Georgia: Negotiations continuing in case of illegal casinos

Negotiations continuing in case of illegal casinos
By Joe Johnson - Athens Banner-Herald

Attorneys for a Winder businessman and three area social clubs that ran illegal casinos continue to negotiate with federal prosecutors before they are sentenced.

Sentencing was scheduled for Wednesday in U.S. District Court in Athens.

Page Pate, who represents the Loyal Order of Moose Lodge 262 in Winder and Veterans of Foreign Wars Post 2872 in Athens, said he and prosecutors hadn’t yet reached an agreement on how much restitution his clients will have to make, if any.

Those social clubs and a Moose lodge in Elberton pleaded guilty in May to one count each of violating federal gambling laws.

Raya Gonchikar, owner of Big Don’s and the Universal Game Room in Winder that leased about 30 gambling machines from Athens-based Heritage Amusement Co., pleaded guilty to one gambling count the same day.

They admitted that they conspired with Heritage Amusement to rent video poker machines from the amusement company for illegal gambling and split the profits with the company.

So far, seven people and the three social clubs have pleaded guilty to federal gambling charges as part of an ongoing investigation.

No one affiliated with Heritage Amusement has been charged, but defendants entered into plea bargains in which they agreed to cooperate with prosecutors; some attorneys said their clients already have testified before a federal grand jury.

U.S. District Judge C. Ashley Royal has sentenced five businessmen each to one year on probation and levied fines of $2,000 or less.

By entering into agreements, the convenience store owners avoided maximum penalties of five years in prison and fines of $250,000.

The government could try to recoup some or all of the money that was made through the illegal use of video poker machines, which is why Pate said he continues to negotiate with prosecutors.

“If their argument is that money was made unlawfully with the machines, the government’s position is some or all of that money should be forfeited,” Pate said. “I’m not sure that’s going to happen in our case, we’re just trying to reach an agreement.”

The sentencing hearing for his clients has been rescheduled for Sept. 7, Pate said.