AUSTIN, Texas — During the course of 20 years, familiarity might have lulled the casual viewer into forgetting that “Law & Order” broke ground on several television fronts.
— Split procedural: “In the criminal justice system, the people are represented by separate yet equally important groups,” intones the introduction to “Law & Order.” Few procedural shows so elegantly balanced the portrayal of “the police who investigate crime and the district attorneys who prosecute the offenders.”
Even producer Dick Wolf’s other franchise hits, “Law & Order: Special Victims Unit” and “Law & Order: Criminal Intent,” didn’t match this balancing act, sticking instead almost exclusively to the more sensational detective work.
— Prosecutors as heroes: Stretching as far back as “Perry Mason,” TV’s fictional lawyers usually argued for the defense. “Law & Order” was born during a conservative era, and even borrowed its title from a familiar Republican campaign theme.
It could be argued that the show neutralized criminal prosecution as a political billy club by showing that Manhattan-based liberals could fight crime just as honorably and enthusiastically as conservatives. The show also reminded us that prosecutors represented “the people” — that’s the rest of us, folks.
— Rapid episodic narrative: Procedurals from the 1980s — “Hill Street Blues,” “Cagney & Lacey” and “Miami Vice,” — often interrupted storytelling with car-chase action, charismatic scenery or painfully slow character development.
“Law & Order” moves at such a rapid, clipped rate, one can’t leave the room without missing a key clue. Some scenes last mere seconds.
Source
Wednesday, July 28, 2010
Thursday, July 15, 2010
Charges dropped against Superior man accused of trespassing on own land
The charges against Jeremy Engelking, a 27-year-old Superior man who challenged Enbridge Energy Partners’ right to push a pipeline through his property, have been dismissed.
During a pretrial hearing Monday, Engelking learned that Assistant Douglas County District Attorney Lance Nelsen no longer intends to pursue a disorderly conduct charge against him. A previous charge of trespassing on a construction site was dropped in March.
Engelking’s case made national news in December, when he was arrested and charged for trespassing on his own property. Engelking confronted a crew laying pipe across his land, saying that they did not have authority to be there.
He wound up in handcuffs and a jail cell.
Nelsen could not be reached for comment late Monday afternoon.
“It’s sad it had to go this far,” Engelking said. “They should have realized they didn’t have a case right away.”
Engelking said he had been offered a plea agreement but remained intent on taking the case to trial. He still doesn’t know how much his legal bills will total.
Now that the criminal charges against him have been dismissed, Engelking said he may well file civil suits against Douglas County and Enbridge.
Source
During a pretrial hearing Monday, Engelking learned that Assistant Douglas County District Attorney Lance Nelsen no longer intends to pursue a disorderly conduct charge against him. A previous charge of trespassing on a construction site was dropped in March.
Engelking’s case made national news in December, when he was arrested and charged for trespassing on his own property. Engelking confronted a crew laying pipe across his land, saying that they did not have authority to be there.
He wound up in handcuffs and a jail cell.
Nelsen could not be reached for comment late Monday afternoon.
“It’s sad it had to go this far,” Engelking said. “They should have realized they didn’t have a case right away.”
Engelking said he had been offered a plea agreement but remained intent on taking the case to trial. He still doesn’t know how much his legal bills will total.
Now that the criminal charges against him have been dismissed, Engelking said he may well file civil suits against Douglas County and Enbridge.
Source
Monday, June 28, 2010
Coquille-area man Patrick Horath sentenced in murder of Jayme Austin
COQUILLE, Ore. (KMTR) – A Coquille area man will serve life in prison with the possibility of parole after 30 years as part of a plea deal in the death of Coquille area woman, who was his sister-in-law.
46-year-old Patrick Lee Horath was sentenced in Coos County Court Tuesday morning, in Judge Michael Gillespie’s courtroom.
Horath reached a plea-deal with the Coos County District Attorney’s office on Monday afternoon on one aggravated murder charge. He will serve life in prison, with the possibility of parole after 30 years. Horath will be 76 years old when he’s eligible for parole.
The other charges Horath was facing have been dropped.
