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Showing posts with label gambling. Show all posts
Showing posts with label gambling. Show all posts

Wednesday, June 15, 2011

Detained Mexican gambling magnate walks free (AP)

By ELLIOT SPAGAT and E. EDUARDO CASTILLO, Associated Press Elliot Spagat And E. Eduardo Castillo, Associated Press – Wed Jun 15, 1:41 am ET

TIJUANA, Mexico – Former Tijuana Mayor Jorge Hank Rhon's 10-day legal odyssey left him rumpled but with his reputation intact: He is an eccentric gambling tycoon with suspected ties to organized crime who appears to be untouchable by the law.

Wearing a sweat shirt and a smile, Hank Rhon walked free Tuesday after winning two rounds against Mexican authorities as separate judges dismissed federal weapons charges against him, then refused to back state prosecutors' attempts to detain him in a murder investigation.

The rapid-fire developments — he was freed around dawn from federal custody, held by state prosecutors in the afternoon at a hotel and home safe by dinner — dealt a blow to Mexico's attempts to fight organized crime and fueled claims that the strike against the controversial magnate was politically motivated.

"I'm free, I'm in my house with my family," Hank Rhon, 55, said late Tuesday through his spokesman, Francisco Ramirez.

While Hank Rhon was reveling in his newfound freedom, federal authorities were smarting after a judge ruled that the story of his arrest during an army raid last week just didn't hold up.

The man U.S. authorities have long suspected of ties with money laundering had supporters demonstrating in the streets for his freedom, and Roman Catholic bishops calling for his speedy release. He has strenuously denied ties to organized crime.

Federal prosecutors said they would appeal the judge's ruling, while the state said it would continue the investigation into his possible links to three homicides, including that he ordered the 2009 killing of his son's former girlfriend.

Assistant Attorney General Patricia Bugarin said that on June 8, the judge had ruled the arrests were legal.

"I don't know what reasons she had to change her mind," Bugarin told Milenio television. "I don't think the evidence was adequately analyzed."

Hank Rhon was Tijuana's mayor from 2004 to 2007, when he staged a failed run for governor. He has long figured large on the national political scene, and not only because of the wealth amassed from his Caliente gambling empire.

His father was one of Mexico's best-known politicians, leader of a faction in the Institutional Revolutionary Party, or PRI, that ruled Mexico from 1929 until 2000. National polls indicate that the man with the best chance to oust Calderon's National Action Party and recover the presidency for the PRI in 2012 is Enrique Pena Nieto, who has political ties to Hank Rhon.

Federal Judge Blanca Evelia Parra Meza ruled early Tuesday that there wasn't enough evidence to order Hank Rhon and eight others to stand trial on charges of possessing weapons restricted to military use, according to a statement from the court office. Parra said that the story told by soldiers about the pre-dawn raid in which they found weapons at Hank Rhon's home didn't hold up.

Soldiers raided his elaborate compound, which includes a racetrack, a casino and a private zoo in the early morning of June 4, seizing 88 weapons and nearly 10,000 rounds of ammunition during the raid.

Federal prosecutors said only 10 were licensed and two were traced to two other Tijuana murders, of a security guard in December 2009 and an alleged car thief in June 2010.

Hank Rhon's lawyers said the raid was illegal because soldiers didn't have a search warrant.

The army had said the soldiers didn't need a search warrant to enter the house because they got a tip about weapons being stored there, saw armed men at the residence and followed them inside. But Parra, the federal judge, said, "There was evidence of several inconsistencies, in regard to the times, distances and places referred to in the soldiers' report," according to the statement.

Hank Rhon was then turned over to state prosecutors, who announced they were investigating his link to the August 2009 killing of 24-year-old Angelica Munoz after the assassin testified that he acted under orders from Hank Rhon.

A state judge then refused to order him held for 40 days without charges while prosecutors completed the investigation.

Prosecutors' spokesman Marco Vinicio Blanco said a Baja California state judge cited a lack of evidence in deciding not to hold him in the killing, in which the woman was shot in the head.

U.S. authorities have long suspected Hank Rhon of links to money laundering, but no accusations have been documented. Two of his bodyguards were convicted of killing investigative journalist Hector Felix Miranda in 1988, but they denied the attack was linked to their boss, and no charges were filed against him.

Despite the accusations, Hank Rhon's reputation for generosity won him support in Tijuana.

Bertha Guadalupe Diaz, a 66-year-old street vendor who regularly attends Hank Rhon's massive, free parties on Mother's Day and other holidays, recalled being summoned to City Hall when Hank Rhon learned she couldn't afford a hearing aid. He offered to pay the bill.

