Seven men charged with illegal gambling plead not guilty

Wednesday, Dec. 22, 2004 | 9:20 a.m.

CEDAR RAPIDS, Iowa -- Seven men charged in federal court with felony gambling offenses pleaded not guilty on Monday.

David Kolsrud, Kevin Flanagan, Jerry Burroughs Jr., Jerry Burroughs Sr., John Zaspal, and Spencer "Al" Lathrop, all of Cedar Rapids, and Paul Hostak, of Hiawatha, appeared with their attorneys before Judge John Jarvey.

Kolsrud is charged with illegal gambling and engaging in illegal monetary transactions.

Court documents allege he is the leader of an illegal gambling operation.

The remaining six men are charged with one count of illegal gambling.

Assistant U.S. Attorney Sean Berry said each of the men was caught making phone calls as part of a bookmaking operation.

"Thousands of calls were intercepted," Berry said. "It was a very busy telephone."

Indictments allege the men were involved in the operation between April 16, 2001, and Sept. 21, 2002.

Court documents said the men "conducted, financed, managed, supervised, directed and owned an illegal sports betting and parlay card bookmaking operation" that grossed at least $2,000 a day in at least one single day, a requirement for a federal gambling offense.