The Coos County District Attorney’s Office says Patrick Horath sexually assaulted, then killed 31 year old Jayme Austin on November 9th, 2009. It happened at Jayme’s mother’s home in Fairview, just outside of Coquille.
Investigators with the Coos County Sheriff’s Office and the Coos County Major Crimes team began the case when Jamie disappeared on the 9th after not showing up for work.
One week later, Patrick Horath lead investigators to her body and he was charged with her death.
Jayme’s family says it is satisfied with the outcome of the case. Her mother and father participated in the plea deal negotiations.
However, Jayme’s death is a crime the family is still struggling to understand and deal with. Jayme’s violent death changed her parents, her two kids, her sister’s and other family members’ lives.
Jayme’s mother, Cindy Gisholt spoke to members of the media Tuesday morning after the sentencing.
“My grandkids don't have a mom,” said Gisholt with tears in her eyes.
“She'll never get to see them marry and have babies and graduate from high school, all the things that I got to share with my kids, those are such important steps for mom's and they won't get to do that,” said Gisholt.
The Coos County District Attorney’s Office says this is one of the only times it’s ever pursued a plea deal in this kind of criminal court case. Jayme’s family opted for the appeal because it didn’t want to see the event relived in detail in Coos County Court.
Ultimately, Coos County District Attorney Paul Frasier says he’s satisfied with the outcome of the case as well.
Source
46-year-old Patrick Lee Horath was sentenced in Coos County Court Tuesday morning, in Judge Michael Gillespie’s courtroom.
Horath reached a plea-deal with the Coos County District Attorney’s office on Monday afternoon on one aggravated murder charge. He will serve life in prison, with the possibility of parole after 30 years. Horath will be 76 years old when he’s eligible for parole.
The other charges Horath was facing have been dropped.
The Coos County District Attorney’s Office says Patrick Horath sexually assaulted, then killed 31 year old Jayme Austin on November 9th, 2009. It happened at Jayme’s mother’s home in Fairview, just outside of Coquille.
Investigators with the Coos County Sheriff’s Office and the Coos County Major Crimes team began the case when Jamie disappeared on the 9th after not showing up for work.
One week later, Patrick Horath lead investigators to her body and he was charged with her death.
Jayme’s family says it is satisfied with the outcome of the case. Her mother and father participated in the plea deal negotiations.
However, Jayme’s death is a crime the family is still struggling to understand and deal with. Jayme’s violent death changed her parents, her two kids, her sister’s and other family members’ lives.
Jayme’s mother, Cindy Gisholt spoke to members of the media Tuesday morning after the sentencing.
“My grandkids don't have a mom,” said Gisholt with tears in her eyes.
“She'll never get to see them marry and have babies and graduate from high school, all the things that I got to share with my kids, those are such important steps for mom's and they won't get to do that,” said Gisholt.
The Coos County District Attorney’s Office says this is one of the only times it’s ever pursued a plea deal in this kind of criminal court case. Jayme’s family opted for the appeal because it didn’t want to see the event relived in detail in Coos County Court.
Ultimately, Coos County District Attorney Paul Frasier says he’s satisfied with the outcome of the case as well.
Source
Tuesday, June 15, 2010
Judge Wants to Know 'Who's on First' on Allen Stanford's Legal Team
After hearing Houston businessman R. Allen Stanford complain that he's having trouble preparing for his upcoming criminal trial and civil suits because he is in prison, the federal judge overseeing Stanford's insurance coverage suit promised to talk to U.S. District Judge David Hittner, who is handling Stanford's criminal case and has refused to allow Stanford out of prison on the ground he is a flight risk.
"I will urge Judge Hittner to reconsider," U.S. District Judge Nancy Atlas told Stanford during a nearly three-hour hearing Tuesday morning. "The only way I can see a release ... is there would be a very, very, very tight or close house confinement," she told Stanford, who represents himself pro se in Laura Pendergest-Holt, et al. v. Certain Underwriters at Lloyd's of London, et al.
