Former lawmaker linked to illegal bookies

Tuesday, June 13, 2006 | 7:37 a.m.

CARSON CITY - A former leader in the Assembly runs an illegal bookmaking operation in Carson City that was raided by state and federal agents last week, state officials said Monday.

Court records allege that Charlie Joerg, who now runs a casino in Costa Rica, "is believed to be the boss of the entire operation" in Carson City. Authorities believe Joerg's son, Alan, also was involved in the bookmaking scheme, according to the records.

Search warrants were issued for three houses, one belonging to the elder Joerg, and agents broke down the door of at least one of the homes in Wednesday's raid.

Four people were arrested and more arrests are expected.

Karl Bennison, supervisor of the Reno enforcement office of the state Gaming Control Board, said Monday that Joerg, who was speaker pro-tempore of the Assembly in 1985, was not arrested.

Joerg, who served eight years in the Legislature before being elected to the Senate in 1986 for a four-year term, is in Costa Rica and could not be reached for comment.

Bennison said that at one of the homes the phones were ringing when agents broke down the doors and more calls came in as the raid was in progress.

In the request for the search warrant, gaming agent David Andrews alleged that the individuals in Carson City running the illegal bookmaking were associated with Joerg and his son.

An affidavit filed with the court said Alan Joerg received packages via Federal Express with large sums of money hidden in magazines. Informants told federal agents that there was as much as $100,000 at his home, money that was later moved to his father's home for safekeeping, the documents said.

The investigation began after an informant contacted FBI agent Edward Duffer in 2004. A second informant later came forward.

Seventeen state agents and five FBI agents conducted last week's raid.

The four men arrested were Michael D. Lowe, 54; Frank C. Edmiston, 31; Mathew "OK" Cote, 30; and Leslie G. McElroy, 51, said to be the manager of the illegal operation in Carson City.

They are charged with operating an illegal bookmaking operation, a felony, and conducting communications in an illegal manner, a misdemeanor.

The agents seized betting markers, payout sheets, telephones, computers, television sets, a pistol and other evidence.

One of the informants wore a wiretap and recorded McElroy as saying that the "boss" pays off Internal Revenue Service officials so that they do not go after the illegal operation.