Published on: September 12, 2024, 09:33h.
Last edited on: September 12, 2024, 09:33h.
A man from North Carolina who won close to $1.5 million playing slot machines at a tribal casino has admitted to federal charges for stealing hundreds of thousands of dollars from his workplace.
Russel Edward Hester, aged 72, from Rutherfordton, made a formal admission this week on accusations of wire fraud and money laundering. He could face up to 30 years in jail upon his sentencing later this year.
Hester confessed to utilizing a state debit card to support his gambling habit. As the manager of an Alcohol Beverage Control (ABC) facility in his hometown, he had the government spending card in his possession.
Federal prosecutors stated that Hester made routine trips to the Catawba Two Kings Casino in Kings Mountain, which was almost an hour drive from Rutherfordton, and utilized government funds for gambling purposes.
Government Gambling Card
Dena King, the U.S. Attorney from the Western District of North Carolina’s Department of Justice, mentioned that Hester withdrew at least $374,807.10 at the tribal casino’s ATM through 192 transactions. The illicit transfers were carried out between December 2021 and October 2023.
Hester had control over the ABC’s local financial accounts and records as he had been the manager of the liquor store for almost a decade. He confessed to using the government funds to finance his addiction to slot machines.
As the store manager, Hester had access to, and authority over, the Board’s financial accounts and records, wrote checks for bill payments, and was accountable for drafting the annual budget. He was also responsible for supplying all necessary data for the yearly independent third-party audit of the ABC store,” King wrote.
According to casino records, Hester won about $1.5 million from playing slot machines. Instead of returning the stolen money, Hester deposited the $1,469,368 into his personal bank accounts.
On one occasion – July 4, 2023 – Hester withdrew $3,000 in cash using the ABC debit card and put the money into a slot machine. He later won a jackpot of $18,350 and informed the casino staff that he preferred to collect his winnings through a check. He then deposited the check into his personal account.
King mentioned that Hester falsified the ABC’s financial records and provided counterfeit bank account statements during the yearly audits by the Alcohol Beverage Control in an unsuccessful effort to hide his actions.
The ABC store from which Hester stole and managed is situated at 441 S. Main St. In North Carolina, ABC stores are mandated to utilize their net earnings to support local law enforcement and K-12 public education. The state has been in charge of the sale of hard liquor bottles since 1937.
Casino Construction
Hester’s unlawful activities were carried out at the Catawba Nation’s temporary casino. The venue boasts around 1,000 slots and electronic gaming devices. The provisional gaming area introduced a dozen live dealer table games in June.
After numerous delays, the tribe recently initiated construction on its $700 million permanent casino resort located off Interstate 85 at Exit 5. The upcoming venue will feature 4,300 slots, 100 live dealer table games, a sportsbook, 11 dining venues and bars, and a 400-room hotel.
The resort is set to launch in early 2026.