Hollywood Casino used for drug money laundering

Short North Posse gang used casino to launder drug money, indictment says


View SlideshowChris Russell | Dispatch

The arrests of those accused of being members of the Short North Posse might lead to new charges for more-violent crimes, Police Chief Kimberley Jacobs said.

 

 

By Kathy Lynn Gray

The Columbus DispatchThursday December 12, 2013

 

Ringleaders of a violent gang that Columbus police have battled for decades used the Hollywood Casino on the West Side to launder nearly $1 million of their drug-trafficking proceeds, a federal indictment against Short North Posse members revealed yesterday.

The indictment was unsealed as federal, state and local law-enforcement officers and agents fanned out across central Ohio and West Virginia to arrest 22 gang members on federal drug-trafficking and gun charges.

By 1 p.m., 16 were in custody. This morning, a 17th indicted person was arrested. Officers continued to search for the others as the first group had initial hearings in federal courts in Columbus and West Virginia. Bond hearings begin today.

The charges were the result of a yearlong investigation into drug dealing by the posse, a gang that operates out of the Weinland Park neighborhood and has been a thorn in the side of Columbus law enforcement since at least the 1990s.

“The idea here is to cut off the heads, and we believe that we’ve done that,” Assistant U.S. Attorney Dave DeVillers said yesterday. Investigators think the arrests will “whittle down” drug supplies in the area.

Millions of dollars were involved in the drug operation, which used Columbus as its hub and essentially was “traditional organized crime,” DeVillers said. He called the arrests phase one of an operation dubbed “Get Shorty” by federal officials.

Columbus Police Chief Kimberley Jacobs said posse members were “armed and dangerous,” but arrests had been made without incident so far. Several of those indicted are linked to more-violent crimes, she said.

Franklin County Prosecutor Ron O’Brien said law enforcement hopes the drug arrests will help police solve other crimes.

“We think this is step one in a process to get to the violent conduct that’s going on in addition to the drug offenses,” O’Brien said.

The posse controls drug trafficking in an area of the Weinland Park neighborhood bounded by 11th, Grant and 5th avenues and N. High Street. It was called the largest and most-violent drug-dealing gang in 1995 when local and federal authorities tried to shut it down.

Federal and local officials have made multiple arrests over the years. Forty-six members and associates were indicted in 1995 by a federal grand jury. Columbus police and federal agents charged 10 posse members in 2006 after undercover agents infiltrated the gang.

Nineteen posse members were arrested in a roundup in 2010 after an 18-month Columbus police investigation.

Some of those charged yesterday had been picked up previously, and some are the “sons, daughters, uncles, aunts and brothers” of those involved in the gang in the past, DeVillers said.

Still at large yesterday afternoon was one of the ringleaders, Jermonte Fletcher, also known as “ Beans” or “Chin.” Fletcher, 31, of 5638 Wellington Woods Blvd. on the East Side, is charged with 44 counts.

His criminal record includes charges of attempted murder in 2005, pleaded down to felonious assault, and drug trafficking in 2002, both in Franklin County.

His mother, also described as a key figure, was among those arrested yesterday: Lutricia D. Fletcher-Rippy, 53, of 6394 Busch Blvd., Apt. 4, on the North Side. She pleaded guilty to charges of attempted arson in 2001 and attempted possession of drugs in 1993.

The 78-count indictment charged 21 people with illegal activity from Jan. 1, 2011, to last Thursday.

All are charged with conspiring to distribute cocaine, oxycodone, crack cocaine and marijuana. Some are charged with gun possession, money laundering and interstate travel to support racketeering enterprises.

According to the indictment, Fletcher and Byron J. Truss, 32, of 1204 Arkwood Ave. on the East Side, would purchase thousands of dollars worth of casino chips at Hollywood Casino using drug-trafficking proceeds and then exchange them later for cash.

Truss pleaded guilty in 2002 to involuntary manslaughter in connection with a 2001 drug-related shooting.

A separate indictment charged Daquan M. Tyson, 35, on eight drug and gun counts. No address was immediately available for Tyson, who was indicted separately because he also was being investigated in another case.

Both Tyson and Truss were in custody yesterday.

