CLEVELAND, Ohio -- A Wisconsin distributor who sold illegal video slot machines to businesses across Ohio pleaded guilty Thursday to gambling-related charges and agreed to turn over $35,000 in forfeited funds.
Erin Nelson, 34, the president of 8 Line Supply, and her company entered the pleas to eight charges -- including attempted money laundering, possessing criminal tools and gambling -- before Cuyahoga County Common Pleas Judge John Sutula.
Nelson could face probation when Sutula sentences her and the business on March 12. He also could sentence her to up to three years in prison. The company could be fined.
"What's crucial about this conviction is that it establishes a precedent and proof that all of these games are per se slot machines and can't be disguised as skill games or any other device legal to operate anywhere in Ohio,'' said Greg Croft, the agent in charge of the Ohio Investigative Unit, in a statement after the plea.
Prosecutors said the company sold 23,000 video slot machines, parts and components to bars, restaurants and other businesses throughout Ohio starting in 2008. Prosecutors put the cost at $2.7 million.
The company is from De Pere, Wis., a suburb of Green Bay. Authorities said it provided a variety of machines, including Dorothy's Fantasy, Captain Jack, Fruit Bonus 1996, as well as WOZ and Ghouls Night Out.
Other games listed in the charges include Black Beard, Penguin Party, Dorothy's Fantasy and Crazy Bugs.
Carl Sullivan and Christopher Schroeder, assistant county prosecutors, said the charges are part of a large-scale investigation that culminated in the raids of several companies and homes last April.
8 Line Supply's customers included convicted gamblers Martin Sarcyk and Kurt Immler, the prosecutors said. The machines were later placed in bars and restaurants across Northeast Ohio. The bars and restaurants made cash payments to patrons who won.
"(8 Line Supply and Nelson) have admitted they are in the gambling business,'' said county Prosecutor Timothy J. McGinty. "Any absurd claims that these are games of skill have been destroyed by their guilty plea.''
In January, Common Pleas Judge Deena Calabrese sentenced Sarcyk, of North Royalton, to 18 months in prison after he had pleaded guilty to gambling-related charges. Authorities seized $1.1 million from his home and business.
In December, Common Pleas Judge Michael Russo placed Immler, of Dalton in Wayne County, on probation for a year after he pleaded guilty to gambling charges. Officials seized $597,000 from him, much of it found in his bedroom nightstand.
Prosecutors said investigators in Ohio gained the help of authorities in Wisconsin in June. That's when law enforcement officials there, with a search warrant, seized a hard drive, a notebook labeled "Shipping Log'' and several boxes of records from 8 Line Supply.
Authorities also seized a list of customers in Ohio. Prosecutors said the investigation into video gambling here continues.
Besides Immler and Sarcyk, eight bars have pleaded guilty to gambling charges stemming from the investigation.
Prosecutors said the bars include: B&G Old World Tavern in Euclid; the Blue Parrot in Euclid; Browns Tavern in Newburgh Heights; Flyers Bar and Grill in Parma Heights; Highlander Tavern in Cleveland; Pearl Road Tavern in Cleveland; 2nd Chance Lounge in Cleveland; and Uncle Joe's Bar and Grill in Parma Heights.
Five establishments in Medina, Ashtabula and Wayne counties also were convicted.