CHARLESTON, W.Va. – A West Logan restaurant owner has been charged with laundering cash proceeds of an illegal gambling operation.
Federal prosecutors filed the charge against Gregory A. Dotson, 51, of Chapmanville, on Tuesday.
According to the information, since May of 2008, Dotson operated an illegal poker machine gambling parlor in the back of a tobacco store in South Williamson, Kentucky.
Although payouts from poker machines, often referred to as “gray” machines, are illegal under Kentucky law, Dotson routinely paid out gambling winnings to patrons.
Prosecutors say Dotson retrieved the proceeds from the illegal gambling operation weekly and brought the cash across state lines to his office at Giovanni’s in Logan County.
They say he then mixed in the cash from his legitimate business with his illegal enterprise.
Prosecutors say on August 16, 2010, Dotson traveled from West Virginia to Bristol, Tennessee, where he bought a 2009 Nissan 350z sports car with cash from the illegal gambling operation.
In October 2013, IRS agents raided the gambling parlor, and seized 40 machines in operation and another forty machines in storage.
If convicted, prosecutors want Dotson to forfeit nearly $150,000 in cash, a $96,000 Mercedes sport-utility vehicle, a $50,000 Rolex watch, several expensive firearms, in addition to the eighty gray machines that were seized from the South Williamson operation.
In addition to the forfeiture, Dotson faces up to ten years in prison and a $250,000 fine if convicted.