The exterior of “Big Bucks Bingo” is shown Wednesday in Martinsburg. According to an indictment handed down Tuesday, defendants were operating illegal bingo and raffle games for a fraudulent charity known as Kids Against Drugs of W.Va., Inc., out of the building.
MARTINSBURG, W.Va. — A federal grand jury has charged seven Eastern Panhandle residents with operating a fraudulent charity and pocketing millions in illegal revenue, it was announced on Wednesday.
Brent Jackson, 45; Steve Crites, 45; James M. Cites, 72; Betty Crites, 68; Kristy Vanduzer, 43; Larry Webster, 68; and James R. “Jay” Crites, 37, all of Martinsburg, were named in each count of a 53-count indictment returned Tuesday and unsealed Wednesday, according to court documents.
A press conference was held Wednesday by United States Attorney William J. Ihlenfeld II of the Northern District of West Virginia to announce the indictment.
The defendants are alleged to have operated illegal bingo and raffles for a fraudulent charity known as Kids Against Drugs of W.V., Inc. and doing business as “Big Bucks Bingo,” according to the indictment.
The games were purportedly arranged to benefit the Fraternal Order of Police #83 and the Berkeley County Humane Society but the defendants are alleged to have retained 90 percent or more of the revenue generated. The defendants were able to pocket over $7 million through the games, Ihlenfeld said.
The defendants are each charged with 15 counts of mail fraud, 18 counts of money laundering, 18 counts of illegal monetary transactions, one count of money laundering conspiracy and one count of illegal gambling, according to court documents.
It is alleged one of the charity representatives for the Fraternal Order of Police noticed something was off about the operation and alerted authorities.
“Today’s indictments and arrests are the result of collaborative efforts to assure the residents of the Martinsburg area that law enforcement is vigilant at safeguarding their interests. Those who find ways to fraudulently benefit from non-profit organizations will be brought to justice,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “With both law enforcement and financial investigation expertise, IRS-CI agents are uniquely qualified to assist our law enforcement partners with these types of cases by following the money.”
The investigation was a culmination of efforts between the IRS, FBI, West Virginia State Police and the United States Attorney’s Office.
“We have frozen the money,” Ihlenfeld said. “Ultimately, we hope the money gets in the hands of those who should’ve benfitted.”
Authorities do not believe the charities had a role in the crimes.
“I feel comfortable in saying the charities had no idea,” said Assistant U.S. Attorney Paul T. Camilletti.
The defendants face up to 20 years in prison and a fine up to $250,000 for each mail fraud count; up to 20 years in prison and a fine up to $500,000 for the money laundering conspiracy count; up to 20 years in prison and a fine up to $500,000 for each money laundering count; up to 10 years in prison and a fine up to $250,000 for each monetary transactions count; and up to five years in prison and a fine up to $250,000 for the gambling count.
Staff writer Matt Dellinger can be reached at 304-263-3381, ext. 128, or www.twitter.com/MattDellJN.
