http://www.startribune.com/stories/1405/3800399.html
2 bar owners indicted on gambling charges
Paul Gustafson, Star Tribune
Published April 3, 2003
St. Paul bar owners Walter G. Awada and Gary A. Erickson were indicted Wednesday on federal gambling and money laundering charges in connection with what authorities called a large sports bookmaking operation.
The indictment alleges that Awada, owner of Awada's on Plato on the West Side, and Erickson, owner of Erick's Bar on the East Side, conspired to conduct an illegal gambling business with alleged bookmaker Douglas A. Sabby.
The bar owners allowed Sabby, 57, of Vadnais Heights, to operate his sports bookmaking operation in their bars and assisted him in receiving and paying off bets, the indictment alleges. Awada, who owns three area bars, and Erickson also are alleged to have helped Sabby launder gambling money by cashing checks for him. In addition to those three men, 11 other people have been charged.
U.S. Attorney Tom Heffelfinger said the size of the gambling ring was "amazing." The indictment states that Sabby at times would receive about $1 million a month in wagers and that a bettor known as "Junior" paid Sabby $853,200 in lost wagers between June 1997 and January 2002.
Awada cashed at least 12 checks from Junior totaling $60,000 for Sabby, while Erickson cashed two checks totaling $10,000 for him, the indictment states. In all, 49 checks totaling $245,000 were cashed by various bar owners for Sabby, authorities said.
Heffelfinger said Sabby "could not have engaged in this size of an operation, especially handling all those checks, without the cooperation of many other people."
Earl Gray, an attorney representing Awada and Erickson, said the bar owners have done nothing wrong. Sabby was a regular customer whom Awada and Erickson have known for years, Gray said, and they simply cashed checks for him, a service they offer to other customers as well.
"They [prosecutors] may have an indictment, but they have to prove my clients knew these checks came from bookmaking proceeds," he said. "I've never heard of a bookmaker being paid by check, so how is the bar owner supposed to know a check he's cashing is gambling proceeds?"
Gray denied that his clients shared any gambling proceeds with Sabby. He noted that the indictment states that Awada and Erickson shared the gambling proceeds through Sabby's regular payments for food, drink and other items.
"He [Sabby] has been buying lunch and drinks in these bars for over 25 years. Big deal," Gray said.
Awada, 57, of Mendota Heights, is charged with conspiracy to conduct an illegal gambling business, conspiracy to commit money laundering and 12 counts of money laundering to conceal. Erickson, 57, of St. Paul, is charged with conspiring to conduct an illegal gambling business, conspiracy to commit money laundering and two counts of money laundering to conceal.
Big ring
The U.S. attorney's office also filed charges against many others in connection with the alleged gambling ring, including Pub East owner Steven F. Trumble, 50, and Kevin J. Kelly, 51, a part-owner of Joe and Stan's Bar.
The others charged in the case are Tanya Y. Pizel, 41, of Vadnais Heights; Donald R. Rose Jr., 64, of St. Paul; Renee M. Peltier, 45, of St. Paul; John J. Kelly, 71, of St. Paul; Walter T. Swanson Jr., 67, of Brooklyn Park; Daniel C. Neisen, 40, of Belle Plaine; Dennis R. Neisen, 40, of Gaylord; Timothy J. Weiss, 44, of St. Paul, and John E. Boss II, 36, of Edina.
Sabby faces 42 separate charges, including operating an illegal gambling business, 20 counts of money laundering and eight counts of evading taxes.
Authorities also allege that Sabby gave Trumble $178,300 to hold for him at Pub East in January 2002. The money was put in a box and buried in the dirt floor of the bar's basement. When authorities searched the bar Jan. 28, 2002, Trumble showed them where cash was hidden in the basement rafters but did not tell them about the buried money.
So far, none of the people indicted or charged in the case has been arrested or made court appearances, said Karen Bailey, spokeswoman for the U.S. attorney's office.
A spokesman for State Auditor Pat Awada said Wednesday that Awada's husband is a nephew of Walter Awada, but that her family has no business connections to him or his bar.
