profession, but this did not take place also," Mr Hamzeh said.
The agreement was also criticised because it requires any dispute be arbitrated in the United Kingdom instead of Jordan.
"Jordanian courts have no jurisdiction over the agreement and the dispute. It should be according to the country's laws. Jordan is a sovereign country," Mr Hamzeh said.
Last week, Mr Bakhit asked for a discussion of the case to be included in an extraordinary session of parliament.
Corruption trial's courtroom reporter falls asleep
Corruption trial's courtroom reporter falls asleep
By John Shryock
MONTGOMERY, AL (WSFA) - The federal government's gambling corruption case took a brief recess Monday afternoon to find a new court reporter.
The assigned reporter, responsible for recording all conversations saved for the court's official record, apparently fell asleep on the job. The reporter's name is unknown.
The judge sent the reporter to see a doctor, but said the man would be fine.
The court took a 20 minute recess around 2:00pm to find a new reporter. It resumed a short time later.
Ronnie Gilley remains on the stand where he's testifying against other defendants in the corruption trial.
The trial is now in its fourth week at the federal courthouse in downtown Montgomery.
By John Shryock
MONTGOMERY, AL (WSFA) - The federal government's gambling corruption case took a brief recess Monday afternoon to find a new court reporter.
The assigned reporter, responsible for recording all conversations saved for the court's official record, apparently fell asleep on the job. The reporter's name is unknown.
The judge sent the reporter to see a doctor, but said the man would be fine.
The court took a 20 minute recess around 2:00pm to find a new reporter. It resumed a short time later.
Ronnie Gilley remains on the stand where he's testifying against other defendants in the corruption trial.
The trial is now in its fourth week at the federal courthouse in downtown Montgomery.
International Raminfications of Las Vegas Sands Corruption
Why gambling companies must act now on new bribery law
OPINION: When US anti-corruption enforcers get their teeth into an industry the effects are felt around the world, including in the UK. The recent announcement of an investigation into a US gambling company means that firms here need to act.
Gambling operators must pay close attention to new anti-corruption laws that will come into force on 1 July, both because of the action against the Las Vegas Sands Corporation and because gambling is a business that attracts corruption regulators' interest.
The gambling industry is heavily regulated and companies commonly have numerous contacts with government officials and in some cases overseas operations in jurisdictions with poor reputations for corruption.
This makes the industry a prime target for investigation, as the Las Vegas Sands Corporation found out earlier this year. It announced in a stock market filing that it had been asked for documents by stock market regulator the Security and Exchange Commission (SEC) and the US Department of Justice. The request was in relation to the Foreign Corrupt Practices Act and is believed to be in relation to the company's activities in Macau.
Why should gambling companies on the other side of the world care? Because the history of anti-corruption enforcement is filled with investigations which start in the United States and end up washing up on our shores.
US investigations into single companies can often spawn sector-wide investigations into entire industries. That then spreads to the UK.
The US and UK regulators frequently share information and co-cooperate as do other jurisdictions such as other EU countries and Russia. This has happened in the oil and gas, pharmaceuticals and medical devices industries.
The consequences of falling foul of one of these investigations are severe. Fines in the US can run into hundreds of millions of dollars. UK penalties tend to be smaller but UK courts have recently signalled that they intend to take a similar approach to US courts in terms of fines and penalties.
In both the US and the UK individuals involved in bribery are likely to be jailed.
Companies should also consider the effects of an investigation on their business. The costs in terms of time and money of dealing with an investigation can dwarf the cost of penalties. The cost to reputation can be incalculable, and falls in share price are a real danger.
The US Foreign & Corrupt Practices Act (FCPA) has worldwide long-arm jurisdiction. It imposes transparency requirements and, broadly speaking, outlaws the bribery of foreign government officials.
The UK Bribery Act owes plenty of its DNA to the FCPA but goes beyond it, prohibiting commercial bribery as well as government bribery; banning facilitation payments (payments sometimes made to speed up a process) and imposing a new strict liability offence of failing to prevent bribery.
The good news is that there is something companies can do now to protect themselves. The Act has a defence for companies that have put in place Adequate Procedures to prevent bribery.
If businesses have these then broadly speaking they, and the senior officers who run them, will be shielded from successful prosecution in the UK for Bribery Act violations.
The UK Ministry of Justice has issued guidance around what constitutes Adequate Procedures, adopting a principles approach. The application of the principles is fleshed out in the guidance issued at the end of March this year.
A key feature requires that businesses put themselves through a risk assessment, essentially looking at their business to identify where their largest corruption risks may lie so that they can adopt and implement specific policies to address that risk.
Why take the chance when the risk of a successful prosecution for a bribery offence can be reduced to zero by taking some simple steps to prevent bribery?
By Barry Vitou, an anti-corruption specialist at Pinsent Masons, the law firm behind OUT-LAW.COM
See: http://www.thebriberyact.com/ for more information on anti-corruption laws. The site is operated by Barry Vitou and other anti-corruption specialists.
OPINION: When US anti-corruption enforcers get their teeth into an industry the effects are felt around the world, including in the UK. The recent announcement of an investigation into a US gambling company means that firms here need to act.
Gambling operators must pay close attention to new anti-corruption laws that will come into force on 1 July, both because of the action against the Las Vegas Sands Corporation and because gambling is a business that attracts corruption regulators' interest.
The gambling industry is heavily regulated and companies commonly have numerous contacts with government officials and in some cases overseas operations in jurisdictions with poor reputations for corruption.