Of the 22 indicted, seven are women, two are from Bexley, one is from Canal Winchester, one is from East Liverpool in eastern Ohio, and three are from West Virginia. The rest are from Columbus.

http://www.dispatch.com/content/stories/local/2013/12/11/drug-busts.html


                                                                                                                                                                                      

Hollywood Casino Columbus: Casino cheater gets 2 years for 3 crimes

Casino cheater gets 2 years for 3 crimes
By John Futty

The Columbus DispatchWednesday August 14, 2013

 

A 40-year-old Reynoldsburg man was sentenced to two years in prison yesterday after pleading guilty to cheating at the Hollywood Casino Columbus and to unrelated charges of cocaine possession and illegally possessing a gun.

Arthur S. Murray of 6997 Treebourne Dr. reached a plea agreement with prosecutors on all three cases in Franklin County Common Pleas Court. The sentence, imposed by Judge Pat Sheeran, was recommended by defense attorneys and prosecutors as part of the agreement.

Murray’s prison stay will be shortened by the 242 days he has spent in jail since his arrest.

Murray was among the first casino customers to be charged with casino-gaming offenses after the business opened on the West Side in October. Assistant Prosecutor Kimberly Bond told the judge that Murray was playing blackjack on the evening of Oct. 28 and was captured on surveillance video as he added or removed chips from his bets after the cards were dealt.

He was already awaiting trial on a drug charge from a June 1, 2011, traffic stop in which police found crack cocaine in a car he was driving, Assistant Prosecutor Carol Farnese said. In January, Murray was indicted on robbery and weapons charges after a woman called police to say that he and others stole her purse at gunpoint.

What the judge called “difficulty” with evidence in the robbery case prompted prosecutors to dismiss the robbery charges in exchange for a guilty plea to a charge of possessing a weapon despite a previous felony drug conviction.

Murray, represented by W. Martin Midian on the gun case and Philip Churchill on the casino and drug cases, told the judge he was sorry for the offenses. “This will never happen again, your honor,” he said.


http://www.dispatch.com/content/stories/local/2013/08/13/casino_cheating.html

Ohio: Fighting over crumbs

Monday, Dec. 24, 2012

$30M from casinos may not be shareable

Library, cities and townships have asked county to share casino taxes, but it might not be legal.

 

By Tiffany Y. Latta

Local cities and townships that want a share of casino money from Clark County government may face an uphill battle.

The County Commissioners Association of Ohio has raised questions about whether counties can legally give municipalities money unless it’s for a specific project or service, such as funding roads.

“There is a serious legal question if the county can simply give money to other political subdivisions through an appropriation,” CCAO Director Larry Long wrote in a memo sent to county leaders with “talking points” on revenue sharing requests.

The Hollywood Casino Toledo, Horseshoe Casino Cleveland and the Hollywood Casino Columbus combined have brought in more than $293 million in total revenues. So far the casinos have sent more than $59 million in taxes to the state, with about $30 million of that designated for Ohio’s 88 counties and eight largest cities.

Clark County has received more than $360,000 from the casinos as of late October, including a single payout that month of more than $239,000. Champaign County has received more than $104,000.

The memo to county leaders comes months after the New Carlisle Public Library requested $50,000 and New Carlisle, Bethel Twp. and Springfield also asked for a share of the county’s casino money.

Municipalities and townships say the money is needed because of local government fund cuts and other reductions as a result of the 2012 state budget.

Several townships have asked for a share of casino money, Ohio Township Association Director Matthew DeTemple said, but his organization hasn’t taken an issue on the matter.

But he said because state cuts have hit smaller communities hard, legislatures have acknowledged that there is a need to redistribute local government funds.

“There’s no harm in asking, but there’s also no legal obligation for them to do that,” DeTemple said.

Clark County Administrator Nathan Kennedy said the county has no plans to spend casino revenue or distribute it to area municipalities and other entities for at least a year because current casino revenue estimates are unreliable.

“I just don’t think it’s prudent. It doesn’t mean no, it just means not now,” Kennedy said.

Long’s memo reiterates that point, saying the financial performance of casinos are already “significantly less than anticipated.”

“The value of receiving casino revenues is extremely speculative. We remain critically concerned with this revenue’s reliability and performance. And the limited experience we do have suggest we are well found in our concerns,” Long wrote.

Long also advised officials to obtain a legal ruling from a prosecutor before sharing any casino money and to remind municipalities of the services county governments pay for, such as the county jail, mental health and human services.

He also said voters approved casino revenue allocations to counties and schools, and any change would require an amendment to the state Constitution, an option township supporters say they aren’t currently pursuing.

