Individuals Convicted of Illegal Gambling Cooperating in Police Investigation

Four individuals convicted of involvement in an illegal gambling operation could have their prison sentences reduced if they continue to help in a federal investigation of more than two dozen people, including a number of former police officers.^[1]

The four individuals, James Otis Henderson, his brother Barron Sloan Henderson, Harold Steve Hartness and Jerry Pennington, were sentenced to prison terms varying between one and six years. If they contribute to the federal investigation each could get a lower sentence according to U.S. District Court Judge Thomas Selby Ellis.^[2]

According to federal prosecutors the men were connected to Henderson Amusements, Inc., which made at least $14 million over seven years through illegal gambling operations in western North Carolina.^[3]

The police officers alleged to have been involved include former Buncombe County Sheriff Bobby Medford and three former deputies. Medford is scheduled to go on trial for corruption charges next month. The three former deputies have been arrested, and all are accused of enabling and protecting video poker operators.^[4]

In a videotaped conversation, Henderson told Rutherford County Sheriff Jack Conner, who was working undercover as part of the federal investigation, that sheriffs in nearby counties were taking bribes. In addition, Henderson told the sheriff about different payment plans, stating that one sheriff asked for $100 per machine per month for protection, while another sought monthly payments.^[5]

Henderson was sentenced to six years in prison for running an illegal gambling business and bribing law enforcement officers. His brother received a sentence of a year in prison for conspiracy to commit money laundering and running an illegal gambling business.^[6]

Hartness, who was hired by Henderson Amusements to serve as a private investigator, was sentenced to three and a half years in prison for witness tampering after he coached a witness on how to lie to the grand jury.^[7]

Pennington, who faces five years in federal prison for bribery, told the court, ''I have seriously damaged this community by undermining its confidence in law enforcement.''^[8]

Under 18 U.S.C. § 1955, it is an offense to conduct, finance, manage, supervise, direct or own an illegal gambling business with five or more persons^[9] and running continuously for at least thirty days or grossing more than $2,000 in a single day.^[10] An illegal gambling business is partially defined, as one that ''is in violation of the law of the State or political subdivision in which it is conducted.''^[11] Furthermore, the statute provides for the forfeiture of gambling devices; the courts have extended this to include real property.^[12]

Federal criminal attorney Douglas McNabb has previously discussed all of the federal crimes noted in this blog. These can be found here.

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[1] The Associated Press, Four Video Poker Defendants Cooperating in Investigation, The Asheville Citizen-Times, Feb. 14, 2008 (available at http://www.rockymounttelegram.com.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Sanabria v. United States, 437 U.S. 54 (1978).
[10] United States v. Febus, 218 F.3d 784, 790 (7th Cir. 2000).
[11] 18 U.S.C. § 1955(b)(1)(i) (2008).
[12] United States v. The South Half of Lot 7 and Lot 8, 910 F.2d 488 (8th Cir. 1990).