This makes the industry a prime target for investigation, as the Las Vegas Sands Corporation found out earlier this year. It announced in a stock market filing that it had been asked for documents by stock market regulator the Security and Exchange Commission (SEC) and the US Department of Justice. The request was in relation to the Foreign Corrupt Practices Act and is believed to be in relation to the company's activities in Macau.
Why should gambling companies on the other side of the world care? Because the history of anti-corruption enforcement is filled with investigations which start in the United States and end up washing up on our shores.
US investigations into single companies can often spawn sector-wide investigations into entire industries. That then spreads to the UK.
The US and UK regulators frequently share information and co-cooperate as do other jurisdictions such as other EU countries and Russia. This has happened in the oil and gas, pharmaceuticals and medical devices industries.
The consequences of falling foul of one of these investigations are severe. Fines in the US can run into hundreds of millions of dollars. UK penalties tend to be smaller but UK courts have recently signalled that they intend to take a similar approach to US courts in terms of fines and penalties.
In both the US and the UK individuals involved in bribery are likely to be jailed.
Companies should also consider the effects of an investigation on their business. The costs in terms of time and money of dealing with an investigation can dwarf the cost of penalties. The cost to reputation can be incalculable, and falls in share price are a real danger.
The US Foreign & Corrupt Practices Act (FCPA) has worldwide long-arm jurisdiction. It imposes transparency requirements and, broadly speaking, outlaws the bribery of foreign government officials.
The UK Bribery Act owes plenty of its DNA to the FCPA but goes beyond it, prohibiting commercial bribery as well as government bribery; banning facilitation payments (payments sometimes made to speed up a process) and imposing a new strict liability offence of failing to prevent bribery.
The good news is that there is something companies can do now to protect themselves. The Act has a defence for companies that have put in place Adequate Procedures to prevent bribery.
If businesses have these then broadly speaking they, and the senior officers who run them, will be shielded from successful prosecution in the UK for Bribery Act violations.
The UK Ministry of Justice has issued guidance around what constitutes Adequate Procedures, adopting a principles approach. The application of the principles is fleshed out in the guidance issued at the end of March this year.
A key feature requires that businesses put themselves through a risk assessment, essentially looking at their business to identify where their largest corruption risks may lie so that they can adopt and implement specific policies to address that risk.
Why take the chance when the risk of a successful prosecution for a bribery offence can be reduced to zero by taking some simple steps to prevent bribery?
By Barry Vitou, an anti-corruption specialist at Pinsent Masons, the law firm behind OUT-LAW.COM
See: http://www.thebriberyact.com/ for more information on anti-corruption laws. The site is operated by Barry Vitou and other anti-corruption specialists.
Sunday, June 26, 2011
Protections cut by budget shortfalls
Budget woes eroding help for gamblers
Fewer safeguards in place for the compulsive
Written by
Kirk Moore Staff Writer
With New Jersey scrambling to prop up its gaming industry against competition from other states, advocates who support treatment for compulsive gamblers say there are fewer safeguards in place – and more danger they will get into serious trouble.
“There are no inspectors on the casino floors anymore,” said Donald F. Weinbaum, executive director of the Council on Compulsive Gambling of New Jersey. “The Casino Control Commission used to be a point of contact for people with problems or people who have concerns with what they are seeing, but it’s not clear where they can go now.”
New Jersey government’s prolonged budget crisis is shaking safety nets out of the gaming industry, Weinbaum said. Members of Gamblers Anonymous, the support group and fellowship for compulsive gamblers and their families, say they worry for people vulnerable to what psychiatrists define as a “nonchemical addiction.”
Without treatment, experts say up to 30 percent of seriously addicted gamblers may break the law to get money for feeding their habit. Gamblers Anonymous members suggest it’s a motive behind many cases of suburban white-collar crime, like embezzlements.
“My drug of gambling was the casinos and the lottery,” Stephanie Iacopino said as she recounted her arrest and imprisonment for diverting money from a church charity. Now released on the state’s Intensive Supervision Program, Iacopino tells her cautionary tale to gambler support groups and high school students.
Her father had bet on sports, and she started at age 19 when New Jersey’s state lottery got going. “I thought, this is fun,” Iacopino said. During the 1980s heyday of Atlantic City casinos, with their liberal comps, she started gambling there.
“I never felt anything better,” Iacopino recalled of her first trip. “My drug was poker slots.”
But as her addiction built, Iacopino said, “I lied. I lied all the time.”
Her money problems got Iacopino into serious trouble in 1991, but her family helped pull her back from the brink and she began attending Gamblers Anonymous.
“I was clean for a couple of years,” she said. But even after suffering strokes, she began playing lotteries again, enlisting a friend to buy her tickets. She returned to Gamblers Anonymous meetings, fighting a back-and-forth struggle.
A devout Catholic, Iacopino and her husband began doing volunteer charity work with the St. Vincent DePaul Society of St. Martha’s Church in Point Pleasant. Her husband became treasurer, with an ATM card for making withdrawals on behalf of needy families.
In July 2008, Iacopino began taking the card to pay for gambling in Atlantic City, stealing $18,000 to gamble in almost 10 months. In 2010, she pleaded guilty to second-degree theft and was sentenced to three years in prison, but got an early release to the ISP program with an obligation to repay the money.
The state could do more to help at little cost, advocates say.
“In prison there’s no GA,” Iacopino said, although several female prisoners she met at the Edna Mahan Correctional Facility for Women in Clinton had wound up there because of their gambling addictions. Prison administrators and social workers see compulsive gambling as “a thing with men only,” she said.
“They’re nice people … but they have no program,” she said. “They need GA for women.”