The Hollywood Casino Columbus, which opened Oct. 8., brought in more than $18 million in it’s first month and more than $20 million in revenue in November.

Counties receive four payments annually from casinos, with the first distributed this past July. The next payment for the county is at the end of January. School districts will receive two casino payments per year, with the first coming at the end of January

Revenues from casinos in Toledo and Cleveland have dropped since June, said Long from the county commissioners association, and he speculated that all of the casinos will likely see a decline when racinos — slot machines at race tracks — open. He also said counties are “under a threat” to lose additional local government funds in the 2013 state budget.

No one wants a fight between smaller communities and counties, Long said, but instead want the entities to fight to restore money cut in the last state budget.

“We all got cut. All of us got the double whammy. We understand the problems they have … A lot of small municipalities and townships are hurting. We’d love to see the restoration of some of that funding, but we won’t know until February,” Long said.

http://www.springfieldnewssun.com/news/news/local-govt-politics/30m-from-casinos-may-not-be-shareable/nTcrt/

Jump in crime around new casino expected, sheriff says

Jump in crime around new casino expected, sheriff says

By Allison Manning

The Columbus DispatchSunday December 2, 2012

 

Deputy sheriffs have responded to an uptick in crime in western Franklin County in the six weeks since the Hollywood Casino Columbus opened.

The casino, at 200 Georgesville Rd., is in Columbus but abuts areas patrolled by the county sheriff’s office.

Columbus police say incidents there have been unremarkable, but Sheriff Zach Scott said the increase his deputies have seen was expected.

“If the population increases, crime increases,” Scott said.

In the roughly 20-square-mile area just west of the casino, deputies took 206 reports, including 126 assaults, in the casino’s first 44 days. During the same period last year, deputies took 162 reports, including 43 assault reports.

But assaults were on the rise even before the casino opened, as compared with last year.

Since the casino opened, there also have been increases in robberies, from nine to 14, and motor-vehicle thefts, from six to 11.

Burglary numbers stayed the same, and car break-ins dropped steeply, from 66 to 15.

Penn National Gaming, which owns the casino, doesn’t release attendance numbers, so it’s not known how many more people visit the area daily. But the state’s largest casino has 3,000 slot machines, 78 table games, 30 poker tables, four restaurants and a 10,000-square-foot events center.

“That activity out there brings a lot of attention,” Scott said. “And when you bring attention, it brings people and it brings incidents.”

When requesting additional deputies this year, Scott had cited the casino’s opening and an expected increase in crime. County commissioners agreed in part, and a new class of 30 deputies is to begin training in January.

After Ohio’s first casino opened in downtown Cleveland on May 15, city police responded to 80 reports of offenses in nearby districts — mostly thefts, misdemeanor assaults and narcotics offenses.

That was up from 62 reports in April.

By June, reports of crimes dropped to 56 and stayed around 80 during the next three months.

Franklin Township Police Chief Jim Timko said his nine officers and sergeant haven’t seen any “increase in business” so far near the new Columbus casino.

“But it’s too soon to tell, based on only six weeks,” Timko said. “So we’re going to be looking at the evaluation in the long term rather than in the short term.”

He, like Scott, asked for two more officers to help with the expected increase in workload. The township trustees have not yet decided whether to grant the request.

Columbus police haven’t seen a significant amount of crime in or around the casino, according to Sgt. Rich Weiner, a police spokesman.

Penn National pays for several Columbus police officers to work special duty 12 hours a day at the casino, which is within the city’s jurisdiction. The officers have arrest powers.

Police recorded 40 runs to 200 Georgesville Rd. between the casino’s opening and Nov. 25. Runs don’t necessarily mean a report was filed or an arrest was made, and they include requests for backup, car crashes, 911 hang-ups and other minor issues.

The most-frequent call is to respond to a disturbance — drunks fighting, patrons angry because they were kicked out of the casino and other problems.

“We see incidents much worse than these at other special-duty details,” Weiner said. “Here, typically, you’re just having disputes. We’re just there to keep the peace.”

http://www.dispatch.com/content/stories/local/2012/12/02/casino-crime.html

2 locals among several indicted in casino crimes

Nov 29, 2012

LANCASTER — A Pickerington man and a Canal Winchester man were among 10 people indicted for crimes committed at the Hollywood Casino in Columbus.

Thomas M. Collins III, 25, of Pickerington, was charged with six counts of cheating while playing craps. Metin Karasalih, 42, of Canal Winchester, was charged with three counts of cheating at blackjack.

