A man who operated a $400 million Caribbean-based sports bookmaking operation for Wisconsin and Nevada managers was sentenced Tuesday in federal court to the four months he has been detained since his arrest.
Rick McColley, 56, formerly of Florida, was the general manager of Gold Medal Sports, a sport bookmaking firm located on Curacao and controlled largely by Duane Pede of Amherst Junction, Wis.
Pede hired McColley in 1996 as Gold Medal's sales manager. Through unlawful phone and Internet wagering, the business took in more than $400 million on sporting events until 2002.
"You can't pick up a phone and legally place a bet on a sporting event, except horseracing, unless you go to Curacao or you're in the state of Nevada," Assistant U.S. Attorney Dan Graber said after the court session Tuesday.
McColley told U.S. District Court Judge Barbara Crabb that he didn't realize that was the case when he obtained the Curacao licenses that Gold Medal would need, but he admitted that he didn't check with U.S. officials.
McColley, Pede, and five others connected to Gold Medal were indicted in 2002 on several wire fraud counts. The others were Pede's nephew and Gold Medal's chief financial officer, Randy Moreau of Portage County, Pede's attorney Bruce Meagher, Nevada accountant Francis Howard, Orlando, Fla., attorney David Tedder and Jeff D'Ambrosia of Nevada.
The FBI built its case against the sportsbook by placing $1,000 bets on football games in calls from Madison and Beloit to Curacao, where McColley was on the other end of the phone line, Graber said. E-mails recovered during the investigation showed Pede giving orders or approving of McColley's management of the island sportsbook, Graber said.
The government considered Pede, Tedder and D'Ambrosia "Tier I" defendants, most responsible for the illegal wagering operation. Each was initially sentenced to five years in prison and fined $100,000. Pede's and D'Ambrosia's sentences were later reduced after testifying at trial against Tedder.
McColley, Moreau, Meagher and Howard were considered less culpable defendants and served sentences of six months or less, with Moreau's served in home confinement.
McColley's attorney, David Vinikoor of Fort Lauderdale, Fla., asked Judge Crabb to sentence his client to "time already served," which would be about equal to the other "Tier II" defendants.
Graber didn't object to the recommendation, and Crabb agreed, saying McColley's health has deteriorated during the four months he's served in prison and that he did attempt to determine what licenses Gold Medal needed in Curacao.
McColley was a professional gambler for the past several years and a fugitive until his arrest in May in Panama, where he was traveling to a poker tournament. McColley will be released from custody after prison administration has completed his processing.
Rick McColley, 56, formerly of Florida, was the general manager of Gold Medal Sports, a sport bookmaking firm located on Curacao and controlled largely by Duane Pede of Amherst Junction, Wis.
Pede hired McColley in 1996 as Gold Medal's sales manager. Through unlawful phone and Internet wagering, the business took in more than $400 million on sporting events until 2002.
"You can't pick up a phone and legally place a bet on a sporting event, except horseracing, unless you go to Curacao or you're in the state of Nevada," Assistant U.S. Attorney Dan Graber said after the court session Tuesday.
McColley told U.S. District Court Judge Barbara Crabb that he didn't realize that was the case when he obtained the Curacao licenses that Gold Medal would need, but he admitted that he didn't check with U.S. officials.
McColley, Pede, and five others connected to Gold Medal were indicted in 2002 on several wire fraud counts. The others were Pede's nephew and Gold Medal's chief financial officer, Randy Moreau of Portage County, Pede's attorney Bruce Meagher, Nevada accountant Francis Howard, Orlando, Fla., attorney David Tedder and Jeff D'Ambrosia of Nevada.
The FBI built its case against the sportsbook by placing $1,000 bets on football games in calls from Madison and Beloit to Curacao, where McColley was on the other end of the phone line, Graber said. E-mails recovered during the investigation showed Pede giving orders or approving of McColley's management of the island sportsbook, Graber said.
The government considered Pede, Tedder and D'Ambrosia "Tier I" defendants, most responsible for the illegal wagering operation. Each was initially sentenced to five years in prison and fined $100,000. Pede's and D'Ambrosia's sentences were later reduced after testifying at trial against Tedder.
McColley, Moreau, Meagher and Howard were considered less culpable defendants and served sentences of six months or less, with Moreau's served in home confinement.
McColley's attorney, David Vinikoor of Fort Lauderdale, Fla., asked Judge Crabb to sentence his client to "time already served," which would be about equal to the other "Tier II" defendants.
Graber didn't object to the recommendation, and Crabb agreed, saying McColley's health has deteriorated during the four months he's served in prison and that he did attempt to determine what licenses Gold Medal needed in Curacao.
McColley was a professional gambler for the past several years and a fugitive until his arrest in May in Panama, where he was traveling to a poker tournament. McColley will be released from custody after prison administration has completed his processing.