Counseling there is focused on the role of alcohol or narcotics with inmates’ problems, said another woman who did time at Clinton and was released into the ISP probation that includes nightly curfews and check-ins with officers.
Treatment and group counseling for alcohol and narcotics addiction are among a host of social services at the Mahan facility, but there are no Gamblers Anonymous services there, said Deirdre Fedkenheuer, a spokeswoman for the state Department of Corrections.
The department does not have a prison population breakdown that shows how many inmates have gambling problems, but independent research shows the numbers are considerable.
“Surveys of Gamblers Anonymous members show one-half to two-thirds of them have done something illegal connected to their gambling,” said Henry Lesieur, a clinical psychologist with the Rhode Island Gambling Treatment Program at Rhode Island Hospital, and a national expert on pathological gambling. “A national study of the pathological gaming population showed 30 percent of them have been arrested.”
It’s simply not true that gambling tends to be a male obsession, Lesieur said.
“There’s no difference between men and women,” said Lesieur, whose own prison surveys find gambling problems in about 15 percent of those populations. One survey he did in New Jersey prisons returned a 13 percent figure.
Psychiatric manuals group compulsive gambling under “disorders of impulse control,” Lesieur said. But also “you find very high rates of other problems” besetting gamblers, including alcohol and drug abuse, anxiety, and symptoms of clinical depression that appear in as many as three out of four compulsive gamers, he said.
“There is not enough recognition that problem gambling is equal-opportunity among women as well as for men,” said Weinbaum of the New Jersey state council. There are differences in gaming preferences among women and men, he said; table games like poker attract more men while slots are preferred by women.
But for compulsive gamblers the effect is all the same, and Weinbaum said advocates are trying to educate corrections and social workers about betting obsessions among women.
“There is a significant correlation” of gambling and white-collar crime, Weinbaum said. “Bettors who have exhausted all legal sources, family sources, what is left is illegal sources.
“There may be an intention of paying it back after a big win,” he added. “But most gamblers just plow their winnings right back into play.”
“Gambling problems are treatable. Anyone who needs help can get it,” Weinbaum said. Family members trying to get help for a loved one often need the help that support and fellowship groups offer.
Compulsive gamblers can register for “self-exclusion” from casinos, putting them on a list that means any winnings will be withheld if they have a relapse. But in Atlantic City, “for a long time they haven’t been looking,” said Iacopino, who took up self-exclusion from New Jersey casinos, and Pennsylvania gaming halls for good measure.
“Self-exclusion is a good area to look at. We have a little over 1,000 people on the list, and that should probably be higher compared to other states. Pennsylvania has 2,000 people,” Weinbaum said. “Clearly, people (on the self-exclusion list) are getting in the doors. They’re only getting intercepted if they have a winning.”
With the gaming industry battered by years of increasing competition from neighboring states and the recession, advocates see protections have been in retreat for an estimated 350,000 New Jerseyans prone to pathological gambling based on what’s known about that population.
“Our position is every casino needs a training program” so workers can spot and get help for compulsive gamers, Weinbaum said. “One sign is you have an player who never leaves the table, never takes a break, even to go to the bathroom.”
Compulsive gamblers call their obsession “the action.” It’s being in the game, whether carding or pulling the slot machine, sports bets or the lottery. On a casino floor, they say, it’s not unusual for them to put in a 14- or 15-hour session before their money and energy are finally drained.
“They exhibit a lot of emotion, extreme upset,” Weinbaum said. “A problem gambler in action is going to play and play until they’re out of money.”
Even in recovery, gamblers are tortured. Iacopino says she avoids watching local television news programs so she does not see the daily lottery numbers.
Before her last relapse and arrest, one more mistake was visiting relatives in Nevada and staying in a casino hotel, even when she stayed away from the slot machine floor, Iacopino said: “You’re in these places and you can hear it, bing-bing-bing-bing-bing.”
Now, she says, “I have three great nieces and one great nephew in Nevada, but I know I can never go there again.”
Fewer safeguards in place for the compulsive
Written by
Kirk Moore Staff Writer
With New Jersey scrambling to prop up its gaming industry against competition from other states, advocates who support treatment for compulsive gamblers say there are fewer safeguards in place – and more danger they will get into serious trouble.
“There are no inspectors on the casino floors anymore,” said Donald F. Weinbaum, executive director of the Council on Compulsive Gambling of New Jersey. “The Casino Control Commission used to be a point of contact for people with problems or people who have concerns with what they are seeing, but it’s not clear where they can go now.”
New Jersey government’s prolonged budget crisis is shaking safety nets out of the gaming industry, Weinbaum said. Members of Gamblers Anonymous, the support group and fellowship for compulsive gamblers and their families, say they worry for people vulnerable to what psychiatrists define as a “nonchemical addiction.”
Without treatment, experts say up to 30 percent of seriously addicted gamblers may break the law to get money for feeding their habit. Gamblers Anonymous members suggest it’s a motive behind many cases of suburban white-collar crime, like embezzlements.
“My drug of gambling was the casinos and the lottery,” Stephanie Iacopino said as she recounted her arrest and imprisonment for diverting money from a church charity. Now released on the state’s Intensive Supervision Program, Iacopino tells her cautionary tale to gambler support groups and high school students.
Her father had bet on sports, and she started at age 19 when New Jersey’s state lottery got going. “I thought, this is fun,” Iacopino said. During the 1980s heyday of Atlantic City casinos, with their liberal comps, she started gambling there.
“I never felt anything better,” Iacopino recalled of her first trip. “My drug was poker slots.”
But as her addiction built, Iacopino said, “I lied. I lied all the time.”
