The former co-owner of Reece’s Las Vegas Supply on Needmore Road admitted to illegally skimming money from charity poker tournaments, obstructing an Internal Revenue Service investigation and trying to defraud the IRS by selling his gambling supplies business for hundreds of thousands of dollars in unreported income.
Powers pleaded guilty to conspiracy and operating an illegal gambling business, defrauding the United States and witness tampering — coercing at least one witness to lie to a grand jury — in exchange for other counts being dropped.
In 2006, Powers was sentenced to 20 months in federal prison for running an illegal gambling business and money laundering.
“I know I was in some gray areas when I did it,” Powers told Black, who responded: “Give me a break! You went to federal prison for it.”
Prosecutors argued in a sentencing memorandum for Black to accept the probation office’s recommended sentence of 30 months. Powers’ attorney asked for probation for his client, who suffers from numerous health problems.
Several letters to Black written by Powers’ family and friends said that Powers has neither the will nor the ability to re-offend, and that a prison sentence isn’t necessary.
U.S. Dept. of Justice attorney Jorge Almonte disagreed, calling Black a “master manipulator” who told associates that the basic message was to “stick to your story and we’ll all be OK.”
The non-binding sentencing guideline for Powers’ convictions would have been 37 to 46 months in prison. The maximum total for all four crimes was 35 years in prison and a $1 million fine.
“The court had the power to go below the sentencing guidelines, and, in fact, the court did that,” said defense attorney L. Patrick Mulligan, adding that Powers suffers from kidney disease, lung disease, Diabetes and early-onset dementia among other issues. “We appreciate that.”
Prosecutors said Powers and his co-conspirators violated Ohio and federal gaming laws by taking a portion of the money generated from poker fundraisers which should have gone to 501(c)(3) charitable organizations. Powers used the money to pay the event workers and himself, distributing the payment of cash usually in coded envelopes.
“It is indeed difficult for undersigned counsel to feign outrage over a person operating a gambling facility when there is not a cornfield in Ohio that is safe from having a brand new gambling facility erected upon it,” Mulligan wrote in his sentencing memo, adding that some of the charities miss the dollars they made from the poker tournaments.
Powers and some co-conspirators — who worked as card dealers, cashiers, chip sellers, pit bosses, tournament directors and managers — represented themselves are uncompensated volunteers and obstructed investigations by the IRS and federal grand jury. Powers also admitted to being part of another conspiracy to try to sell his business for $1.1 million but only report it as a $200,000 sale to avoid taxes.
Black allowed Powers to travel to Florida and Niagara Falls during the case and will allow Powers to self-report to prison. “You will be cared for in federal prison,” Black told Powers.
On Wednesday, defendants Virgil D. Rockwell, Allen G. Beck, Walter F. Dyer, Jennifer Williams (aka Jennifer Bair), Michael Gedeon were sentenced.
Gedeon received one day in prison and two months of home incarceration. Williams got six months of home incarceration and 50 hours community service. Dyer got one day in prison and a $3,000 fine. Rockwell got probation and a $1,000 fine. Beck got 100 hours of community service and a $500 fine.
On Thursday, defendants Douglas A. Sanders and Jason S. Pulaski each were sentenced to one year and one day in prison. All but Rockwell and Beck also received three years of supervised release.
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