Ex-school system treasurer among two sentenced in Dayton

Wednesday, June 28, 2000 | 10:21 a.m.

Daniel L. Carozza, the Dayton schools treasurer from 1980 to 1990, was sentenced Tuesday to eight months confinement for running the gambling operation at the former Lakeview Athletic Club.

Carozza, who now works as a controller for a hotel-restaurant in Las Vegas, could have been sentenced to three years in prison.

U.S. District Judge Walter Rice said Carozza could serve his sentence at a community treatment center with work-release privileges. That was because Carozza cooperated with federal investigators and because the former Springboro club relied on an opinion from an attorney that its initial gambling activities were legal.

Jerry C. Crouch, one of Carozza's partners in the club, also drew a reduced sentence because he assisted law enforcement. Crouch was sentenced to two years in prison because of an additional sports betting operation unrelated to the club. Crouch, also now in Las Vegas, has had numerous gambling convictions dating to 1971.

Carozza had pleaded guilty to money laundering and conspiracy to conduct an illegal gambling business from November 1992 until March 1994. Crouch pleaded guilty to the same two counts, plus making a false statement in an income tax return.

The judge also ordered Carozza to pay $2,000 in fines and perform 150 hours of community service.

Crouch has agreed to forfeit more than $200,000. The judge also ordered that Crouch pay $30,000 in fines and $50,098 in back income taxes.

Rice noted that the club initially allowed only games such as gin rummy and posted a legal opinion advising members its operations were legal. But as the club's financial troubles mounted, blackjack and other games were added, investigators said.

Club members had gambling losses of more than $1.6 million.