Her money problems got Iacopino into serious trouble in 1991, but her family helped pull her back from the brink and she began attending Gamblers Anonymous.
“I was clean for a couple of years,” she said. But even after suffering strokes, she began playing lotteries again, enlisting a friend to buy her tickets. She returned to Gamblers Anonymous meetings, fighting a back-and-forth struggle.
A devout Catholic, Iacopino and her husband began doing volunteer charity work with the St. Vincent DePaul Society of St. Martha’s Church in Point Pleasant. Her husband became treasurer, with an ATM card for making withdrawals on behalf of needy families.
In July 2008, Iacopino began taking the card to pay for gambling in Atlantic City, stealing $18,000 to gamble in almost 10 months. In 2010, she pleaded guilty to second-degree theft and was sentenced to three years in prison, but got an early release to the ISP program with an obligation to repay the money.
The state could do more to help at little cost, advocates say.
“In prison there’s no GA,” Iacopino said, although several female prisoners she met at the Edna Mahan Correctional Facility for Women in Clinton had wound up there because of their gambling addictions. Prison administrators and social workers see compulsive gambling as “a thing with men only,” she said.
“They’re nice people … but they have no program,” she said. “They need GA for women.”
Counseling there is focused on the role of alcohol or narcotics with inmates’ problems, said another woman who did time at Clinton and was released into the ISP probation that includes nightly curfews and check-ins with officers.
Treatment and group counseling for alcohol and narcotics addiction are among a host of social services at the Mahan facility, but there are no Gamblers Anonymous services there, said Deirdre Fedkenheuer, a spokeswoman for the state Department of Corrections.
The department does not have a prison population breakdown that shows how many inmates have gambling problems, but independent research shows the numbers are considerable.
“Surveys of Gamblers Anonymous members show one-half to two-thirds of them have done something illegal connected to their gambling,” said Henry Lesieur, a clinical psychologist with the Rhode Island Gambling Treatment Program at Rhode Island Hospital, and a national expert on pathological gambling. “A national study of the pathological gaming population showed 30 percent of them have been arrested.”
It’s simply not true that gambling tends to be a male obsession, Lesieur said.
“There’s no difference between men and women,” said Lesieur, whose own prison surveys find gambling problems in about 15 percent of those populations. One survey he did in New Jersey prisons returned a 13 percent figure.
Psychiatric manuals group compulsive gambling under “disorders of impulse control,” Lesieur said. But also “you find very high rates of other problems” besetting gamblers, including alcohol and drug abuse, anxiety, and symptoms of clinical depression that appear in as many as three out of four compulsive gamers, he said.
“There is not enough recognition that problem gambling is equal-opportunity among women as well as for men,” said Weinbaum of the New Jersey state council. There are differences in gaming preferences among women and men, he said; table games like poker attract more men while slots are preferred by women.
But for compulsive gamblers the effect is all the same, and Weinbaum said advocates are trying to educate corrections and social workers about betting obsessions among women.
“There is a significant correlation” of gambling and white-collar crime, Weinbaum said. “Bettors who have exhausted all legal sources, family sources, what is left is illegal sources.
“There may be an intention of paying it back after a big win,” he added. “But most gamblers just plow their winnings right back into play.”
“Gambling problems are treatable. Anyone who needs help can get it,” Weinbaum said. Family members trying to get help for a loved one often need the help that support and fellowship groups offer.
Compulsive gamblers can register for “self-exclusion” from casinos, putting them on a list that means any winnings will be withheld if they have a relapse. But in Atlantic City, “for a long time they haven’t been looking,” said Iacopino, who took up self-exclusion from New Jersey casinos, and Pennsylvania gaming halls for good measure.
“Self-exclusion is a good area to look at. We have a little over 1,000 people on the list, and that should probably be higher compared to other states. Pennsylvania has 2,000 people,” Weinbaum said. “Clearly, people (on the self-exclusion list) are getting in the doors. They’re only getting intercepted if they have a winning.”
With the gaming industry battered by years of increasing competition from neighboring states and the recession, advocates see protections have been in retreat for an estimated 350,000 New Jerseyans prone to pathological gambling based on what’s known about that population.
“Our position is every casino needs a training program” so workers can spot and get help for compulsive gamers, Weinbaum said. “One sign is you have an player who never leaves the table, never takes a break, even to go to the bathroom.”
Compulsive gamblers call their obsession “the action.” It’s being in the game, whether carding or pulling the slot machine, sports bets or the lottery. On a casino floor, they say, it’s not unusual for them to put in a 14- or 15-hour session before their money and energy are finally drained.
“They exhibit a lot of emotion, extreme upset,” Weinbaum said. “A problem gambler in action is going to play and play until they’re out of money.”
Even in recovery, gamblers are tortured. Iacopino says she avoids watching local television news programs so she does not see the daily lottery numbers.
Before her last relapse and arrest, one more mistake was visiting relatives in Nevada and staying in a casino hotel, even when she stayed away from the slot machine floor, Iacopino said: “You’re in these places and you can hear it, bing-bing-bing-bing-bing.”
Now, she says, “I have three great nieces and one great nephew in Nevada, but I know I can never go there again.”
Match Fixing and Organized Crime
Interesting new book about sports betting and match fixing:
A much wider net
Saad Shafqat InpaperMagzine
Given the recent spot-fixing setbacks, you would think the whole mess of cricket corruption is centred in Pakistan, but in fact the problem is much wider. This does not minimise the culpability of Pakistan’s errant cricketers. But it is important to understand the true scope of the wider tragedy that is eroding the spirit of this beloved game.
It is instructive to see the various corrupt behaviours of different teams displayed side by side on the same canvas.
