Indictment: Drug Traffickers Laundered Profits
Through Slot Machines at KCK Casino
KANSAS CITY, KAN. – Five people have been indicted on federal charges of drug trafficking and laundering the profits through slot machines at a casino in Kansas City, Kan., U.S. Attorney Barry Grissom said today.
The indictment alleges traffickers laundered more than $200,000 in cash from the sale of marijuana by depositing the money in slot machines and then cashing out without playing.
Charged in a 12-count indictment are:
Gregory Rapp, 30, Gardner, Kan., one count of conspiracy to distribute marijuana, one count of conspiracy to commit money laundering and 10 counts of money laundering.
Christopher Anderson, 30, Olathe, Kan., one count of conspiracy to commit money laundering and five counts of money laundering.
Jeffrey Selectman, 29, Shawnee, Kan., one count of conspiracy to distribute marijuana.
Denise Hurla, 50, Gardner, Kan., one count of conspiracy to distribute marijuana.
Kenneth Stewart, 33, Olathe, Kan., one count of conspiracy to commit money laundering and one count of money laundering.
Documents filed in the case allege the investigation began when the Kansas Racing and Gaming Commission contacted the Kansas Bureau of Investigation about suspicious activity at the Hollywood Casino at 777 Hollywood Casino Boulevard in Kansas City, Kan. Rapp and others were observed depositing large sums of money in small denominations into slot machines throughout the casino. They did not play the machines or wager any money. They cashed out without playing and received a ticket voucher for the amount deposited in the slot machines. Then they cashed the tickets throughout the casino at automated teller machines. They received the value of the tickets in larger denominations.
In November 2013, investigators determined Rapp had not claimed any Kansas earnings or wages since the third quarter of 2011, when he said he was employed at a Jiffy Lube in Overland Park, Kan. Beginning in January 2014 investigators working undercover bought more than two pounds of marijuana from the traffickers. In February 2014 one of the traffickers showed an undercover officer how to launder drug proceeds though slot machines using $18,000 in KBI evidence buy funds.
If convicted, the defendants face a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The Johnson County Sheriff’s Officve, the Kansas Bureau of Investigation and the Kansas Racing and Gaming Commission investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Emanuel Godinez-Perez, 31, Jose Menera-Alvarez, 22, and Gilberto Cano-Bahena are charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. In addition Godinez-Perez is charged with two counts of distributing methamphetamine. The crimes are alleged to have occurred in June and July 2014 in Wyandotte County, Kan.
If convicted, the defendants face a penalty of not less than 10 years and a fine up to $10 million on the conspiracy count, and a penalty of not less than five years and not more than 40 years and a fine up to $5 million on each of the other counts. Homeland Security Investigations investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Sergio Ivan Rivera-Zevada, 34, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 29, 2014, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The KBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.