Businessman sentenced to 25 years in bingo scheme

Terry Kinney

Monday, March 10, 2003 | 9:41 a.m.

CINCINNATI -- During a sentencing hearing for an Akron man convicted of running an illegal instant bingo operation, it was alleged that some of the money could be tied to terrorism.

Prosecutors said although most of the money from tickets sold in the name of the United Saghbeen Society and other charities was stolen before it got to the charity, some money that reached the United Saghbeen Society was diverted to Middle East terrorists.

Philip F. George Jr., 43, was convicted last week on eight of 11 charges and on Thursday was sentenced to 25 years in prison.

Prosecutors had an investigator from the Ohio Department of Public Safety read into the record a letter from the head of New York-based Interfor Inc., a private international investigative company.

That letter alleged that money from the United Saghbeen Society was diverted to militant Middle Eastern terrorist groups such as Hezbollah and Hamas.

Defense attorney Robert Gutzwiller said the allegation was laughable. The society for decades has supported a Christian girls school in Lebanon, and Lebanese Catholics -- such as George and his family -- would have no reason to support Islamic terrorists, he said.

"Our parents are rolling over in their graves," George's uncle, Thomas Jesser of Fairlawn, said later. "Every penny sent to the United Saghbeen Society is accounted for."

But the allegation seemed to strike a chord with Hamilton County Common Pleas Judge Robert Ruehlman.

"This money was going for a very bad purpose," Ruehlman said.

Prosecutors said George was the kingpin of an illegal gambling scheme in which so-called tip-tickets were sold at dozens of bars, stores and clubs in northeast Ohio and in Hamilton and Clermont counties in southwest Ohio.

The illegal sales grossed more than $50 million between 1998 and 2000 while George, numerous subordinates and scores of tavern operators shared in profits that should have gone to charities, prosecutors said.

"He used names of charities and lined his own pocket," Ruehlman said. "We're not talking just a few bucks, it's millions and millions of dollars."

Bingo and instant-bingo are allowed under Ohio law if all the proceeds go to charity.

Defense lawyers argued that George did not lead the operation but was a dupe of a longtime instant-bingo salesman, James H. Jackson of Tallmadge.

Jackson, 64, testified for prosecutors as part of a plea agreement that limited his sentence to no more than four years in prison. He is awaiting sentencing.

Jackson and other witnesses testified that they took tens of thousands of dollars to George in brown paper bags.

When investigators confiscated about $4.8 million in a series of raids on Nov. 29, 2000, they found about $3.6 million at Jackson's house, hidden in a freezer, garbage bags and elsewhere. No money was found at George's home or business.

"The lower-end guys are not as sharp. That's why they get caught," Ruehlman said.

George, who did not testify during his trial, declined to make a statement during the sentencing hearing.

"He wants the court to know he thinks the whole business was a terrible mistake and regrettable," Gutzwiller said.

"He was not involved in this by accident," Ruehlman said.

He sentenced George to six months in county jail on each of three misdemeanor counts, two of gambling and one of operating a gambling house, but allowed those to run concurrent with the five felony counts.

George was given a five-year sentence and $10,000 fine on each of three counts of money laundering, to be served consecutively. Ruehlman combined an eight-year sentence for conspiracy and a 10-year sentence and $20,000 fine for engaging in a pattern of corrupt activity.

George had been acquitted of cheating, telecommunications fraud and an additional count of money laundering. Gutzwiller said the sentences on the eight remaining charges would be appealed.

George also faces similar, unrelated gambling charges in Lorain County, where he was among 41 people indicted in September on charges related to illegal instant bingo games.