State Sens., Casino Boss Indicted for Corruption

Updated 7:17 p.m. ET

The owner of Alabama's largest casino, four state senators and several lobbyists face federal charges of conspiring to buy and sell votes for millions of dollars to get electronic bingo legalized, according to an indictment released Monday.

Federal agents spread out across the state Monday to arrest 11 people indicted by a grand jury in Montgomery. They are accused of trading votes on a pro-gambling bill for millions of dollars in payments and campaign donations.

The 11 had their first court appearance Monday afternoon, arriving in shackles. A judge allowed all to go free on bonds ranging from $100,000 to $500,000. The highest bonds were set for casino operators Milton McGregor and Ronnie Gilley.

Gilley's attorney, Doug Jones, says there is no question the charges are tied to Montgomery politics and the upcoming election for governor, where the biggest issue is electronic bingo.

One lobbying firm employee has pleaded guilty to offering $2 million for the vote of an indicted senator.

The head of the Justice Department's criminal division, Lanny Breuer, said the criminal activity was "astonishing in scope ... a full-scale campaign to bribe legislators and others."

McGregor's casino, now shut down, has more than 6,000 electronic bingo machines. His attorney, Joe Espy, said his client is absolutely innocent and looks forward to proving it.

Also indicted were state Sens. Harri Anne Smith of Slocomb, James Prueitt of Talladega, Larry Means of Gadsden, and Quinton Ross Jr. of Montgomery.

All four senators voted for the unsuccessful legislation designed to keep electronic bingo casinos operating.

The Democratic nominee for Alabama governor, Ron Sparks, said Monday that the timing of the gambling indictments a month before the election is suspicious and must be questioned.

Sparks said the indictments do not mean the gambling issue is going away and he will continue to push for the regulation and taxation of gambling.

The 11 suspects taken into custody Monday were indicted by a federal grand jury in Montgomery, where the chief federal prosecutor is a holdover from President Bush's Republican administration.

Also indicted were lobbyists Tom Coker and Bob Geddie, who represent VictoryLand; lobbyist Jarrod Massey and public relations executive Jay Walker, who represent Country Crossing; and Ray Crosby, an attorney for the Legislature who helped write gambling legislation.

Federal authorities announced Monday that one of Massey's employees, Jennifer Pouncy of Montgomery, pleaded guilty Sept. 28 to conspiracy. She admitted that at Massey's direction, she offered Preuitt $2 million for his vote and that Massey authorized her to offer $100,000 to Means for his vote.

The indictment alleges that Means, who had abstained from an earlier vote on the pro-gambling legislation in 2010, solicited bribes from McGregor, Gilley, Massey and others in return for voting in favor. In one case, the indictment says, he sought $100,000.

The indictment accused Ross of pressuring McGregor for campaign donations before voting for the gambling bill. It accuses Smith of voting for the bill and encouraging other legislators to support it in exchange for promises and payments from Gilley and others of hundreds of thousands in campaign funds. And it says the Preuitt was offered financial support, free polling and concerts by country music artists to help with his campaign.

The probe was announced last spring prior to the final votes on the bill, which died when sponsors could not line up enough for passage.

Backers of the bill, mostly Democrats, accused Republican Gov. Bob Riley's administration of derailing the measure with the announcement. While Riley's state public safety director was involved with the announcement, federal authorities said the Justice Department was handling the investigation.

Of the four state senators indicted, Means and Ross are Democrats, Preuitt is a Republican and Smith is an independent who was a Republican when the bill was in the Legislature. All are seeking re-election except Preuitt, who recently pulled out of his race.

Smith called her arrest "a nakedly political move, coordinated by the prosecutors in cahoots with the governor's office" to influence legislative elections Nov. 2.

The governor's spokesman, Jeff Emerson, said that last spring, Riley had labeled the gambling bill "the most corrupt piece of legislation ever considered by the Senate."

"Today's action by the Justice Department shows he was, sadly, right," Emerson said.

Electronic bingo casinos operated in Alabama for several years until the governor labeled the machines illegal slots and organized a task force to close them down. The unsuccessful legislation was designed to thwart Riley's task force and keep the electronic bingo machines operating.

McGregor's casino, 15 miles east of Montgomery, was the state's largest, but it has been closed since Aug. 9 to prevent a raid by the task force, which managed to close all privately operated electronic bingo casinos during the probe.

Only three casinos operated by the Poarch Creek Indians remain in operation. They are not under state supervision.