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Text of the indictment

Friday, March 22, 2002


o EDITOR'S NOTE: Following are excerpts from the 29-page federal indictment against Eddie L. Martin and his wife, Hilda. o

UNITED STATES

DISTRICT COURT

EASTERN DISTRICT

OF MICHIGAN

SOUTHERN DISTRICT

UNITED STATES OF AMERICA, Plaintiff, vs. D-1 EDDIE L. MARTIN, D-2 HILDA MARTIN, D-3 CLARENCE MALVO, Defendants.

THE UNITED STATES ATTORNEY CHARGES

COUNT ONE

(18 U.S.C. 371 - Conspiracy to Engage in an Illegal Gambling Business)

1. That from in or about 1988, and continuing up to and including on or about October 13, 1999, said dates being approximate, in the Eastern District of Michigan, EDDIE L. MARTIN, HILDA MARTIN and CLARENCE MALVO, Defendants herein, combine, conspire, confederate and agree with each other, and with others known and unknown to the Grand Jury, to conduct an illegal gambling business as defined in Section 1955 (b) of Title 18, United States Code; all in violation of Section 371 of Title 18, United States Code.

Roles of Defendants

8. From in or about 1988, through in or about 1999, Defendant, EDDIE L. MARTIN, financed, managed and supervised various co-conspirators, including Defendant, CLARENCE MALVO, to serve as writers to receive illegal numbers wagers at Ford Motor Company's (FMC) Rouge River plant, and at other locations throughout the metropolitan Detroit area. Defendant, EDDIE L. MARTIN, served as the house in his illegal gambling business. Defendant, HILDA MARTIN, assisted Defendant, EDDIE L. MARTIN, in the facilitation and operation of the illegal gambling business of Defendant, EDDIE L. MARTIN, and an unindicted co-conspirator, Carlton Martin.

9. From in or about May 1996, through in or about April 1999, Defendant, EDDIE L. MARTIN, assisted his son, Carlton Martin, an unindicted co-conspirator, in the establishment, continued maintenance and financial support of an illegal gambling business that was operated, managed and supervised primarily by unindicted co-conspirator, Carlton Martin. EDDIE L. MARTIN, assisted Carlton Martin in the financing and establishment of Carlton Martin's illegal gambling business, and provided Carlton Martin with financial support of at least $300,000 to operate Carlton Martin's illegal gambling business.

10. Defendant, EDDIE L. MARTIN, used the legal Michigan and Ohio state lottery numbers to identify "hits" or winning numbers in his illegal gambling business.

12. Defendant, HILDA MARTIN, the wife of Defendant, EDDIE L. MARTIN, would convey the daily results of the three- and four-digit legal Michigan and Ohio state lottery numbers to Defendant, EDDIE L. MARTIN, and others, including unindicted co-conspirators involved in the illegal gambling business of Carlton Martin, in order to facilitate the illegal gambling business, usually from her residence at 17430 Fairway in Detroit, Michigan.

13. Defendant, EDDIE L. MARTIN, paid the writers, including Defendant, CLARENCE MALVO, a commission of 25 percent to 30 percent of gross wagers written. The remainder of the money was forwarded to Defendant, EDDIE L. MARTIN, in the form of third-party checks and cash collected by the writers from the bettors.

14. Most of the bettors in Defendant EDDIE L. MARTIN'S illegal gambling business wagered on credit during the week and settled up with the writers once a week. Some of the bettors would settle up with the writers by having the writers cash the payroll checks, personal checks, and other negotiated instruments, and deducting the money owned for wagering activity.

15. Defendant, EDDIE L. MARTIN, provided various unindicted co-conspirators with fax machines and gave the unindicted co-conspirators instructions to fax the daily wagering action that they wrote to the resident of Defendant, Eddie L. Martin, located at 17430 Fairway in Detroit, Michigan, or the residence of unindicted co-conspirator, Carlton Martin, located at 19530 Stratford in Detroit, Michigan. At times, unindicted co-conspirators used alphanumeric identifiers or nicknames to indicate who the faxes were from.

COUNT TWO

(18 U.S.C. 1955 - Illegal Gambling Business)

18. That in or about 1988 through in or about October 1999, in the Eastern District of Michigan, Defendant, EDDIE L. MARTIN, did knowingly and willfully conduct, finance, manage, supervise, direct and own, and aid and abet others in conducting, financing, managing, supervising, directing and owning an illegal gambling business; said gambling business being in violation of Sections 750.301, 750.302, 750.157A, 750.167, 750.92 and 767.39 of the Michigan Compiled Laws, and said gambling business involved five or more people who conducted, financed, managed, supervised, directed and owned the business, which remained in continuous operation for a period in excess of 30 days and having gross revenues of $2,000 or more on one or more days, in violation of Title 18, United States Code, Section 1955.

COUNT THREE

(18 U.S.C. 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), and 18 U.S.C. 1956(h) - Conspiracy to Launder Monetary Instruments)

19. That from in or about 1988 and continuing up to and including on or about October 1999, said dates being approximate, in the Eastern District of Michigan, EDDIE L. MARTIN, knowingly, willfully and unlawfully combined, conspired, confederated and agreed with others known and unknown to the Grand Jury, to commit an offense against the United States, to wit: to violate Title 18, United States Code, Section 1956(a)(1)(A)(i) and Title 18, United States Code, Section 1956(a)(1)(B)(i), that is, knowing that the property involved represented the proceeds of some form of unlawful activity, as defined in Title 18, United States Code, Section 1956(c)(1), conducted and caused to be conducted, financial transactions which involved the proceeds of a specified unlawful activity, to wit, an activity constituting an offense under Section 1955 of Title 18, United States Code, with intent to promote the carrying on of said unlawful activity and/or to conceal and disguise the nature, location, source, ownership, and control of the proceeds of said unlawful activity, all in violation of title 18, United States Code, Sections 1956(a)(1)(A)(i),(B)(i), and (h).

