1. BOOK ‘EM DANO: The investigation and prosecution of charitable gaming crimes

2. Formation of Agency State and Federal problems with criminal enforcement and jurisdiction Constitution was amended in 1992 to allow for charitable gaming Statute was passed in 1994 Retention percentage was significantly amended in 1998 Currently a $550 million industry; has been as high as $608 million

3. Enforcement division was added in 2000 The Division of Enforcement has two branches - Audit and Investigation The division has strong enforcement powers, which include examining charitable gaming supplies and equipment, and conducting in-depth audits and investigations Enforcement in licensing was emphasized in 2002 Significant regulation overhaul in 2006 emphasizing record-keeping

4. The Audit Branch 9 auditors and a CPA Conducts in depth audits Their biggest challenge is performing audits in an industry that does not have standardized record-keeping requirements Before they can audit, they first must determine how a certain organization keeps their records and then conduct the audit accordingly New record-keeping standards in regulations should help The new regulations set forth standards provide suggested session sheets

5. The audits can lead to administrative actions or criminal investigations The audits can lead to administrative actions or criminal investigations The auditors have been integral to almost all criminal investigations and have testified at trial The auditors have been integral to almost all criminal investigations and have testified at trial

6. Performing the audit An Organization can be selected by: Referral; Complaint; 40% problem; or Routine. The auditor first contacts the organization and makes copies of the org files in the Office Meets with org and goes over internal control questionnaire Review records (session sheets, bank info, distributor invoices)

7. Sends Preliminary Audit Report (PAR) Reviews response (if any) Sends Final Audit Report (FAR) and write violations Contacts investigation branch if necessary

8. Investigations 5 investigators located throughout the state Sworn law enforcement officers with full arrest powers Also work with other law enforcement officials in joint investigations and provide assistance in their investigations Cases received from outside complaints or inside referrals

9. Jurisdiction limited to: –Diversion of charitable gaming funds –Illegal charitable gaming –Gambling offense on a licensed premise –Gambling offenses committed in conjunction with charitable gaming –Theft and embezzlement regarding gaming funds –Forgery and fraud in conjunction with charitable gaming –Destruction of property owned by a licensee –Felonies committed on a licensed premise or in front of an investigator

10. Possible Criminal Violations Diversion of Charitable Gaming Funds Theft by failure to make required disposition Criminal syndication Forgery 2d Promotion of gambling

11. Possession of a gambling device Federal tax evasion Federal mail fraud

12. Cases and Resolutions Rupert Pedigo FOP #28 Wildcard Larry Vinson Steve Hall Sparta VFD Danny Rains Polio Survivors Whitley Co. Football Boosters

13. Questions and Discussion