A much wider net
Saad Shafqat InpaperMagzine
Given the recent spot-fixing setbacks, you would think the whole mess of cricket corruption is centred in Pakistan, but in fact the problem is much wider. This does not minimise the culpability of Pakistan’s errant cricketers. But it is important to understand the true scope of the wider tragedy that is eroding the spirit of this beloved game.
It is instructive to see the various corrupt behaviours of different teams displayed side by side on the same canvas.
Alabama Gambling Corruption Trial
Week three includes sparks, surprises
Written by
Sebastian Kitchen
Three more key witnesses took the stand, including brazen and foul-mouthed Country Crossing developer Ronnie Gilley, in the third week of a federal corruption case alleging gambling interests worked together to bribe state legislators. Prosecutors also, for the first time, played conversations secretly taped by the FBI of targets in their investigation, including Gilley.
VictoryLand owner Milton McGregor and eight other defendants are charged with trying to buy and sell support for legislation that would have helped McGregor, Gilley and other casino operators in the state.
Gilley already has pleaded guilty in the case.
The following is a summary of the action and testimony in court during the week.
Monday
Lobbyists for McGregor delivered two $2,500 checks to state Rep. Barry Mask, R-Wetumpka, the same day that the casino owner said he would find significant help for the legislator if he supported pro-gambling legislation. Mask went to authorities after he was contacted by McGregor for the first time in about two years about the same time someone from VictoryLand called trying to buy all of the tickets to a fundraiser.
In a conversation he recorded with FBI agents in his office Feb. 15, 2010, Mask asked how much help he could expect and asked McGregor if he would have anyone attending the fundraiser that night.
McGregor said in a recorded conversation the next day that he sent lobbyists Bob Geddie and Ben Patterson to the fundraiser in Tallassee. Geddie is a defendant in the case.
McGregor also told Mask that legislators who did not support people's right to vote on the legislation would have a political "price to pay" in the 2010 primaries and general election.
Mask said he opened a separate account with ASE Credit Union at the request of the FBI. He said the money is still there and he has never spent it.
McGregor attorney Joe Espy questioned Mask about receiving money from lobbyist and former Lt. Gov. Steve Windom, who lobbied for the Poarch Band of Creek Indians, and about Mask receiving $10,000 to $50,000 a year for referring another client to Windom. Espy said that client, Computer Associates, does work for the state and that Mask as a legislator continues to receive money for referring that company even though it continued to do work for the state. Mask said he was not doing any work for the money, but said receiving the fee for referring someone was standard practice in business and that he referred that company before he was a legislator.
(Page 2 of 6)
Espy alleged that along with more than $50,000 in salary as a state representative, Mask receives more than $97,000 running the Elmore County Economic Development Authority, which he helped found and which receives almost $300,000 a year in funding from Elmore County. He said Mask was a double dipper. Mask said the authority also receives private funding and is a 501(c)(3) (a tax-exempt nonprofit organization).
Espy also said Mask was pushing a 4 percent lodging tax for Elmore County in the Legislature and that the proceeds would go to the economic development authority to pay salaries, including his own.
U.S. District Judge Myron Thompson did not allow defense attorneys to question Mask in front of the jury about the two government-funded checks or his support for the lodging tax because they were not relevant to the current case.
Espy asked Mask if during the course of 608 days, the time of the alleged conspiracy, he had less than 40 minutes of telephone calls and no face to face meetings with McGregor. Mask said, "I don't recall any face to face meetings."
Espy also questioned Mask about playing poker with his friends even though he has bashed gambling.
The prosecution filed a motion Monday to try to stop questioning from the defense on whether former state Rep. Benjamin Lewis' appointment to a district judgeship in Houston County was political.
Lewis, a government witness who went to authorities and agreed to record conversations for the FBI, was appointed by then-Gov. Bob Riley. Defense attorneys questioned if Riley appointed Lewis to the judgeship because of his willingness to cooperate in the corruption investigation.
Prosecutors have said Lewis was cooperating with the FBI 13 months before that judgeship became open.
Key Democrats pushed for Senate Republicans to ask state Sen. Scott Beason, R-Gardendale, to resign and to strip him of his chairmanship of a powerful committee after racially insensitive comments he made were revealed a week earlier in the case.
(Page 3 of 6)
Tuesday
Mask recorded phone conversations for the FBI, but also said he was given a recording device he could put in his pocket and turn on. "I don't think I ever used the body recorder at all," Mask said. " ... I never encountered a conversation where I needed to turn it on."
Lewis Gillis, an attorney for defendant and state Sen. Quinton Ross, D-Montgomery, attempted to show Tuesday morning that Ross had no communication with Mask about gambling during this time, and that Ross supporting gambling and receiving money even though he did not have an opponent were not illegal and not uncommon in state politics.
Debbie Moore, who organized the fundraiser for Mask, testified that someone from VictoryLand had called and tried to purchase all of the $50 tickets to the Mask fundraiser. She also testified that two men she did not recognize came to the fundraiser and brought two $2,500 checks. She said she would not be able to identify those men.
Cheryl Farrow, office manager and bookkeeper for Fine Geddie & Associates, testified that the ledger showing which of their clients contributed to which candidates was changed to show that the two $2,500 checks did not come from McGregor, but two corporate clients, Great Southern Wood and Protective Life Corp. She said on the stand that she would have written those checks to Mask at the request of Geddie, one of the owners of the Fine Geddie & Associates lobbying firm. Geddie is a lobbyist for McGregor. Farrow said the original entry was a mistake so she corrected it. Prosecutors questioned changing the ledger and who pushed for it to be changed. An attorney for Geddie pointed out that Farrow did not black out the changes in the ledger, but instead crossed them out where people could still read them.