Atlas will decide if the insurance companies holding the directors' and officers' policies for Stanford Financial Group and related companies can refuse to pay legal fees on the ground Stanford and other SFG executives engaged in money-laundering activities under terms of the policies.
Both Atlas and Hittner sit in the Southern District of Texas.
Atlas told Stanford she is concerned to hear from him that he has never met some of the lawyers who have been paid by the insurance companies for working on his legal teams and that he doesn't know what they have done for him. Stanford told Atlas he has never seen an invoice from any of the attorneys who have sought payment from the insurance companies for doing work for him in his criminal case before Hittner or in a civil case before U.S. District Judge David Godbey of the Northern District of Texas, Securities & Exchange Commission v. Stanford International Bank Ltd., et al.
Stanford did note that lawyers from Brewer Law Group of Washington, D.C., who represent him in the SEC suit, and his new criminal defense attorney, Robert S. Bennett of Houston, have actively worked on his legal matters.
Atlas set a hearing for next month, to be attended by all the lawyers who claim to currently represent Stanford, to determine "who's on first" in representing Stanford.
"We are going to get to the bottom of why so much is being spent on Mr. Stanford's defense," Atlas said, after hearing that the insurance companies have spent about $6 million on legal bills for Stanford so far.
Barry Chasnoff, a partner in Akin Gump Strauss Hauer & Feld in San Antonio who represents insurers Lloyd's of London and Arch Specialty Insurance Co., said he'd like to hear from any lawyers who were paid who "Stanford says shouldn't have been."
Atlas says she's not casting aspersions on any of the lawyers, but just wants to "figure out who's in, who's out" and determine why the "burn rate" of insurance money is so high.
Stanford is pro se in the coverage suit because his former attorneys from Austin's Visser Shidlofsky withdrew from the case with Atlas' permission, although they continue to represent three other former SFG executives in the coverage suit.
At Tuesday's hearing, Bennett sat next to Stanford, who was shackled and wore green prison garb; Bennett told Atlas he is Stanford's criminal defense lawyer and does not represent Stanford in the insurance coverage suit.
Stanford, former chairman of SFG, has pleaded not guilty to fraud and conspiracy charges related to an alleged conspiracy to defraud investors who bought about $7 billion in certificates of deposit sold through Stanford International Bank Ltd., as have the other defendants.
Source
"I will urge Judge Hittner to reconsider," U.S. District Judge Nancy Atlas told Stanford during a nearly three-hour hearing Tuesday morning. "The only way I can see a release ... is there would be a very, very, very tight or close house confinement," she told Stanford, who represents himself pro se in Laura Pendergest-Holt, et al. v. Certain Underwriters at Lloyd's of London, et al.
Atlas will decide if the insurance companies holding the directors' and officers' policies for Stanford Financial Group and related companies can refuse to pay legal fees on the ground Stanford and other SFG executives engaged in money-laundering activities under terms of the policies.
Both Atlas and Hittner sit in the Southern District of Texas.
Atlas told Stanford she is concerned to hear from him that he has never met some of the lawyers who have been paid by the insurance companies for working on his legal teams and that he doesn't know what they have done for him. Stanford told Atlas he has never seen an invoice from any of the attorneys who have sought payment from the insurance companies for doing work for him in his criminal case before Hittner or in a civil case before U.S. District Judge David Godbey of the Northern District of Texas, Securities & Exchange Commission v. Stanford International Bank Ltd., et al.
Stanford did note that lawyers from Brewer Law Group of Washington, D.C., who represent him in the SEC suit, and his new criminal defense attorney, Robert S. Bennett of Houston, have actively worked on his legal matters.
Atlas set a hearing for next month, to be attended by all the lawyers who claim to currently represent Stanford, to determine "who's on first" in representing Stanford.
"We are going to get to the bottom of why so much is being spent on Mr. Stanford's defense," Atlas said, after hearing that the insurance companies have spent about $6 million on legal bills for Stanford so far.
Barry Chasnoff, a partner in Akin Gump Strauss Hauer & Feld in San Antonio who represents insurers Lloyd's of London and Arch Specialty Insurance Co., said he'd like to hear from any lawyers who were paid who "Stanford says shouldn't have been."
