FBI Investigating Video Gambling Allegations in South Congaree

On May 1st, the FBI, in cooperation with state police, raided the town hall in South Congaree, shocking the small Lexington County town. At first, little was known about why the FBI had chosen to raid a town of about 2,300 residents. However, after the investigation started, evidence surfaced of a potential video gambling ring involving some of the town’s administrators.

Reportedly, agents phoned former Mayor Jerry McCormick at his home, and he met the federal and state authorities at town hall.

“We fully cooperated with them and opened up and said they could see anything they want,” the mayor said. “So they went through the courthouse looking and they took some items.”

The same day, the FBI, IRS, and state police also raided the Richland County home of Magic Minutes sweepstakes company owner L.W. Flynn. Officers involved would not comment on whether the two raids were related.

South Carolina began cracking down on wide-spread video poker operations in 1999, when lawmakers passed a bill that defined all video poker and some sweepstakes machines as illegal gambling. For a few years, gambling operations disappeared. However, some operators found a loophole in the law, which allowed for a boom in sweepstakes machines.

Legislators in South Carolina recently updated video gambling legislation to include sweepstakes machines, which had become immensely popular as a form of gambling. However, because they offered small items for purchase, such as phone cards, the machines fell into a legal gray area, making it difficult for local judges to rule in potential illegal gambling cases. The new legislation passed both the state’s house and senate with little controversy, and Governor Nikki Haley gladly signed it into law.

“I honestly don’t know what it’s about,” said councilman Jerry Smith. “We’ve been assured it has nothing to do with the town of South Congaree itself and is directed towards our administrator and our police chief.”

Another South Congaree Administrator Resigns in Wake of Video Gambling Investigation

In the wake of all the video gambling controversy, a fifth town administrator has resigned just days after four of his compatriots.

Town Council member Jerry Smith said that Robert Cade, the chairperson of South Congaree’s Finance Committee, submitted his resignation on Monday, June 3rd.

He is the fifth in a series of resignations following the FBI’s raid on the town to find evidence of a video gambling operation.

In the past two weeks, other resignations include Mayor Jerry McCormick, Councilman Rick Green, town administrator Melisha Shumpert, and police chief Jason Amodio.

Smith said that a special election to find their replacements would be conducted on August 27th.

The Strom Law Firm Prosecutes Operators of Illegal Video Gambling Machines

Strom Law Firm was one of the first law firms to bring suits against the video gambling industry in the late 1990s seeking to recover gambling losses. Since that time, Strom Law Firm has litigated a couple of video gambling cases, including a case against a local Columbia restaurant.

With the new influx of video gambling machines, South Carolina citizens face substantial gambling losses, and damage to their families and communities. South Carolina has several laws in place to protect gamblers and their families from the financial ruin that their gambling addiction can cause.

A family or relative may file suit anytime within one year from the time the money is lost gambling. If you or a family member has lost money in video poker within the last year, you may have legal rights, and should contact a lawyer immediately.

The attorneys at the Strom Law Firm have experience with illegal video gambling cases. We offer a free consultation to discuss the facts of your case. To have a lawyer evaluate your case, please call us at 803.252.4800. Do not let video gambling ruin your future.