The alleged ringleader of an illegal gambling operation that drew as
much as $50,000 in wagers a day pleaded guilty to federal charges
Wednesday. James E. "Slim" Houston appeared before Senior U.S. District
Court Judge James Jarvis and admitted conspiring both to operate an
illegal numbers game and laundering the profits from the
Knoxville-based operation.
Although court records label him the leader of a conspiracy that
included eight people, defense attorney David Eldridge indicated at
Wednesday's hearing that Houston's role is still subject to debate.
"There may be an issue of what the appropriate role of Mr. Houston is," Eldridge said.
For Houston, it's a distinction that could knock him four steps up the
federal sentencing guidelines ladder if he is deemed under the law an
"organizer or leader."
Eldridge noted that he and Houston already have bargained with the U.S.
Attorney's Office on the financial cost for Houston in the
lottery-based game. As part of his plea deal, Houston is giving up an
estimated $4 million worth of real estate in states including
Tennessee, North Carolina and Nevada.
"We've worked hard to get those properties in order," Eldridge said.
"It's not all the property you got, is it?" Jarvis asked Houston.
"No, sir," Houston replied.
Houston described himself as a "land developer" by trade.
According to documents filed by federal prosecutors John P. MacCoon and
Charles Atchley, Houston created an Internet venture in which bets
were placed on the winning numbers in legal state lotteries in Georgia
and Illinois.
Houston served as the "bank" and paid others to serve as cash couriers.
He also conspired with the operators of the Holiday Market in East
Knoxville, a bridal shop in Lewisburg, Tenn., and a restaurant in
Chattanooga to serve as collection points for the operation, MacCoon
wrote.
Others, like 77-year-old Alexander Wade, helped Houston hide his
ill-gotten gains, court records allege. Wade also pleaded guilty
Wednesday.
His attorney, Don Bosch, said Wade was a grandfather who was a "minor participant" in the operation.
Both men will be sentenced in July.
Knoxville News Sentinel