Atlas says she's not casting aspersions on any of the lawyers, but just wants to "figure out who's in, who's out" and determine why the "burn rate" of insurance money is so high.
Stanford is pro se in the coverage suit because his former attorneys from Austin's Visser Shidlofsky withdrew from the case with Atlas' permission, although they continue to represent three other former SFG executives in the coverage suit.
At Tuesday's hearing, Bennett sat next to Stanford, who was shackled and wore green prison garb; Bennett told Atlas he is Stanford's criminal defense lawyer and does not represent Stanford in the insurance coverage suit.
Stanford, former chairman of SFG, has pleaded not guilty to fraud and conspiracy charges related to an alleged conspiracy to defraud investors who bought about $7 billion in certificates of deposit sold through Stanford International Bank Ltd., as have the other defendants.
Source
Sunday, March 28, 2010
Judge Keller defeats charge in execution case
| AUSTIN -- A state district judge has ruled that Sharon Keller, presiding judge of the Texas Court of Criminal Appeals, should not be punished for her part in refusing an appeal from a death row inmate in September 2007. Although defense attorneys for Michael Richard had tried to file an appeal after hours, Keller said the court closed at 5 p.m. Richard was executed that night. But District Judge David Berchelmann Jr. said in a Jan. 20 decision that Richard’s lawyers were to blame for not filing Richard’s appeal in time and that Keller “did not violate any written or unwritten laws.” The commission that filed the charge against Keller is not bound by Berchelmann’s decision. After considering the judge’s ruling, the commission can dismiss the charges, reprimand Keller or recommend she be removed from office. Keller’s attorney, Chip Babcock, said he would be surprised if the commission did anything but dismiss the charges after such a resounding decision in his client’s favor. The commission will meet to consider Berchelmann’s decision. Medina in GOP debate After the first Republican gubernatorial debate on Jan. 14, long-shot candidate Debra Medina has risen in the polls so much that she has been added to the Jan. 29 debate with Gov. Rick Perry and U.S. Sen. Kay Bailey Hutchison. Medina, the former Wharton County Republican chairwoman who carries a 9 mm pistol with her, crashed though the double-digit polling barrier to win a place on the debate stage in Dallas. Originally, debate sponsor Belo Corp. did not include Medina, which prompted loud outcries from her supporters. Some observers believe Medina’s growing support could throw the March 2 gubernatorial primary into a runoff. Though she has little chance of winning the primary election, she could prove a spoiler for either Perry or Hutchison. Perry hit for education funds President Barack Obama and U.S. Education Secretary Arne Duncan slammed Gov. Perry for refusing to apply for up to $700 million in federal grants to help Texas schools. Perry has said Texas will not participate because he doesn’t want to adopt national curriculum standards for English and math. Texas and Alaska are the only states to refuse to participate in a standard national curriculum. That non-participation would have cost Texas significant points in the competition for $4 billion in education grants. Perry refused to seek the grants, saying the curriculum standards signal a national takeover of public schools. Duncan said the Obama administration would never require that national standards be mandatory. Gunshots at Capitol Some lawmakers are calling for tighter security at the state Capitol after a Houston man fired several shots in the air from the building’s steps. Fausto Cardenas, 24, was arrested by Texas Department of Public Safety officers as he was trying to reload a pistol. Cardenas had tried unsuccessfully to enter the office of state Sen. Dan Patrick, R-Houston. That prompted some lawmakers to ask for metal detectors and other security measures at the Capitol. Gov. Perry dismissed those calls, saying he opposed checkpoints and metal detectors in the building. Legislative leaders said a working group would be appointed to study security measures at the Capitol. Efforts to ban handguns inside the Capitol have failed, in part because so many lawmakers carry concealed weapons. UT tuition hike urged A panel studying tuition at the University of Texas has recommended a 3.95 percent tuition increase for 2010-11 and again for the 2011-12 school year. The higher tuition is necessary to keep UT from cutting staff and programs, according to the panel composed of UT students, faculty and administrators. Without higher tuition, the school would be forced to trim more than $30 million from its budget over the next two school years. If adopted, tuition and fees would rise to $4,709 in 2010-11 and $4,895 in 2011-12. The report now goes to the UT Board of Regents for consideration. DMV head named Edward Serna has been named the first executive director of the new Texas Department of Motor Vehicles. Formerly assistant executive director for support operations at the Texas Department of Transportation, Serna headed the team that shifted motor vehicle services from TxDOT to the new DMV. The bill creating the new department was signed by Gov. Perry last June, and the agency began operations in November. The DMV oversees vehicle registration and titling, motor carrier authority and enforcement, licensing vehicle dealers and awarding grants to reduce auto theft. |
source |
Saturday, November 28, 2009
Texas firefighters balk at cell phone rules
AUSTIN, Texas — Austin firefighters are concerned their First-Amendment rights may be compromised by an Austin Fire Department code of conduct that limits the contents of any electronic communication between firefighters and anyone outside the department.
