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Oklahoma City, Oklahoma – Today, TEDDY DRYDEN MITCHELL, 59, of Oklahoma City, was sentenced by United States District Judge David L. Russell to serve 27 months in federal prison for running an illegal gambling operation, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.

On September 24, 2012, an 81-count federal indictment was unsealed charging Mitchell and other individual defendants with crimes involving an illegal gambling operation and the money laundering of proceeds derived from that operation. Specifically, the Indictment alleged that the defendants (1) operated 'High Stakes' poker games from a residence located at 640 N.W. 150th, in Oklahoma City; (2) took bets and wagers on sporting events on behalf of betting clients; (3) used an illegal Internet gambling website in interstate and foreign commerce for the benefit of betting clients; (4) laundered the proceeds of illegal gambling activities; and (5) committed various crimes related to the operation of an illegal gambling business, including but not limited to, interstate travel in aid of racketeering and use of a wire communication facility to transmit betting information.

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The Indictment alleged that Teddy Mitchell organized poker games at the residence and also operated as a traditional bookmaker by taking sports bets for clients both in person and over the phone. Later, it was alleged, betting clients were provided a password to access a Costa Rican sports betting Internet website. It was alleged that to further their gambling operation the defendants conspired to launder over $8.1 million in money derived from the gambling operation.

Teddy Mitchell Plea and Sentence

On July 8, 2013, Mitchell pled guilty to running an illegal offshore internet sports betting business and conspiracy to commit money laundering. As part of his plea, Mitchell admitted that he conducted, financed, managed, supervised, directed or owned all or part of the gambling business that violated Oklahoma law and that the business was in substantial continuous operation for more than 30 days or had gross revenue of $2,000 or more on any single day. In addition, he admitted that he conspired to launder funds to promote the illegal internet gambling business.

At the sentencing hearing today, Judge Russell ordered Mitchell to serve 27 months in federal prison, followed by two years of supervised release

Other Defendants

Eight other men were convicted and sentenced in this case, as follows:

RICHARD ALLEN HANCOCK, 68, of Yorba Linda, California, pled guilty on March 15, 2013, and was sentenced on August 21, 2013, to serve 16 months in prison, followed by three years of supervised release.

GARY JOHN GIBB, 69, of Reno, Nevada, pled guilty on April 5, 2013, and was sentenced on September 11, 2013, to serve 16 months in prison, followed by three years of supervised release.

DAVID BRUCE LOVELAND, 66, of Oklahoma City, pled guilty on July 16, 2013, and was sentenced on October 24, 2013, to serve six months home confinement, three years’ probation, and pay a $2,000 fine.

BILLY NICK MITCHELL, 24, of Oklahoma City, pled guilty on July 16, 2013, and was sentenced on October 24, 2013, to serve two years’ probation, pay a $1,000 fine, and pay restitution of $820.

MICHAEL LEE McCULLAH, 35, of Ardmore, Oklahoma, pled guilty on July 16, 2013, and was sentenced on September 10, 2013, to serve one year probation, pay a $1,000 fine, and pay restitution of $884.

JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.

JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.

JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.

Forfeiture of Illegal Proceeds

As part of this case, the government also seeks a forfeiture money judgment of over $8.1 million and the forfeiture of multiple tracts of real property, vehicles, and cash held in various accounts.

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This case is the result of a joint investigation including the Federal Bureau of Investigation and IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Ashley L. Altshuler and Edward J. Kumiega.

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