The Grove Sun
October 27, 1996
By Janice Taylor
Staff Writer
TULSA – Testimony from gambling game vendors, George and Mike Roberts, owners of Ozark Amusements, Neosho, and budget shortfalls that coincided with the alleged extortion in the form of payoffs, highlighted the third day of testimony in the trial of suspended Ottawa County Sheriff Ed Walker.
Both of the Roberts admitted under cross examination that their testimonies were different from what was contained in the transcripts of the information they had given the grand jury earlier this year and from a statement that was made to federal agents, citing that those transcripts were must be wrong.
A shortage in Ottawa County Sheriff Ed Walker’s office budget surfaced early in 1994, county records show. At the same time that he was reported to be soliciting money pay-offs from club owners. Walkers operating budget for the sheriff’s office was reported to the Ottawa County Commissioners as being in trouble.
In February 1994, Walker asked the county commissioners for part of the revenue from the county sales tax for jail construction. He said his budget for salaries would not last through the end of the fiscal year in June.
The request was denied, but the commissioners indicated a supplemental appropriation from the general fund would be available to help the sheriff finish the year. The money would then be subtracted from his budget for the new fiscal year.
Walker’s defense team, Gary L. Richardson and Chad Richardson, Tulsa, are trying on cross-examination of witnesses to establish a plot to conspiracy among the gambling machine vendors to frame Walker.
They are also challenging the witnesses’ credibility because they have been charged in connection with the illegal gambling and could receive leniency in their sentences for testifying against Walker.
The prosecution led by U.S. Attorney Steve Lewis, is trying to establish a path tying Walker to five illegal gaming machine distributors who provided machines to county bars, restaurants and convenience stores and that he reportedly used the reasons of needing money to continue supplying the sheriff’s office with needed equipment, for soliciting the pay-offs. Walker is being accused of accepting pay-offs to keep quiet about the operations and to alert the owners if there was going to be a raid.
Mike Roberts testified that he met with Walker each week personally and gave him envelopes containing 10% of the proceeds from the alleged illegal gambling games owned by Ozark and located in Ottawa County for about a 15 month time span in 1994 and 1995.
He said that the first meetings were at the Norseman Statue located on the campus of Northeastern A&M College in Miami, but after they became more comfortable with each other, they met at Walker’s residence. He went on to say that the payoffs amounted to around $250 to $350 per week.
George Roberts testified that he had purchased the machines three years ago at a U.S. Marshal’s Service auction in Louisville, Ky. He presumed the machines had been confiscated in illegal gambling operation in other parts of the country.
He also testified that he had met with Walker at Don Hogan’s (owner of Hatties bar in Commerce which was raided and illegal games confiscated) residence in late February of early March 1994. He said that the sheriff asked for a share of the profits from the games located in Ottawa County.
Roberts said the sheriff, “said he would notify everybody if there was a raid coming down.” We had heard rumors of raids from time to time and would have to remove the machines and then put them back.
He said that the sheriff also threatened that if club owners did not make the payments, "he would park a deputy across the street so that people would not want to go in and drink.”
“I agreed to make the payments, because I had been operating in the county and did not want to move out,” Robert said. “It did give me a certain amount of confidence in not having the machines raided by paying off the sheriff.
Hogan had testified on Tuesday that “Walker first approached me in February of 1994, about making the pay-offs. He questioned me as to whether the area bars usually made pay-offs to the sheriff. I told him that I had been in the business of 28 years and had not ever made a pay-off to anyone. He started complaining on the condition of their vehicles and lack of funding for his office.
I set up the meeting between Roberts and Walker at my residence, but it was held on the outside, and I didn’t participate. After the meeting, Roberts told me that the sheriff had demanded 10% of the profits from “Hatties Bar” in Commerce and that were going to start paying it. This is when I started putting 10% in cash with a not marked “W” for Walker separate from the other profits.
Judy Hogan, co-owner of Hatties Bar, testified that Robert’s son, Mike, came to their bar every Wednesday to check the machines and collect what had been a 50-50 split of the winnings between the vendor and the Hogans.
She also said, “Under this new arrangement, 10% was taken out of the winnings and marked for Walker and given to Mike Roberts, as well.”
“It is known that people could gamble at Hatties and other bars in Ottawa County,” she continued. “ATF Agents has watched me play the games during inspections and nothing ever said before.”
In July and November of 1994, Walker sent letters to all of the club owners in Ottawa County. They were entered as evidence at Tuesday’s hearing.
The first letter was reported to have told club owners the sheriff was not regularly patrolling the bars, so long as they took care of their own problems. It included that the sheriff’s office would not tolerate drug trafficking or the sale of alcohol to underage persons and that he (Walker) was cutting them some slack on their video gambling machines.
The second letter allegedly said that the district attorney’s office had received numerous complaints about gambling in the clubs and that if it was not stopped, all of the machines would have to be removed.
Both of the Hogans testified that, “They had been informed by Mike Roberts to expect the letters, but to just ignore them.”
Both of the Hogan’s have pleaded guilty to federal charges of illegal gambling and conspiracy in the Northeastern Oklahoma sting of several business establishments that allowed poker gambling machines to be operated on their premises with cash payments being made to customers.
Also under subpoena to testify is Myrna DuBoise, owner of Jose’s Bar, Chet Brewington, owner of the Thunderbird Lounge and Peggy Williams, owner of the former P.J.’s Club, all of which are located in Miami. They are expected to testify that they gave part of their profits to Michael Roberts who in turn would give them to Walker.
The suspended sheriff is being tried on a 12-count federal indictment alleging extortion, aiding and abetting illegal gambling and obstruction of justice in connection with last fall’s raids by federal agents.
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