Firefighters will no longer be allowed to share information or send images from cell phones, Personal Digital Assistants or social networking sites under an amendment to the department's code of conduct.The code has been effective since Aug. 28, 2008, and it seeks to "define the platform of the acceptable set of behavior within the organization.
Its main objective is to further promote a higher standard of practice within the organization," according to the code.
The addendum, which refers to Twitter, Facebook and MySpace, states, "any written, auditory, and/or visual messages ... are the sole property of [the Austin Fire Department]."
The new clause is part of an older regulation that took effect roughly 30 years ago, said AFD Chief Rhoda Mae Kerr.
The new policy as a whole states that an AFD employee "shall not criticize or ridicule the department, its policies, its officers or other members by speech, writing, or other expression" when the criticism is slanderous and interferes with AFD discipline and damages the reputation or efficiency of another member.
The explanation was that the criticism rule has been there forever.
"That may be the case, but it still seems to be far-reaching and we think [it] may be crossing the line on First Amendment, and we think the language should be revised," said Stephen Truesdell, president of the Austin Firefighters Association, the firefighter's union.
Truesdell said the procedure is composed of rules so outdated that they are referred to as "muttonchops" and that the department has recently begun to consolidate old "largely ignored" rules, regulations and guidelines to publish them online.
"Now, you are resurrecting this old, archaic set of rules and [are putting] them in this modern format — what does this mean? Does this mean [AFD is] going to start enforcing these rules now that [they] modernized them?" he said.
Firefighters understand that disclosure of information regarding an ongoing investigation may endanger it, he said, and that criticism should be delivered through a union because of the hierarchical nature of AFD — which, if undermined, can lead to problems in emergency situations.
"I don't feel — as written — [the rule is] legal," said union lawyer Craig Deats. "It is overbroad because it can be interpreted to prohibit protective speech. I have been ensured that is not [AFD's] intent, and we have been exploring ways to try and make the language clearer."
He said that if firefighters feel the need to criticize the chief in matters of public interest that they should do so.
"That is a safety issue, and the public has a right to know," Deats said.
Deats said the firefighters' union believes the chief has the right to issue a code of conduct to regulate discipline.
They are seeking clarification from the chief that the speech rights are not being abridged.
"[The chief] is simply attempting to address the issue of people taking photographs of crime scenes [and sending] other personal private information," said Laurie Eiserloh, city of Austin assistant attorney.
"[She] is taking it under advisement and reviewing the policy right now, but I can tell you it was never her intention to infringe upon anybody's First Amendment rights."
Eiserloh said the goal is to make certain that the information that comes from AFD is accurate and that it doesn't infringe upon anybody's privacy rights or compromise a criminal investigation.
"I respect others to have different opinions — I don't always agree with them or understand them, but I accept them," Kerr said. "The policy had to be updated to reflect [cellphones, PDAs and social media]."
She said the upheaval of instantaneous communication had to be addressed and that the policy does not infringe upon the rights of employees to act as private citizens.
Kerr said there is a committee comprised of department members and legal representation whose goal is to review the policy.