Lewis, the former legislator, took the stand for the first time Tuesday.
Wednesday
Lewis said he went to local law enforcement in his community after he felt Gilley tried to bribe him at a dinner at Garrett's restaurant in Montgomery in March 2009. They connected him with the FBI, and he agreed to record conversations.
(Page 4 of 6)
Lewis said Gilley and his supporters let it be known that if Lewis supported their project they could double the support he received in his last campaign, where he spent more than $200,000.
The prosecution played tapes Lewis recorded of Gilley and state Sen. Harri Anne Smith of Slocomb, a defendant.
Beason, according to Lewis, had no reason to record him, but recorded him by mistake. In the conversation between them that Lewis said was recorded mistakenly, Lewis referred to Smith as "stupid," said he felt sorry for her, and said she had a "good argument" for why she changed her mind on gambling legislation. Lewis said he meant that she made some stupid decisions. He said he considered Smith a friend and that she was intelligent. Lewis became emotional when he was asked about the conversation.
Lewis said FBI agents asked him to record Smith, Gilley, lobbyist Claire Austin, and then-state Rep. Terry Spicer, D-Elba.
Beason, who also recorded conversations for the FBI, testified that Smith told him following that dinner that Country Crossing supporters could help him with as much as $500,000 for a campaign for lieutenant governor if he supported the project. Lewis said Beason told him about that conversation. He said Beason told him that he was told House members who supported gambling legislation would receive $200,000 to $250,000 for their campaigns with senators receiving $500,000.
Smith has said that conversation never happened.
Lewis said he recorded about 20 conversations.
Thursday
Gilley, in his first day on the stand, said he initiated a project in 2007 he called Little Nashville that he wanted to locate close to Enterprise in Coffee County. With his development projects, he used country music stars to help promote residential living to retirees. There were lenders and investors in place for the project, Gilley said. Then, he said, the real estate market collapsed.
Gilley said, at the encouragement of someone in the lieutenant governor's office, they decided to look at adding electronic bingo, which he said he did not know anything about, to the project. As they looked at it, Gilley said the electronic gambling and not the residential housing would finance the project.
(Page 5 of 6)
Gilley said other states and other counties were pursuing the project, including Lowndes, Houston and Russell counties. They decided to locate the project, which they renamed Country Crossing, near Dothan in Houston County, which he said they did because there was a constitutional amendment already there allowing bingo.
Gilley said he did not meet with Smith prior to her backing off her legislation that he said would have killed his project. He said he did not ask her to change her position.
Legislative analyst Ray Crosby did not originally report the $3,000 he received each month from McGregor to the Alabama Ethics Commission, which has forms that public officials and employees who make more than $50,000 must fill out with information on their income, debt, property and investments. Crosby did not include the income on his 2008 and 2009 reports, but filed an addendum in August 2010 that added that income.
An accountant for McGregor, Lynn Byrd, testified that she wrote and McGregor signed 24 checks for $3,000 to Crosby. He received $3,000 each month from May 2008 through April 2010. Prosecutors argued that Crosby did not report that income until the investigation became public.
Lewis said he did not remember Beason, his friend and roommate, using the term "aborigine" in a conversation Beason recorded of them and said he considered Beason a "person of integrity." In response to Lewis, Beason referred to supporters of Greenetrack casino in west Alabama as "aborigines."
Friday
Gilley said, after concerns from McGregor that Country Crossing would hurt his business by 22 percent, they reached an agreement in which McGregor provided millions in loans for the project and would receive a portion of the profit. Originally, McGregor was supposed to receive 14 percent, but that increased to 20 percent as McGregor contributed more.
Gilley talked about McGregor lending $5 million, $2.8 million and $500,000. The money was used for building, to push pro-gambling legislation, and to be able to pay employees at times.
(Page 6 of 6)
Gilley said he used some of that money to pay for a fundraiser for Smith's 2010 Senate re-election campaign. He spent $217,000 in in-kind services for the fundraiser in Enterprise, which featured entertainment by singers Lorrie Morgan and John Anderson.
Gilley also talked about giving Spicer, who was then a state legislator from Elba, a box of cash. Spicer had allegedly asked for $50,000 or he would create a roadblock for the gambling legislation. Gilley said he gave him $20,000.
Smith called Gilley, in a conversation taped by the FBI, and asked for $400,000 for her 2010 Senate campaign. Gilley, according to testimony and wiretapped conversations, worked to get the money to her through political action committees $200,000 at a time. Gilley said he and his supporters probably put $600,000 toward
Smith's re-election campaign.
Gilley said he, through his lobbyist Jarrod Massey, directed $40,000 to Smith for her 2008 race for Congress. He said she came by, thanked him and said, "whatever you need, I'm yours." She had returned a previous check from Gilley over concerns about it coming directly from him.
Gilley said that it was Lewis that tried to solicit that money from him at Garrett's and that he told people about it after the dinner.
Gilley said, while at Garrett's, that Smith asked if he and McGregor would be willing to contribute $500,000 to Beason's campaign. "I said absolutely," Gilley said.
Bill Baxley, an attorney for lobbyist Tom Coker, moved to dismiss a count of wire fraud in the indictment. Thompson said he will not dismiss a count in the middle of the prosecution's case, but said the sides should be ready to debate after the prosecution has presented its case.
Prosecutors indicated they were hesitant to call Massey, who also has pleaded guilty, to the stand, but decided they would.