The men were indicted by a Franklin County grand jury and face felony charges.

According to a news release from the Ohio Casino Control Commission, the crimes were committed between Oct. 15 and Nov. 8. The casino opened Oct. 8.

The other men, all from Central Ohio, also face felony charges stemming from cheating at table games including blackjack, craps, roulette, poker and baccarat, the release said. The incidents all were unrelated.



http://www.lancastereaglegazette.com/article/20121129/NEWS01/311290017/2-locals-among-several-indicted-casino-crimes

Ohio: Not Enough Revenue In Spite of Promises

Promising to pave the streets with gold and flooding the state with $$$$ to convince Ohio residents to support Predatory Gambling, the reality is revealed - overstated revenues are inadequate....much as in Massachusetts.

Casino revenue welcome, but not enough

Report says Marion County to get $1.2 million

Written by Ben Lanka
CentralOhio.com

The opening of the new Hollywood Casino in Columbus today will mean not only another regional entertainment option, but also much-needed tax revenues for cash-strapped governments.

Yet even when all four Ohio casinos are up and fully operating, the taxes generated won't come close to plugging the holes created through state cuts, according to a report released this week from Policy Matters Ohio.

The Cleveland-based liberal research organization reported that local governments will receive $227 million in casino-based revenue annually once all four are operating, which is expected to happen next year after the Cincinnati casino opens. Those revenues, however, don't come close to replacing the nearly $1 billion in state revenues cut from the state's 2010-11 budget compared to its previous one.

"Casino revenue is nowhere near sufficient to restore cutbacks in the state budget and answer Ohio's needs," said Zach Schiller, research director of Policy Matters and author of the report.

Schiller also noted that he believed his group's revenue projections were optimistic despite being smaller than those released this summer by the County Commissioners Association of Ohio. That report estimated the casinos would generate $460.2 million in tax revenues compared to just less than $400 million for the Policy Matters report.  [Overstated projections!]

The state constitution requires the state receive a tax equal to 33 percent of gross casino revenues.

Slightly more than half of that money is split among the state's counties based on population. The money goes only to the county government and is typically not split among other local units. Cities of more than 80,000 people, however, split those proceeds with their county.

About a third of the total revenue goes to public school districts with the remainder split among the Ohio State Racing Commission [taxpayer subsidies for the DEAD Horse Racing Industry], the Casino Control Commission, the treatment of problem gambling, law enforcement training, and the four casino host cities.

Marion County is projected to receive $1.2 million annually from the casinos, according to the Policy Matters report. The summer report predicted $1.3 million annually for the county.

The state and counties really don't know what revenue they will get from the casino, said John Leutz, senior policy analyst with the County Commissioners' Association of Ohio. He said the association can't give a concrete number for counties to use for budgeting, so it would be wise to be conservative with the estimates.

"We're not counting eggs or chickens at all yet," he said.

Leutz said the association also was concerned with state revenue cuts, especially as responsibilities for county governments have increased.

http://www.marionstar.com/article/20121008/NEWS01/210080301/Casino-revenue-welcome-not-enough

Revenue from Ohio casinos not enough

Report: Gap comes from $1B in cuts to 2010-11 state budget

http://www.lancastereaglegazette.com/article/20121008/NEWS01/210080302/Revenue-from-Ohio-casinos-not-enough

Ohio: What's a few more gambling addicts sucked dry?

From Bill Kearney --

Massachusetts ‘GAMING’ Future

ASSOCIATED PRESS - October 2, 2012 - Ohio gambling survey gives pre-casino picture

COLUMBUS, Ohio -- About 250,000 Ohio adults, just less than 3 percent, are problem gamblers or at risk of gambling problems as casinos open around the state, a figure that's expected to rise as casinos and racetrack slots proliferate in the state.
...

The statistic comes from a first-of-its-kind survey released Monday by the state's addiction services agency.

Read more: http://www.goerie.com/apps/pbcs.dll/article?AID=2012310029972

 

 

 

 

 

 

COLUMBUS, Ohio -- About 250,000 Ohio adults, just less than 3 percent, are problem gamblers or at risk of gambling problems as casinos open around the state, a figure that's expected to rise as casinos and racetrack slots proliferate in the state.

The statistic comes from a first-of-its-kind survey released Monday by the state's addiction services agency.

