San Diego, CA Illegal Gambling Bust

[JCB1977]

Authorities raided a small casino in eastern San Diego Wednesday morning following a two-year investigation that has led to charges against more than a dozen men in an illegal online gambling ring.

More than 100 FBI agents and San Diego police detectives arrested nine of the 14 defendants through coordinated efforts in California, Nevada and Kentucky, the U.S. Attorney’s Office in San Diego said.

In three federal grand jury indictments unsealed Wednesday afternoon, authorities allege the Lucky Lady Casino and Card Room in El Cerrito was used as a legitimate front for the illicit bookmaking operation, which generated nearly $1 million.

Segal’s Lucky Lady Sports Book connected bookmakers and bettors with sports gambling websites outside of the U.S., some of which were owned or controlled by members of the gambling ring, authorities said. Sanders Segal led the gambling ring, alongside his son Sydney Bruce Segal and Lucky Lady casino owner Stanley Samuel Penn, according to the indictments.

Other defendants include suspected bookmakers and international business men accused of financing Segal’s Lucky Lady Sports Book. Five outstanding men remain at large in Canada and Thailand, authorities said.

In their joint investigation, which began in 2014, the FBI and San Diego police previously employed wiretaps and undercover agents to uncover the alleged crimes, authorities said.

PREVIOUS: Card room busts are only the latest episode
On Wednesday, about a dozen investigators served a search warrant at the Lucky Lady Casino, on El Cajon Boulevard at 55th Street, about 8 a.m. They could be seen combing the small card room and examining documents.

They were expected to be be there for about two hours to collect evidence.

The raid also included a sweep of the adjacent restaurant, The River sports bar. Additional searches were being carried out at homes around the county, FBI spokesman Darrell Foxworth said.

Outside the card room Wednesday morning, David Nguyen, 36, said he has been a poker dealer at the casino for about a year and a half. He said he liked working at the location, with its friendly atmosphere.

"There are a lot of good customers and a lot of good employees – everything was straight," he said. "Everything seemed smooth, by the book. I had a good boss. Nothing seemed out of the ordinary at all."

Last year FBI and state agents raided the Palomar Card Club, which was on El Cajon Boulevard in North Park, about four miles west of the Lucky Lady, and the Seven Mile Casino in Chula Vista in what was described as a two-year-long investigation into an illegal gambling ring. Foxworth would not say if Wednesday's raid was related, but noted information gathered in one investigation can lead to another.

Nguyen said when he heard about the Palomar raid, he never thought something similar could happen at his casino.

"Everyday the boss came in an made sure everything was correct and made sure everyone was doing their job right. He was on top of everything.”

http://www.sandiegouniontribune.com/new ... zed-crime/

[Pogo The Clown]

More than 100 FBI agents and San Diego police detectives arrested nine of the 14 defendants through coordinated efforts in California, Nevada and Kentucky

They needed over 100 people to arrest 9 out 14 people? Talk about a waste of money and resources.


Pogo

[JCB1977]

More than 100 FBI agents and San Diego police detectives arrested nine of the 14 defendants through coordinated efforts in California, Nevada and Kentucky

They needed over 100 people to arrest 9 out 14 people? Talk about a waste of money and resources.


Pogo

Big waste of $$

[Doobeez]

One of the bookies is from Richmond, Kentucky..about half hour south of here.

[JCB1977]

One of the bookies is from Richmond, Kentucky..about half hour south of here.

Covington, KY had quite the OC presence back in the 1930's-1960's with Moe Dalitz and his Cleveland Mayfield Jewish faction owning a few casinos there.

[Doobeez]

One of the bookies is from Richmond, Kentucky..about half hour south of here.

Covington, KY had quite the OC presence back in the 1930's-1960's with Moe Dalitz and his Cleveland Mayfield Jewish faction owning a few casinos there.

They did indeed...and thanks again for those links, JCB...awesome stuff, my friend.

[JCB1977]

One of the bookies is from Richmond, Kentucky..about half hour south of here.

Covington, KY had quite the OC presence back in the 1930's-1960's with Moe Dalitz and his Cleveland Mayfield Jewish faction owning a few casinos there.

They did indeed...and thanks again for those links, JCB...awesome stuff, my friend.

Anytime pal

[FriendofHenry]

Maybe the biggest and best of the Casinos was the Beverly Hills. Mom and Dad spent an evening there with Chuck Teemer and Lil Bahm.

The Cleveland Four

Of those syndicates operating primarily outside of Newport, the most important was the Cleveland Four. Named for the four leaders of the syndicate, Moe Dalitz, Morris Kleinman, Louis Rothkopf and Sam Tucker, the Cleveland Four had a long history and far-flung interests. Arguably, next to Meyer Lansky and his associates, the Cleveland Four was one of the most powerful syndicates in the United States and a defining influence in the organization of crime throughout the entire 20th Century (Messick, 1968: 21).