For another perspective:
Aborigines – New Stars in an Old Show Aborigines – New Stars in an Old Show
The State Legislative circus moved under a new tent last week as Alabama’s gambling corruption trial took center ring in Myron Thompson’s federal court.
The trial relates to some 2010 shenanigans between gambling lobbyists and a few state legislators.
Written by
Sebastian Kitchen
Three more key witnesses took the stand, including brazen and foul-mouthed Country Crossing developer Ronnie Gilley, in the third week of a federal corruption case alleging gambling interests worked together to bribe state legislators. Prosecutors also, for the first time, played conversations secretly taped by the FBI of targets in their investigation, including Gilley.
VictoryLand owner Milton McGregor and eight other defendants are charged with trying to buy and sell support for legislation that would have helped McGregor, Gilley and other casino operators in the state.
Gilley already has pleaded guilty in the case.
The following is a summary of the action and testimony in court during the week.
Monday
Lobbyists for McGregor delivered two $2,500 checks to state Rep. Barry Mask, R-Wetumpka, the same day that the casino owner said he would find significant help for the legislator if he supported pro-gambling legislation. Mask went to authorities after he was contacted by McGregor for the first time in about two years about the same time someone from VictoryLand called trying to buy all of the tickets to a fundraiser.
In a conversation he recorded with FBI agents in his office Feb. 15, 2010, Mask asked how much help he could expect and asked McGregor if he would have anyone attending the fundraiser that night.
McGregor said in a recorded conversation the next day that he sent lobbyists Bob Geddie and Ben Patterson to the fundraiser in Tallassee. Geddie is a defendant in the case.
McGregor also told Mask that legislators who did not support people's right to vote on the legislation would have a political "price to pay" in the 2010 primaries and general election.
Mask said he opened a separate account with ASE Credit Union at the request of the FBI. He said the money is still there and he has never spent it.
McGregor attorney Joe Espy questioned Mask about receiving money from lobbyist and former Lt. Gov. Steve Windom, who lobbied for the Poarch Band of Creek Indians, and about Mask receiving $10,000 to $50,000 a year for referring another client to Windom. Espy said that client, Computer Associates, does work for the state and that Mask as a legislator continues to receive money for referring that company even though it continued to do work for the state. Mask said he was not doing any work for the money, but said receiving the fee for referring someone was standard practice in business and that he referred that company before he was a legislator.
(Page 2 of 6)
Espy alleged that along with more than $50,000 in salary as a state representative, Mask receives more than $97,000 running the Elmore County Economic Development Authority, which he helped found and which receives almost $300,000 a year in funding from Elmore County. He said Mask was a double dipper. Mask said the authority also receives private funding and is a 501(c)(3) (a tax-exempt nonprofit organization).
Espy also said Mask was pushing a 4 percent lodging tax for Elmore County in the Legislature and that the proceeds would go to the economic development authority to pay salaries, including his own.
U.S. District Judge Myron Thompson did not allow defense attorneys to question Mask in front of the jury about the two government-funded checks or his support for the lodging tax because they were not relevant to the current case.
Espy asked Mask if during the course of 608 days, the time of the alleged conspiracy, he had less than 40 minutes of telephone calls and no face to face meetings with McGregor. Mask said, "I don't recall any face to face meetings."
Espy also questioned Mask about playing poker with his friends even though he has bashed gambling.
The prosecution filed a motion Monday to try to stop questioning from the defense on whether former state Rep. Benjamin Lewis' appointment to a district judgeship in Houston County was political.
Lewis, a government witness who went to authorities and agreed to record conversations for the FBI, was appointed by then-Gov. Bob Riley. Defense attorneys questioned if Riley appointed Lewis to the judgeship because of his willingness to cooperate in the corruption investigation.
Prosecutors have said Lewis was cooperating with the FBI 13 months before that judgeship became open.
Key Democrats pushed for Senate Republicans to ask state Sen. Scott Beason, R-Gardendale, to resign and to strip him of his chairmanship of a powerful committee after racially insensitive comments he made were revealed a week earlier in the case.
(Page 3 of 6)
Tuesday
Mask recorded phone conversations for the FBI, but also said he was given a recording device he could put in his pocket and turn on. "I don't think I ever used the body recorder at all," Mask said. " ... I never encountered a conversation where I needed to turn it on."
Lewis Gillis, an attorney for defendant and state Sen. Quinton Ross, D-Montgomery, attempted to show Tuesday morning that Ross had no communication with Mask about gambling during this time, and that Ross supporting gambling and receiving money even though he did not have an opponent were not illegal and not uncommon in state politics.
Debbie Moore, who organized the fundraiser for Mask, testified that someone from VictoryLand had called and tried to purchase all of the $50 tickets to the Mask fundraiser. She also testified that two men she did not recognize came to the fundraiser and brought two $2,500 checks. She said she would not be able to identify those men.
Cheryl Farrow, office manager and bookkeeper for Fine Geddie & Associates, testified that the ledger showing which of their clients contributed to which candidates was changed to show that the two $2,500 checks did not come from McGregor, but two corporate clients, Great Southern Wood and Protective Life Corp. She said on the stand that she would have written those checks to Mask at the request of Geddie, one of the owners of the Fine Geddie & Associates lobbying firm. Geddie is a lobbyist for McGregor. Farrow said the original entry was a mistake so she corrected it. Prosecutors questioned changing the ledger and who pushed for it to be changed. An attorney for Geddie pointed out that Farrow did not black out the changes in the ledger, but instead crossed them out where people could still read them.
Lewis, the former legislator, took the stand for the first time Tuesday.