AFD is willing to make changes to the policy in accordance with the association's requests, but there is no definitive timeline of when changes will be made. The review is ongoing, she said.
"There is a lot going on in the organization, and it's going to take us some time to catch up," Kerr said. "Our focus isn't always on the moment, but we are trying to look long range."
Source
Firefighters will no longer be allowed to share information or send images from cell phones, Personal Digital Assistants or social networking sites under an amendment to the department's code of conduct.The code has been effective since Aug. 28, 2008, and it seeks to "define the platform of the acceptable set of behavior within the organization.
Its main objective is to further promote a higher standard of practice within the organization," according to the code.
The addendum, which refers to Twitter, Facebook and MySpace, states, "any written, auditory, and/or visual messages ... are the sole property of [the Austin Fire Department]."
The new clause is part of an older regulation that took effect roughly 30 years ago, said AFD Chief Rhoda Mae Kerr.
The new policy as a whole states that an AFD employee "shall not criticize or ridicule the department, its policies, its officers or other members by speech, writing, or other expression" when the criticism is slanderous and interferes with AFD discipline and damages the reputation or efficiency of another member.
The explanation was that the criticism rule has been there forever.
"That may be the case, but it still seems to be far-reaching and we think [it] may be crossing the line on First Amendment, and we think the language should be revised," said Stephen Truesdell, president of the Austin Firefighters Association, the firefighter's union.
Truesdell said the procedure is composed of rules so outdated that they are referred to as "muttonchops" and that the department has recently begun to consolidate old "largely ignored" rules, regulations and guidelines to publish them online.
"Now, you are resurrecting this old, archaic set of rules and [are putting] them in this modern format — what does this mean? Does this mean [AFD is] going to start enforcing these rules now that [they] modernized them?" he said.
Firefighters understand that disclosure of information regarding an ongoing investigation may endanger it, he said, and that criticism should be delivered through a union because of the hierarchical nature of AFD — which, if undermined, can lead to problems in emergency situations.
"I don't feel — as written — [the rule is] legal," said union lawyer Craig Deats. "It is overbroad because it can be interpreted to prohibit protective speech. I have been ensured that is not [AFD's] intent, and we have been exploring ways to try and make the language clearer."
He said that if firefighters feel the need to criticize the chief in matters of public interest that they should do so.
"That is a safety issue, and the public has a right to know," Deats said.
Deats said the firefighters' union believes the chief has the right to issue a code of conduct to regulate discipline.
They are seeking clarification from the chief that the speech rights are not being abridged.
"[The chief] is simply attempting to address the issue of people taking photographs of crime scenes [and sending] other personal private information," said Laurie Eiserloh, city of Austin assistant attorney.
"[She] is taking it under advisement and reviewing the policy right now, but I can tell you it was never her intention to infringe upon anybody's First Amendment rights."
Eiserloh said the goal is to make certain that the information that comes from AFD is accurate and that it doesn't infringe upon anybody's privacy rights or compromise a criminal investigation.
"I respect others to have different opinions — I don't always agree with them or understand them, but I accept them," Kerr said. "The policy had to be updated to reflect [cellphones, PDAs and social media]."
She said the upheaval of instantaneous communication had to be addressed and that the policy does not infringe upon the rights of employees to act as private citizens.
Kerr said there is a committee comprised of department members and legal representation whose goal is to review the policy.
AFD is willing to make changes to the policy in accordance with the association's requests, but there is no definitive timeline of when changes will be made. The review is ongoing, she said.
"There is a lot going on in the organization, and it's going to take us some time to catch up," Kerr said. "Our focus isn't always on the moment, but we are trying to look long range."
Source
Sunday, November 15, 2009
Austin executive pleads guilty in gambling inquiry
Gordon Graves, the Austin millionaire who rolled the dice in 2005 when he founded a gambling enterprise of uncertain legality, agreed on Monday to plead guilty to a single felony charge of tampering with evidence as part of a sweeping deal to end three separate criminal prosecutions against his company, Aces Wired.