Each of the governing members of the Cleveland Four brought his own unique experiences to the organization; assumed primary responsibility for specific enterprises of the organizations; and left his own clear mark on organized crime. Moe Dalitz was a native of Detroit where he was an early member of the "Purple Gang," a syndicate involved in the "protection racket," strikebreaking, and bootlegging. He was a friend and mentor of the young Jimmy Hoffa who would rise to prominence as president of the Teamsters Union. Dalitz left Detroit for Cleveland, and rum-running across Lake Erie in 1925. Morris Kleinman was a Cleveland native who started out running a brewery in Cleveland and ended up supervising bootlegging for the Cleveland Four through Canada. Louis Rothkopf was also a Cleveland native with expertise in the construction and management of stills. He took a major role as a supervisor of the syndicate's many alcohol production facilities both domestically and internationally. Finally, Sam Tucker was a immigrant from Lithuania who supervised the purchase, maintenance and operation of the fleet of boats used by the syndicate during Prohbition (Messick, 1967).

Closely allied with Meyer Lansky and Bugsy Siegel in New York, the Cleveland Four were bootlegging liquor from Canada and operating a nationwide distribution system. By 1930 they were partners with Lansky in several large distilling operations in both Cuba and Ohio. In the early 1930s, the Cleveland Four, just like Lansky began establishing illegal gambling casinos in the Cleveland area as a probable post-Prohibition enterprise. By the1950s the Cleveland Four were joining Lansky and Siegel in Las Vegas expansion at the world-famous Desert Inn (Messick, 1967).

Although the Cleveland Four distributed liquor in the Newport area, their first direct move into metropolitan Cincinnati came with the assassination of Dutch Schultz. The Dutchman owned a race track outside of Cincinnati named the "Coney Island Racetrack." Within days of Schultz's demise the Cleveland Four took that track over, renaming it River Downs, a track that continues to run today. Shortly thereafter they acquired ownership of Latonia Park, a dog track in Florence, Kentucky, right outside Newport, which they turned into a horse track and was later renamed Turfway Park, a track now owned by Keeneland (Messick, 1967).

[Doobeez]

Haven't heard the name Latonia in a good while! Going back thirty or so years, but I believe they also ran a standardbred meet as well..

River Downs, was rebuilt, and renamed Belterra Park.

Thanks for the info, FoH..

[JCB1977]

Information on Gambling in Northern Kentucky under Moe Dalitz and company:

http://www.rootsweb.ancestry.com/~kycam ... mbling.htm

[JCB1977]

Maybe the biggest and best of the Casinos was the Beverly Hills. Mom and Dad spent an evening there with Chuck Teemer and Lil Bahm.

The Cleveland Four

Of those syndicates operating primarily outside of Newport, the most important was the Cleveland Four. Named for the four leaders of the syndicate, Moe Dalitz, Morris Kleinman, Louis Rothkopf and Sam Tucker, the Cleveland Four had a long history and far-flung interests. Arguably, next to Meyer Lansky and his associates, the Cleveland Four was one of the most powerful syndicates in the United States and a defining influence in the organization of crime throughout the entire 20th Century (Messick, 1968: 21).

Each of the governing members of the Cleveland Four brought his own unique experiences to the organization; assumed primary responsibility for specific enterprises of the organizations; and left his own clear mark on organized crime. Moe Dalitz was a native of Detroit where he was an early member of the "Purple Gang," a syndicate involved in the "protection racket," strikebreaking, and bootlegging. He was a friend and mentor of the young Jimmy Hoffa who would rise to prominence as president of the Teamsters Union. Dalitz left Detroit for Cleveland, and rum-running across Lake Erie in 1925. Morris Kleinman was a Cleveland native who started out running a brewery in Cleveland and ended up supervising bootlegging for the Cleveland Four through Canada. Louis Rothkopf was also a Cleveland native with expertise in the construction and management of stills. He took a major role as a supervisor of the syndicate's many alcohol production facilities both domestically and internationally. Finally, Sam Tucker was a immigrant from Lithuania who supervised the purchase, maintenance and operation of the fleet of boats used by the syndicate during Prohbition (Messick, 1967).

Closely allied with Meyer Lansky and Bugsy Siegel in New York, the Cleveland Four were bootlegging liquor from Canada and operating a nationwide distribution system. By 1930 they were partners with Lansky in several large distilling operations in both Cuba and Ohio. In the early 1930s, the Cleveland Four, just like Lansky began establishing illegal gambling casinos in the Cleveland area as a probable post-Prohibition enterprise. By the1950s the Cleveland Four were joining Lansky and Siegel in Las Vegas expansion at the world-famous Desert Inn (Messick, 1967).

Although the Cleveland Four distributed liquor in the Newport area, their first direct move into metropolitan Cincinnati came with the assassination of Dutch Schultz. The Dutchman owned a race track outside of Cincinnati named the "Coney Island Racetrack." Within days of Schultz's demise the Cleveland Four took that track over, renaming it River Downs, a track that continues to run today. Shortly thereafter they acquired ownership of Latonia Park, a dog track in Florence, Kentucky, right outside Newport, which they turned into a horse track and was later renamed Turfway Park, a track now owned by Keeneland (Messick, 1967).

Great photo Friend of Henry!