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19 sites raided in bingo-scam probe
Task force says money from games diverted, illegal payments made
By Jim DeBrosse
Dayton Daily News
Wednesday, January 07, 2004
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| JAN UNDERWOOD/DAYTON DAILY NEWS |
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A TASK FORCE raided the South Dayton Bingo Hall, 3444 Kettering Blvd., on Tuesday, as part of an ongoing investigation into an operation that diverted gambling earnings from charities.
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An organized-crime task force coordinated by the Ohio Attorney General's office raided 19 locations in Montgomery and Greene counties Tuesday in an ongoing investigation of what authorities call a charity bingo scam.
The task force seized cash, instant bingo tickets, gambling equipment, computers and financial records at homes, businesses and bingo parlors.
Moraine Police Lt. Tracy Harpster called the raids part of "a very long-term investigation. We're just scratching the surface. These guys controlled a lot of games in Montgomery County."
In a prepared statement Tuesday, Attorney General Jim Petro said bingo operators tricked players by pretending to support a charity. "Most of the gambling profits were directed to the operators, not to charities. Those involved in this operation simply set up a charitable front to conduct a gambling venture for their own personal gain," Petro said.
Bank accounts also were frozen, but no charges or arrests have been made.
The raids appeared to be focused on private schools, now defunct, at the South Dayton, Moraine Lyceum school complex, 3500-3578 Kettering Blvd., Moraine. The schools were supported by bingo games.
Subpoenas were served also at Shopkeepers Bingo, 3994 Salem Ave., Trotwood; and at bingo supplier, Mr. Bingo, 2711 Lance Drive, Moraine. Other search warrants were served at residences in Kettering, Dayton, Centerville, Xenia and Miamisburg. State figures from 2002 show Moraine Lyceum and South Dayton Schools led the county in instant bingo sales that year at $874,278 and $726,816 respectively.
The year-long investigation that led to Tuesday's raid was extensive, law enforcement authorities said.
"The Moraine Police Division has devoted hundreds of hours of investigative work into these illegal gambling operations,? Moraine Police Chief Tom Schenck said. "The operators and administrators of these bingo games are capitalizing on innocent people in the name of charity. These are serious crimes with real victims that demand serious attention from our criminal justice system.?
Petro's Ohio Organized Crime Investigations Commission includes Harpster and Detective Sgt. Craig Richardson from the Moraine Police Division, the Ohio Department of Public Safety's Investigative Unit and Sue Dolby of the Attorney General's Charitable Law Section.
Sgt. Gary Abicht of the Lorain County Sheriff's office, Jim Lynsky of the Lorain County Prosecutor's office and the Lakewood Police Department provided investigative assistance. In addition, several Dayton-area law-enforcement agencies assisted in executing Tuesday's search warrants.
Harpster said the investigation here piggy-backed on an investigation that began three years ago in Lorain County, where more than 140 search warrants were executed in February 2002.
That investigation resulted in federal indictments of 25 individuals or entities on charges of illegal gambling, conspiracy and money laundering. In addition, more than 60 state indictments were issued.
Harpster said the bingo operators in Montgomery and Greene counties diverted millions over three years to private companies set up to siphon off the majority of bingo earnings into their own pockets.
Under Ohio law, all bingo profits must go to the charities they support.
In addition, Harpster said, the operators paid 15 to 20 workers at each bingo site "under the table." Ohio law forbids payment to anyone working at a bingo parlor.
Ohio state coffers have reaped a small windfall from a new gambling reform law that closed storefront bingo parlors this year and tightened regulation of the estimated $2 billion charity gaming industry.
The state will take in an estimated $5.2 million in license application fees from bingo charities this year — 52 times the $100,000 received in 2002. Harpster said all of the bingo parlors in the raid had state licenses.
Neighbors aware of the raid at the South Dayton School complex had mixed reactions. An employee at a nearby printing plant, who asked not to be identified, said the weekend bingo games were a nuisance with overflow parking spilling into his own company's lot.
"You come by on a Saturday night, this place is packed," he said. "They leave whiskey bottles all over the parking lot." The bingo hall at the school complex has seating for 500 to 600 players.
But Rick Voltz, the owner of a soup and sandwich stand next to the school complex, said he was saddened by the raid.
"What the hell is bingo doing to hurt anyone in the community?" Voltz said.
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