As part of the agreement struck in a Nueces County courtroom, three other Aces executives pleaded guilty to misdemeanor charges of hindering apprehension. The company also agreed to forfeit a little less than $1 million in cash and more than 350 game machines seized in a massive statewide raid on Aces' operations coordinated by the Texas attorney general's office in May 2008.
None of the Aces executives will spend any time locked up. Graves, 72, agreed to pay a $10,000 fine and to accept two years of deferred adjudication, during which he promised to stay out of the 8-liner business — so-named because of the potential number of tic-tac-toe-shaped winning combinations available to players. If he follows the conditions of the agreement, the third-degree felony charge will be dropped in 2011.
Aces Wired President and CEO Ken Griffith, Executive Vice President Knowles Cornwell and Vice President Jeremy Tyra also will pay $4,000 fines. Three of Aces' corporate subsidiaries will hand over another $30,000 in fines as part of the deal.
The case against Aces involved more than a half-dozen state and local law enforcement agencies and brought prosecutions against the company in Nueces, Bexar and Tarrant counties, which made it "the largest coordinated gambling prosecution in Texas history," according to a written statement from the attorney general's office. The various agencies will split the money forfeited by Aces.
An inductee of the Lottery Industry Hall of Fame and former chief executive of Multimedia Games Inc., an Austin-based gambling products company, Graves began Aces Wired to exploit a gray area in state gambling laws. Instead of rewarding players of its slot-machinelike devices with cash, which is illegal, Aces used a debit-cardlike system called "amusement with prize," in which customers accumulated points they could later redeem for merchandise.
Aces said that because the prizes weren't actual money, the system was legal. But prosecutors contended the cards were the same as cash.
"The card has a monetary value, and you can't tell me otherwise," said Adriana Biggs, chief of the Bexar County district attorney's White Collar Crime Division.
Graves was not available for an interview, but in a written statement he said he agreed to the plea bargain to spare his company and employees further prosecution.
"We believed that the amusement with prize electronic system was designed to comply with the spirit and letter of Texas's gaming laws. The Attorney General and state prosecutors felt differently. Thus, just as the captain of a ship is responsible for the actions of its crew, I accept responsibility and want to protect employees who innocently conducted business on behalf of the company," the statement said.
Stephen Fenoglio, one of a half-dozen attorneys hired by Aces to fight the charges, said another reason for the settlement was that Aces was running out of money. "The company had spent over $2.6 million in legal fees," he said. "There was a concern they would run out of money before they finished the legal battles."
Many 8-liner parlors are opened — and closed by police — across the state every year. Most are small, shadowy, mobile operations that run under law enforcement's radar.
Aces, by comparison, operated aggressively in the open. Its stock was publicly traded. Its parlors were well-lit and clean. The company advertised on giant highway billboards; for a while, it was a sponsor of the San Antonio Spurs.
Graves, who has other business interests, also contributed hundreds of thousands of dollars to influential politicians, including Attorney General Greg Abbott, Lt. Gov. David Dewhurst and Gov. Rick Perry.
Aces Wired opened its first gambling center in El Paso in late 2005 and four more the next year in Fort Worth, Killeen, Corpus Christi and Copperas Cove. It later opened centers in San Antonio and Amarillo. In public filings, the company foresaw sprinkling Texas with more than 60,000 of its machines. Graves also contemplated buying a dog track to place some of the machines.
In March 2007, however, Abbott released an opinion that Aces's prize system constituted illegal gambling. "It was very painful," Graves said at the time. "Like a wrecking ball."
Attorney general's opinions are advisory, and the company continued operating, maintaining that its games met the letter of state law. However, Bexar, Nueces and Tarrant counties, along with the state attorney general's office and several other counties, launched a massive undercover investigation into the company's operations. Fourteen months later, law enforcement officers swept into the company's 8-liner parlors in Corpus Christi, Fort Worth and San Antonio and shut them down.
Lawyers for the company complained that police overreached on the raids, confiscating records and bank accounts that had little to do with Aces operations. Bexar County agreed to return more than $100,000 it had confiscated from a bank account controlled by a company officer's wife, who had her own business.
