bernard
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Joined: 07 Jun 2005
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Location: California
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 Posted: Sat Jul 16, 2005 3:49 pm Post subject: Tennessee Gambling News |
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Federal Lawsuit Says Gambling Operation Was Run Out Of Upscale East Brainerd Road Home
posted July 15, 2005
An illegal gambling operation that brought in bags of cash was run out of an upscale house in East Brainerd, federal authorities say.
A federal lawsuit asks that the house at 2008 Igou Crossing Dr. be confiscated by the government, saying an illegal numbers operation was carried on there and money laundering was involved in its purchase.
The lawsuit, filed in Federal Court in Chattanooga, also asks for the confiscation of a condominium in Smyrna, Ga.
It says Chattanooga businessman James Houston was involved with both properties. He is listed as the owner of Shallowford Auto Sales on Shallowford Road.
The suit says federal authorities have spent the past two years investigating Houston and others for gambling and money laundering.
It says on May 5, there were 17 search warrants issued in East and Middle Tennessee and six in North Alabama.
The lawsuit does not say anyone has been charged in the case.
The suit says a number of individuals told them that Houston is involved in an illegal interstate lottery. The suit says he was investing the proceeds of the gambling in real estate and was taking in so much money that he needed to put some of the property in other names.
Agents said Tyra Barton was involved in the operation with Houston, and she would carry bags of cash from Knoxville to Chattanooga to pay off lottery winnings. It says Barton also collected lottery tickets and cash from members of Houston's operation in Chattanooga and delivered them back to Knoxville from Chattanooga.
Agents said they interviewed William C. Henderson, of 409 Elizabeth Ave. in Knoxville, who said he had worked for Houston for 10-12 years. Agents said they had been told that when Houston was not in Knoxville, Henderson would transfer the cash to Tyra Barton.
Henderson told agents he had the keys to a Houston residence at 5205 Fountain Gate Road in Knoxville. He said in early May he went to the residence and got a bag of cash. He said it was about 3"-5" thick. He said he took it to Tyra Barton's residence on Davenport Road in Knoxville.
Agents said they stopped Tyra Barton in Bradley County on the morning of May 5 and confiscated $21,000 in cash.
Henderson said Houston gave him part of the money for buying a house on Georgia Bell Lane in Cleveland, Tn.
Wilhemina Scott of 370 Lang St. in Cleveland, Tn., said she took part in Houston's lottery since 1998. She said in March 2003 she was approached by Houston about purchasing real estate.
She said she agreed, and she was given cash to be deposited in her account.
The suit says Houston is the owner of Goldmine Capital LLC, which made a $100,000 loan to Ms. Scott. It says on March 12, 2003, Houston made out a $100,000 cashier's check on an AmSouth Bank account to Goldmine Capital to use to fund the loan to Ms. Scott for the purchase of 2008 Igou Crossing.
The suit says Houston or Barton would give cash to Ms. Scott each month for the mortgage payments.
Agents said on April 14 they retrieved a green garbage bag from outside 2008 Igou Crossing. They said it contained shredded privacy envelopes used in the gambling operation by runners for placing betting slips and money.
On May 5, a search was made of the Igou Crossing house and agents found shredding machines and gambling paraphernalia, including privacy envelopes and lottery numbers.
The suit says the utilities at the home were in the name of Carol White. They interviewed her, and she said Houston had asked that they be put in her name. She said Tyra Barton stayed in the residence.
Ms. White said she met Houston when she worked at a dry cleaners and he brought in his clothes. She said she later took a job at State Farm Insurance, and Houston transferred all his accounts there.
She said she heard rumors that Houston was involved with illegal numbers. She said she asked him about it, and he denied it.
Ms. White said Houston asked her to put some of his property in her name, but she declined. Agents said they showed her Georgia property that was titled to her. She said she did not know anything about that.
The suit says at the Smyrna condo at 4805 Ivy Ridge Dr., a witness frequently saw a tall black male who drove a white Lexus with a Tennessee license plate. The witness also saw a red Lexus there.
Another black male in his late 30s driving a late model truck that had a sign "We Buy Lots and Houses" would stay at the Smyrna condo 1-2 days a week, it was stated.
The suit said the red Lexus and the white Lexus were traced to Shallowford Auto Sales in Chattanooga, which agents said is owned by Houston. |
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