"Thanks to him, I hear," she said.

Virginia Mora, 66, said she met Hank Rhon in her hardscrabble neighborhood when he campaigned for mayor and stopped by for two servings of homemade soup. He paid her with a huge delivery of cement and other building materials.

"He likes to help people out, give gifts," said Mora, 66.

___

Associated Press writer Mariana Martinez contributed to this report.


Yahoo! News

Friday, April 15, 2011

States debate Internet cafe gambling

By Pat Jarrett, for USA TODAY

Natasha Summers, 18, crosses her fingers while playing a slot machine game at Richard's Internet Access and Sweepstakes in Harrisonburg, Va.

EnlargeCloseBy Pat Jarrett, for USA TODAY

Natasha Summers, 18, crosses her fingers while playing a slot machine game at Richard's Internet Access and Sweepstakes in Harrisonburg, Va.

In trying to build her business, she offered an online sweepstakes -- giving 100 chances for every hour of Internet time purchased. Customers could see if they won by playing video slot machines online and redeem winning chances for cash prizes of $10, $25 or $100.

Authorities said it looked a lot like gambling, and the city's police department shut her cafe down three months after she opened.

STORY: D.C. to offer Internet gamblingEighteen months later, the state attorney for Brevard County has dropped the gambling charges for a lesser misdemeanor for not properly advertising her sweepstakes promotion. Marceau accepted the deal this month. And the City Council that had her investigated has decided to make electronic gaming establishments legal.

"It's not gambling," says Marceau, who says she plans to reopen under the new ordinance. "The sweepstakes is just a way to get them in to use the computers."

Palm Bay's debate over Internet gaming cafes mirrors the problems cities and counties across the USA are having. The question is whether the casino-style video slot games are gambling under state law and whether the state allows that kind of gambling.

Keith Whyte, executive director of the National Council on Problem Gambling, says it is gambling.

"What we've seen a lot with these Internet sweepstakes cafes is it's a way to get around gambling laws," Whyte said. "The only reason people are going to these facilities and spending so much time and money is because it's gambling. If it wasn't gambling, it wouldn't be popular."

The assumption, he said, is people are going primarily to gamble and not to use the Internet, make copies or fax documents.

Last year, North Carolina's Democratic Gov. Bev Perdue signed a bill making the 900 or so cafes in the state illegal as of Dec. 1. She has subsequently said she would consider regulating the industry.

William Thevaos, president of the Entertainment Group of North Carolina -- an association representing Internet sweepstakes centers in the state -- says regulated Internet sweepstakes could generate $500 million a year for the state.

In other states:

•A bill introduced by Virginia state Sen. Mark Obenshain, R-Harrisonburg, that would make sweepstakes stores illegal was passed by the General Assembly last month. Gov. Bob McDonnell wanted the law to take effect immediately, but the General Assembly turned him down, said Jeff Caldwell, spokesman for the Republican governor. The governor will have 30 days to review the measure before signing it or vetoing it.

Jim Sutherland, a co-owner of Richards Internet Center in Harrisonburg, Va., says he had planned to open a second center in Newport News and had applied for a supplemental use permit.

"Then this law came along, and they tabled it," he said.

•Ohio Attorney General Mike DeWine is working with the Legislature and the Ohio Casino Control Commission to license and regulate Internet cafes so people won't be ripped off. "Internet cafes and sweepstakes that are skirting the law are growing in many of our communities," he said.

In March, police in Salt Lake City and Ogden, Utah, raided cybercafes suspected of online gambling. Attorney Elizabeth Dunning has filed a lawsuit on behalf of Blue Sky Entertainment challenging the "fringe gambling" law.

•A federal judge in Texas convicted three men earlier in March of participating in an Internet gambling conspiracy using "computerized gambling machines using sweepstakes to attract patrons under the guise of internet cafes and e-business centers " U.S. Attorney John Bales said.

Even as Palm Bay officials consider legalizing Internet sweepstakes promotions, Florida Rep. Scott Plakon, R-Longwood, has introduced a bill that would make it illegal statewide.

"Anybody that goes into those places is obviously not checking their e-mail or their friends on Facebook," Plakon said.

Danny Black, a regional manager for Allied Veterans of the World, which has 38 cafes in Florida, said customers have the option of going to a quick open page to reveal all their chances at once to see if they won anything. The video games "are a more entertaining way" to find out what you won, he said.

No one in Florida has been convicted of gambling related to running an Internet cafe.

Marceau hopes it stays that way so she can reopen.

"I just want to run my little business, provide Internet and copy services," Marceau says. "I've done nothing wrong."

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