Logan businessman charged with laundering gambling money - WTRF 7 News Sports Weather - Wheeling Steubenville

Logan businessman charged with laundering illegal gambling proceeds

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U.S. Attorney Booth Goodwin filed charges today against a West Logan restaurant owner for laundering cash proceeds of an illegal gambling operation.

Goodwin said Gregory A. Dotson, 51, of Chapmanville, and the proprietor of Giovani's of Logan in West Logan, operated an alleged illegal gambling parlor in the back of a tobacco store in South Williamson, Ky., since May of 2008,

Although payouts from poker machines, often referred to as "gray" machines, are illegal under Kentucky law, the government alleges Dotson routinely paid out gambling winnings to patrons. Dotson, retrieving proceeds from the illegal gambling operation weekly and bringing the cash across state lines to his office at Giovanni's, then co-mingled the cash from his legitimate business with his illegal enterprise.

The information alleges Dotson traveled from West Virginia to Bristol, Tenn., in August 2010 with nearly $12,000 in cash from the illegal gambling operation and used those funds to help purchase a 2009 Nissan 350z sports car.

Authorities raided the tobacco store operation in October 2013, seizing 40 machines that were in operation and another 40 in storage.

The information filed today indicates the government intends to seek forfeiture of nearly $150,000 in cash, a $96,000 Mercedes sport-utility vehicle, a $50,000 Rolex watch and several expensive firearms, in addition to 80 gray machines seized from the South Williamson operation.

In addition to the forfeiture, Dotson faces up to 10 years in prison and a $250,000 fine if convicted.

The investigation was conducted by the Internal Revenue Service with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Thomas Ryan is handling the prosecution.