2 bar owners indicted on gambling charges
Paul Gustafson, Star Tribune
Published April 3, 2003
St. Paul bar owners Walter G. Awada and Gary A. Erickson were indicted Wednesday on federal gambling and money laundering charges in connection with what authorities called a large sports bookmaking operation.
The indictment alleges that Awada, owner of Awada's on Plato on the West Side, and Erickson, owner of Erick's Bar on the East Side, conspired to conduct an illegal gambling business with alleged bookmaker Douglas A. Sabby.
The bar owners allowed Sabby, 57, of Vadnais Heights, to operate his sports bookmaking operation in their bars and assisted him in receiving and paying off bets, the indictment alleges. Awada, who owns three area bars, and Erickson also are alleged to have helped Sabby launder gambling money by cashing checks for him. In addition to those three men, 11 other people have been charged.
U.S. Attorney Tom Heffelfinger said the size of the gambling ring was "amazing." The indictment states that Sabby at times would receive about $1 million a month in wagers and that a bettor known as "Junior" paid Sabby $853,200 in lost wagers between June 1997 and January 2002.
Awada cashed at least 12 checks from Junior totaling $60,000 for Sabby, while Erickson cashed two checks totaling $10,000 for him, the indictment states. In all, 49 checks totaling $245,000 were cashed by various bar owners for Sabby, authorities said.
Heffelfinger said Sabby "could not have engaged in this size of an operation, especially handling all those checks, without the cooperation of many other people."
Earl Gray, an attorney representing Awada and Erickson, said the bar owners have done nothing wrong. Sabby was a regular customer whom Awada and Erickson have known for years, Gray said, and they simply cashed checks for him, a service they offer to other customers as well.
"They [prosecutors] may have an indictment, but they have to prove my clients knew these checks came from bookmaking proceeds," he said. "I've never heard of a bookmaker being paid by check, so how is the bar owner supposed to know a check he's cashing is gambling proceeds?"
Gray denied that his clients shared any gambling proceeds with Sabby. He noted that the indictment states that Awada and Erickson shared the gambling proceeds through Sabby's regular payments for food, drink and other items.
"He [Sabby] has been buying lunch and drinks in these bars for over 25 years. Big deal," Gray said.
Awada, 57, of Mendota Heights, is charged with conspiracy to conduct an illegal gambling business, conspiracy to commit money laundering and 12 counts of money laundering to conceal. Erickson, 57, of St. Paul, is charged with conspiring to conduct an illegal gambling business, conspiracy to commit money laundering and two counts of money laundering to conceal.
Big ring
The U.S. attorney's office also filed charges against many others in connection with the alleged gambling ring, including Pub East owner Steven F. Trumble, 50, and Kevin J. Kelly, 51, a part-owner of Joe and Stan's Bar.
The others charged in the case are Tanya Y. Pizel, 41, of Vadnais Heights; Donald R. Rose Jr., 64, of St. Paul; Renee M. Peltier, 45, of St. Paul; John J. Kelly, 71, of St. Paul; Walter T. Swanson Jr., 67, of Brooklyn Park; Daniel C. Neisen, 40, of Belle Plaine; Dennis R. Neisen, 40, of Gaylord; Timothy J. Weiss, 44, of St. Paul, and John E. Boss II, 36, of Edina.
Sabby faces 42 separate charges, including operating an illegal gambling business, 20 counts of money laundering and eight counts of evading taxes.
Authorities also allege that Sabby gave Trumble $178,300 to hold for him at Pub East in January 2002. The money was put in a box and buried in the dirt floor of the bar's basement. When authorities searched the bar Jan. 28, 2002, Trumble showed them where cash was hidden in the basement rafters but did not tell them about the buried money.
So far, none of the people indicted or charged in the case has been arrested or made court appearances, said Karen Bailey, spokeswoman for the U.S. attorney's office.
A spokesman for State Auditor Pat Awada said Wednesday that Awada's husband is a nephew of Walter Awada, but that her family has no business connections to him or his bar.
