Federal sports betting case ends with no prison time
The leader of an illegal sports betting operation has been ordered to pay $12.6 million to the federal government but will not be going to prison.
Instead, Bartice "Luke" King will spend five years on probation, with the first five months in detention at his home in south Texas. He also must complete 312 hours of community service.
King was the last of 28 defendants associated with the now-closed Legendz Sports to be sentenced in the 2013 case. None were ordered to prison.
An Oklahoma City federal judge chose all the punishments ? probation or, in one instance, time served in jail.
Under sentencing guidelines, King, 46, had faced up to 41 months in federal prison.
Key to the judge was a consideration of whether the conduct harmed society. More than once, the judge quoted from a letter sent by a jury foreman who suggested probation for two participants.
"With all the 'legal' sports gambling that goes on in the U.S., coupled with the fact that no one was physically harmed and nobody was forced to place bets, I see no threat to society by allowing both ... to avoid prison time," the foreman from the last jury trial in the case wrote.
Still, the outcomes were a blow to prosecutors, particularly since prison time had been handed out in a similar illegal gambling case involving well-known Oklahoma City bookie Teddy Mitchell.
Prosecutors could appeal and seek to have King and possibly others sentenced again.
The judge repeatedly criticized the government for "disheartening" misconduct ? both in the investigation and during the prosecution of the case. The judge said that was not a factor, though, in his sentencing decisions.
"It was not trivial," U.S. District Judge Stephen Friot said of the misconduct.
The judge specifically criticized the government for initially claiming Legendz Sports had taken in more than $1 billion in illegal bets during its existence. He called that claim preposterous.
"The U.S. government played fast and loose with the facts," Friot said Thursday at King's sentencing.
A former bartender, King started his online gambling business in Costa Rica under a different name. In 2003, he moved the operation to Panama. It became one of the top-rated online betting sites and employed hundreds of people.
It shut down shortly after the 98-page indictment against King, his wife and 32 other people was unsealed on April 10, 2013.
The indictment was filed in Oklahoma City because that is where the investigation began and some of the Legendz Sports employees were Oklahomans.
In 2008, FBI employees in Oklahoma went undercover to try to identify bookies. They bet thousands of dollars on University of Oklahoma football games and other sporting events, records show. Their investigation was known at one point as ?Operation Bad Luck.?
King spent four months in the Grady County jail after being indicted. He was released after posting bail of $1 million ? in cash.
He was convicted at a jury trial in 2015 of conducting an illegal gambling business and conspiring to commit money laundering. He was acquitted of a racketeering offense.
His wife, Serena King, was found not guilty at a separate jury trial of conspiring to commit money laundering. She was acquitted by the judge of two other counts.
Several of the other defendants pleaded guilty to the racketeering offense or to a reduced charge. Some did so after reaching agreements with the prosecution to cooperate. A few others went to trial and were convicted. Two died, and three had the counts against them dismissed.
The sentencing for King was put off until the judge determined how much he had to forfeit to the government.
Prosecutors asked that King forfeit $222 million, plus give up three automobiles, jewelry, 20 pairs of Jimmy Choo shoes, 75 purses, a jukebox, sports memorabilia and five parcels of real property.
The judge in March ruled he must forfeit only $12 million. The judge found the government had falsely stated his only income during the time of the conspiracy was from his illegal sports betting business.
The judge on Thursday admonished one prosecutor, John Han, for unprofessional conduct in the case. Han is a U.S. Justice Department attorney from outside Oklahoma who was brought in to help in the prosecution.
The leader of an illegal sports betting operation has been ordered to pay $12.6 million to the federal government but will not be going to prison.
Instead, Bartice "Luke" King will spend five years on probation, with the first five months in detention at his home in south Texas. He also must complete 312 hours of community service.
King was the last of 28 defendants associated with the now-closed Legendz Sports to be sentenced in the 2013 case. None were ordered to prison.
An Oklahoma City federal judge chose all the punishments ? probation or, in one instance, time served in jail.
Under sentencing guidelines, King, 46, had faced up to 41 months in federal prison.
Key to the judge was a consideration of whether the conduct harmed society. More than once, the judge quoted from a letter sent by a jury foreman who suggested probation for two participants.
"With all the 'legal' sports gambling that goes on in the U.S., coupled with the fact that no one was physically harmed and nobody was forced to place bets, I see no threat to society by allowing both ... to avoid prison time," the foreman from the last jury trial in the case wrote.
Still, the outcomes were a blow to prosecutors, particularly since prison time had been handed out in a similar illegal gambling case involving well-known Oklahoma City bookie Teddy Mitchell.
Prosecutors could appeal and seek to have King and possibly others sentenced again.
The judge repeatedly criticized the government for "disheartening" misconduct ? both in the investigation and during the prosecution of the case. The judge said that was not a factor, though, in his sentencing decisions.
"It was not trivial," U.S. District Judge Stephen Friot said of the misconduct.
The judge specifically criticized the government for initially claiming Legendz Sports had taken in more than $1 billion in illegal bets during its existence. He called that claim preposterous.
"The U.S. government played fast and loose with the facts," Friot said Thursday at King's sentencing.
A former bartender, King started his online gambling business in Costa Rica under a different name. In 2003, he moved the operation to Panama. It became one of the top-rated online betting sites and employed hundreds of people.
It shut down shortly after the 98-page indictment against King, his wife and 32 other people was unsealed on April 10, 2013.
The indictment was filed in Oklahoma City because that is where the investigation began and some of the Legendz Sports employees were Oklahomans.
In 2008, FBI employees in Oklahoma went undercover to try to identify bookies. They bet thousands of dollars on University of Oklahoma football games and other sporting events, records show. Their investigation was known at one point as ?Operation Bad Luck.?
King spent four months in the Grady County jail after being indicted. He was released after posting bail of $1 million ? in cash.
He was convicted at a jury trial in 2015 of conducting an illegal gambling business and conspiring to commit money laundering. He was acquitted of a racketeering offense.
His wife, Serena King, was found not guilty at a separate jury trial of conspiring to commit money laundering. She was acquitted by the judge of two other counts.
Several of the other defendants pleaded guilty to the racketeering offense or to a reduced charge. Some did so after reaching agreements with the prosecution to cooperate. A few others went to trial and were convicted. Two died, and three had the counts against them dismissed.
The sentencing for King was put off until the judge determined how much he had to forfeit to the government.
Prosecutors asked that King forfeit $222 million, plus give up three automobiles, jewelry, 20 pairs of Jimmy Choo shoes, 75 purses, a jukebox, sports memorabilia and five parcels of real property.
The judge in March ruled he must forfeit only $12 million. The judge found the government had falsely stated his only income during the time of the conspiracy was from his illegal sports betting business.
The judge on Thursday admonished one prosecutor, John Han, for unprofessional conduct in the case. Han is a U.S. Justice Department attorney from outside Oklahoma who was brought in to help in the prosecution.