Wednesday
Lewis said he went to local law enforcement in his community after he felt Gilley tried to bribe him at a dinner at Garrett's restaurant in Montgomery in March 2009. They connected him with the FBI, and he agreed to record conversations.
(Page 4 of 6)
Lewis said Gilley and his supporters let it be known that if Lewis supported their project they could double the support he received in his last campaign, where he spent more than $200,000.
The prosecution played tapes Lewis recorded of Gilley and state Sen. Harri Anne Smith of Slocomb, a defendant.
Beason, according to Lewis, had no reason to record him, but recorded him by mistake. In the conversation between them that Lewis said was recorded mistakenly, Lewis referred to Smith as "stupid," said he felt sorry for her, and said she had a "good argument" for why she changed her mind on gambling legislation. Lewis said he meant that she made some stupid decisions. He said he considered Smith a friend and that she was intelligent. Lewis became emotional when he was asked about the conversation.
Lewis said FBI agents asked him to record Smith, Gilley, lobbyist Claire Austin, and then-state Rep. Terry Spicer, D-Elba.
Beason, who also recorded conversations for the FBI, testified that Smith told him following that dinner that Country Crossing supporters could help him with as much as $500,000 for a campaign for lieutenant governor if he supported the project. Lewis said Beason told him about that conversation. He said Beason told him that he was told House members who supported gambling legislation would receive $200,000 to $250,000 for their campaigns with senators receiving $500,000.
Smith has said that conversation never happened.
Lewis said he recorded about 20 conversations.
Thursday
Gilley, in his first day on the stand, said he initiated a project in 2007 he called Little Nashville that he wanted to locate close to Enterprise in Coffee County. With his development projects, he used country music stars to help promote residential living to retirees. There were lenders and investors in place for the project, Gilley said. Then, he said, the real estate market collapsed.
Gilley said, at the encouragement of someone in the lieutenant governor's office, they decided to look at adding electronic bingo, which he said he did not know anything about, to the project. As they looked at it, Gilley said the electronic gambling and not the residential housing would finance the project.
(Page 5 of 6)
Gilley said other states and other counties were pursuing the project, including Lowndes, Houston and Russell counties. They decided to locate the project, which they renamed Country Crossing, near Dothan in Houston County, which he said they did because there was a constitutional amendment already there allowing bingo.
Gilley said he did not meet with Smith prior to her backing off her legislation that he said would have killed his project. He said he did not ask her to change her position.
Legislative analyst Ray Crosby did not originally report the $3,000 he received each month from McGregor to the Alabama Ethics Commission, which has forms that public officials and employees who make more than $50,000 must fill out with information on their income, debt, property and investments. Crosby did not include the income on his 2008 and 2009 reports, but filed an addendum in August 2010 that added that income.
An accountant for McGregor, Lynn Byrd, testified that she wrote and McGregor signed 24 checks for $3,000 to Crosby. He received $3,000 each month from May 2008 through April 2010. Prosecutors argued that Crosby did not report that income until the investigation became public.
Lewis said he did not remember Beason, his friend and roommate, using the term "aborigine" in a conversation Beason recorded of them and said he considered Beason a "person of integrity." In response to Lewis, Beason referred to supporters of Greenetrack casino in west Alabama as "aborigines."
Friday
Gilley said, after concerns from McGregor that Country Crossing would hurt his business by 22 percent, they reached an agreement in which McGregor provided millions in loans for the project and would receive a portion of the profit. Originally, McGregor was supposed to receive 14 percent, but that increased to 20 percent as McGregor contributed more.
Gilley talked about McGregor lending $5 million, $2.8 million and $500,000. The money was used for building, to push pro-gambling legislation, and to be able to pay employees at times.
(Page 6 of 6)
Gilley said he used some of that money to pay for a fundraiser for Smith's 2010 Senate re-election campaign. He spent $217,000 in in-kind services for the fundraiser in Enterprise, which featured entertainment by singers Lorrie Morgan and John Anderson.
Gilley also talked about giving Spicer, who was then a state legislator from Elba, a box of cash. Spicer had allegedly asked for $50,000 or he would create a roadblock for the gambling legislation. Gilley said he gave him $20,000.
Smith called Gilley, in a conversation taped by the FBI, and asked for $400,000 for her 2010 Senate campaign. Gilley, according to testimony and wiretapped conversations, worked to get the money to her through political action committees $200,000 at a time. Gilley said he and his supporters probably put $600,000 toward
Smith's re-election campaign.
Gilley said he, through his lobbyist Jarrod Massey, directed $40,000 to Smith for her 2008 race for Congress. He said she came by, thanked him and said, "whatever you need, I'm yours." She had returned a previous check from Gilley over concerns about it coming directly from him.
Gilley said that it was Lewis that tried to solicit that money from him at Garrett's and that he told people about it after the dinner.
Gilley said, while at Garrett's, that Smith asked if he and McGregor would be willing to contribute $500,000 to Beason's campaign. "I said absolutely," Gilley said.
Bill Baxley, an attorney for lobbyist Tom Coker, moved to dismiss a count of wire fraud in the indictment. Thompson said he will not dismiss a count in the middle of the prosecution's case, but said the sides should be ready to debate after the prosecution has presented its case.
Prosecutors indicated they were hesitant to call Massey, who also has pleaded guilty, to the stand, but decided they would.
For another perspective:
Aborigines – New Stars in an Old Show Aborigines – New Stars in an Old Show
The State Legislative circus moved under a new tent last week as Alabama’s gambling corruption trial took center ring in Myron Thompson’s federal court.
The trial relates to some 2010 shenanigans between gambling lobbyists and a few state legislators.
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