Source
As part of the agreement struck in a Nueces County courtroom, three other Aces executives pleaded guilty to misdemeanor charges of hindering apprehension. The company also agreed to forfeit a little less than $1 million in cash and more than 350 game machines seized in a massive statewide raid on Aces' operations coordinated by the Texas attorney general's office in May 2008.
None of the Aces executives will spend any time locked up. Graves, 72, agreed to pay a $10,000 fine and to accept two years of deferred adjudication, during which he promised to stay out of the 8-liner business — so-named because of the potential number of tic-tac-toe-shaped winning combinations available to players. If he follows the conditions of the agreement, the third-degree felony charge will be dropped in 2011.
Aces Wired President and CEO Ken Griffith, Executive Vice President Knowles Cornwell and Vice President Jeremy Tyra also will pay $4,000 fines. Three of Aces' corporate subsidiaries will hand over another $30,000 in fines as part of the deal.
The case against Aces involved more than a half-dozen state and local law enforcement agencies and brought prosecutions against the company in Nueces, Bexar and Tarrant counties, which made it "the largest coordinated gambling prosecution in Texas history," according to a written statement from the attorney general's office. The various agencies will split the money forfeited by Aces.
An inductee of the Lottery Industry Hall of Fame and former chief executive of Multimedia Games Inc., an Austin-based gambling products company, Graves began Aces Wired to exploit a gray area in state gambling laws. Instead of rewarding players of its slot-machinelike devices with cash, which is illegal, Aces used a debit-cardlike system called "amusement with prize," in which customers accumulated points they could later redeem for merchandise.
Aces said that because the prizes weren't actual money, the system was legal. But prosecutors contended the cards were the same as cash.
"The card has a monetary value, and you can't tell me otherwise," said Adriana Biggs, chief of the Bexar County district attorney's White Collar Crime Division.
Graves was not available for an interview, but in a written statement he said he agreed to the plea bargain to spare his company and employees further prosecution.
"We believed that the amusement with prize electronic system was designed to comply with the spirit and letter of Texas's gaming laws. The Attorney General and state prosecutors felt differently. Thus, just as the captain of a ship is responsible for the actions of its crew, I accept responsibility and want to protect employees who innocently conducted business on behalf of the company," the statement said.
Stephen Fenoglio, one of a half-dozen attorneys hired by Aces to fight the charges, said another reason for the settlement was that Aces was running out of money. "The company had spent over $2.6 million in legal fees," he said. "There was a concern they would run out of money before they finished the legal battles."
Many 8-liner parlors are opened — and closed by police — across the state every year. Most are small, shadowy, mobile operations that run under law enforcement's radar.
Aces, by comparison, operated aggressively in the open. Its stock was publicly traded. Its parlors were well-lit and clean. The company advertised on giant highway billboards; for a while, it was a sponsor of the San Antonio Spurs.
Graves, who has other business interests, also contributed hundreds of thousands of dollars to influential politicians, including Attorney General Greg Abbott, Lt. Gov. David Dewhurst and Gov. Rick Perry.
Aces Wired opened its first gambling center in El Paso in late 2005 and four more the next year in Fort Worth, Killeen, Corpus Christi and Copperas Cove. It later opened centers in San Antonio and Amarillo. In public filings, the company foresaw sprinkling Texas with more than 60,000 of its machines. Graves also contemplated buying a dog track to place some of the machines.
In March 2007, however, Abbott released an opinion that Aces's prize system constituted illegal gambling. "It was very painful," Graves said at the time. "Like a wrecking ball."
Attorney general's opinions are advisory, and the company continued operating, maintaining that its games met the letter of state law. However, Bexar, Nueces and Tarrant counties, along with the state attorney general's office and several other counties, launched a massive undercover investigation into the company's operations. Fourteen months later, law enforcement officers swept into the company's 8-liner parlors in Corpus Christi, Fort Worth and San Antonio and shut them down.
Lawyers for the company complained that police overreached on the raids, confiscating records and bank accounts that had little to do with Aces operations. Bexar County agreed to return more than $100,000 it had confiscated from a bank account controlled by a company officer's wife, who had her own business.
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