Las Vegas Sun

April 16, 2024

Video poker corruption probe lands legislator

Rep. Sebastian "Buster" Guzzardo, D-Independence, is the first Louisiana legislator to be charged with gambling corruption. He was arraigned Wednesday to 11 counts accusing him of helping organized crime infiltrate Louisiana's video poker industry.

"He was very active -- ready, willing and able to carry out whatever services," U.S. Attorney Eddie Jordan said at a news conference announcing the indictments.

Jordan said the investigation continues and there may be more indictments.

Charges included obstructing law enforcement to help two gambling businesses operating as mob fronts, extortion by a public official, conspiracy, conducting an illegal gambling business, aiding racketeering and mail fraud.

Guzzardo, 73, served on the House oversight committee on gambling legislation. He was re-elected in a November runoff.

Another federal grand jury in Baton Rouge is investigating allegations of bribery between legislators and truck stop casinos.

Jordan said Guzzardo is an associate of the Marcello crime family in New Orleans. Crime family members called him their "Man in the Country," according to the indictment.

At mid-morning, Guzzardo was in the House Criminal Justice Committee, voting with the minority against Gov. Mike Foster's bill to repeal gambling in any parish where a majority of voters do not vote to keep it.

"Our timing was completely motivated by how we conducted our investigation," Jordan said.

Guzzardo surrendered to the Federal Bureau of Investigation and pleaded innocent at his arraignment. U.S. Magistrate Louis Moore Jr. allowed Guzzardo to be released on $150,000 bond on the condition he would not leave Louisiana and would have nothing to do with gambling.

"We're going to tell him not to say anything to anybody," defense attorney Nick Noriea Jr. said.

To date, 24 people have been convicted of using two mob-controlled front companies -- Worldwide Gaming of Louisiana and Louisiana Route Operators -- to infiltrate Louisiana's video poker industry and defraud Bally Gaming Inc., a major video poker machine manufacturer.

"There was an additional investigation that had to be conducted," Jordan said. "That was why he wasn't indicted (earlier)."

The extortion counts allege that Guzzardo's pay included $1,200 cash, a fax machine, and having a Worldwide Gaming truck and crew move his daughter's belongings from Colorado to Louisiana. Noriea has said that the fax machine was used, and that Guzzardo saved the state money by using it in his office.

"Obviously, he did what he did and he did it for very little," Jordan said.

If convicted on all counts, Guzzardo faces a maximum of 100 years in prison and $1.7 million in fines.

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