Casino Control Commission Chairwoman JoAnn Davidson said the poll marks a starting point for state policymakers as they begin to regulate four new casinos -- in Cleveland, Toledo, Columbus and Cincinnati -- and new slots-like video lottery terminals at seven horse racing tracks.

"So we have a clear picture of where we started in Ohio, and as these casinos come on line, then we're going to have something to measure it against," Davidson said.

The Toledo and Cleveland casinos opened in May, and a Columbus casino opens Monday. Cincinnati's casino is scheduled to open in the spring.

The review, conducted with help from Kent State University, found only 6 percent of Ohioans who gamble say their primary venue now is casinos today. Lottery and other scratch-off games are the preferred game for 72 percent of Ohioans who wager. Eleven percent play dice, craps or poker in a noncasino setting.

Results will be used in about four years to identify pockets of need around the state as they arise, and to make the best use of the 2 percent of casino proceeds that are being directed to tackle gambling addiction.

 

 

Columbus, Ohio: Preparing for Crime

Columbus, Ohio • Sep 08, 2012

Casino policing details not all ironed out

By Josh Jarman

The Columbus DispatchSaturday September 8, 2012

Enlarge Image

Brooke L aVALLEY | DISPATCH

 

Jo Ann Davidson, chairwoman of the Ohio Casino Control Commission, officiates a swearing-in ceremony for undercover officers.

With a month before opening day, law-enforcement officials still are working out how to handle policing in and around the new Hollywood Casino.

Those close to the discussions say those details will be settled before the casino’s scheduled opening on Oct. 8. But questions remain about shared responsibility for crimes that cross jurisdictions and the use of off-duty officers in the casino.

Also undetermined is what will happen should the state’s new gaming-enforcement agents arrest someone on casino grounds. There is no plan for who transports that person to jail or who pays should that person need medical attention.

Franklin County Sheriff Zach Scott said that concern was first raised during a meeting of law-enforcement and Ohio Casino Control Commission officials in May, but no agreements have been reached during subsequent meetings.

“It’s a big issue,” Scott said. “If the casino authority arrests someone, how do they get them to my jail? The city is going to say, ‘You catch ’em, you clean ’em.’  ”

Columbus Deputy Chief Richard Bash said the city doesn’t transport prisoners for other jurisdictions because of liability issues. He wants bad guys to know that they’ll figure it out, though, if the need should arise.

“If someone is there and they have to go to jail, they’ll go to jail,” he said, adding, “even if I have to put them on the back of my bike.”

Karen Huey, enforcement director for the control commission, said she understands that details such as prisoner transportation still need to be worked out, but it’s not the commission’s first priority because it hasn’t been a major issue in Cleveland and Toledo, the first two cities to open casinos.

In those casinos, the state’s Bureau of Criminal Identification and Investigation polices gambling for the commission. In Columbus, the commission will have its own officers; the first class of the state’s gaming-enforcement agents was sworn in yesterday.

Because those officers will deal mostly with gambling-related crime such as cheating or collusion, it’s unusual for the commission’s agents to have to make an immediate arrest, said Matt Schuler, the commission’s executive director.

In most instances, the person will be served with a summons or a case will be built with more investigation and the person later indicted, he said.

The situation in Columbus is unique because so many jurisdictions touch the casino property, which was annexed into the city from Franklin Township. While Columbus police have jurisdiction over anything that happens that’s not gambling-related on casino property, Franklin Township police and the sheriff’s office share jurisdiction in most adjacent areas.

That’s why bringing everyone to the table is so important, Bash said. He said a meeting next week among casino-commission employees, local law enforcement, casino representatives and city and county government officials will attempt to hammer out some of the last-minute concerns.

Columbus police already have said they will not hire any more officers specifically for casino enforcement. Scott’s office is preparing to ramp up patrols in the area soon after the casino opens.

The sheriff got permission to start a new class of deputies this summer, and the Franklin County commissioners on Tuesday are expected to approve buying 11 new patrol cars, mostly for casino-area enforcement.

Casino representatives confirmed yesterday that they will be hiring off-duty law-enforcement officers to work at the casino, at least initially. How many and where they will come from has not yet been determined, said Bob Tenenbaum, a Penn National spokesman.

Before that announcement, Bash said having off-duty officers there to handle security helps because it means an immediate response when there’s an assault or other nongambling crime.


http://www.dispatch.com/content/stories/local/2012/09/08/casino-policing-details-not-all-ironed-out.html