MANNER AND MEANS OF THE CONSPIRACY

20. It was part of the manner and means of this unlawful conspiracy that Defendant, EDDIE L. MARTIN, and others known and unknown to the Grand Jury, ... did the following:

a) Deposited approximately $200,000 in third-party checks into the bank accounts of Defendant EDDIE L. MARTIN, at Comerica Bank during the years 1995 through 1999.

b) From in or about 1996, through in or about 1999, Defendant, EDDIE L. MARTIN, converted the third-party checks deposited to the accounts of Defendant, EDDIE L. MARTIN, to cash, for the purpose of facilitating the illegal gambling businesses of Defendant, EDDIE L. MARTIN, and unindicted co-conspirator, Carlton Martin, that totaled approximately $151,000.

c) On or about August 19, 1998, Defendant, EDDIE L. MARTIN purchased a 1994 Mercedes Benz, Vehicle Identification Number WDBGA51E7RA167464, from European Auto Service Ltd., which was used to facilitate his illegal gambling business and the illegal gambling business of unindicted co-conspirator,

Carlton Martin, by, among other things, picking up and delivering money and gambling records from various unindicted co-conspirators.

d) Utilized a home equity line of credit taken out against Defendant, EDDIE L. MARTIN'S residence at 17430 Fairway in Detroit, Michigan, to facilitate his illegal gambling business and the illegal gambling business of unindicted co-conspirator, Carlton Martin. Defendant, EDDIE L. MARTIN, made draws on this line of credit when funds were needed for his illegal gambling business and/or that of the illegal gambling business of unindicted co-conspirator, Carlton Martin, then later used cash and third-party checks to make payments on the outstanding equity line of credit.

e) Loaned substantial amounts of monies, which were generated from the proceeds of the illegal lottery operation, to certain basketball players and their families by giving them cash and making expenditures for them during the years 1988 through 1999. The monies loaned to these certain basketball players and their families were concealed and kept secret.

OVERT ACTS

21. During the course of and in furtherance of the unlawful conspiracy, Defendant, EDDIE L. MARTIN, committed overt acts, including but not limited to the following:

a) On or about June 30, 1995, Defendant, EDDIE L. MARTIN, caused to be negotiated, at Comerica Bank, $20,151 in third-party checks.

b) On or about August 16, 1996, Defendant, EDDIE L. MARTIN, caused to be deposited to a personal bank account of Defendant, EDDIE L. MARTIN, in Account Number 0030319982, at Comerica Bank, third-party checks totaling approximately $9,070.

c) On or about August 12, 1997, Defendant, EDDIE L. MARTIN, caused to be deposited to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 0030319982, at Comerica Bank, third-party checks totaling approximately $3,487.

d) On or about July 31, 1998, Defendant, EDDIE L. MARTIN, caused to be deposited to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 0030319982, at Comerica Bank, third-party checks totaling approximately $5,322.

e) On or about August 4, 1998, Defendant, EDDIE L. MARTIN, wrote Check Number 115 in the amount of $9,000 to unindicted co-conspirator Carlton Martin, drawn on the Comerica Equity Line of Credit Account Number 4610395104026685.

f) On or about August 4, 1998, Defendant, EDDIE L. MARTIN, wrote Check Number 116 in the amount of $9,000, payable to Defendant, EDDIE L. MARTIN, drawn on the Comerica Equity Line of Credit Account Number 4610395104026685.

g) On or about August 7, 1998, Defendant, EDDIE L. MARTIN, caused to be deposited to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 0030319982, at Comerica Bank, third-party checks totaling approximately $3,084.

h) On or about August 17, 1998, Defendant, EDDIE L. MARTIN, caused to be deposited to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 10300227435, at Comerica Bank, third-party checks totaling approximately $5,227.

I) On or about August 20, 1998, Defendant, EDDIE L. MARTIN, wrote Check Number 508 in the amount of $6,000, payable to European Auto Service, for the purchase of a 1994 Mercedes Benz, Vehicle Identification Number WDBGA51E7RA167464, to be drawn from the personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 1030027435, at Comerica Bank.

J) On or about August 21, 1998, Defendant, EDDIE L. MARTIN, caused to be deposited to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 1030027435, at Comerica Bank, third-party checks totaling approximately $10,431.

k) On or about August 2, 1998, Defendant, EDDIE L. MARTIN, wrote Check Number 509 in the amount of $11,500, payable to European Auto Service, for the purchase of a 1994 Mercedes Benz, Vehicle Identification Number WDBGA51E7RA167464, to be drawn from the personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 1030027435, at Comerica Bank.

l) On or about September 8, 1998, Defendant, EDDIE L. MARTIN, caused to be deposited to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 0030319982, at Comerica Bank, cash in the amount of $3,600 and third-party checks totaling approximately $1,019.

m) On or about September 8, 1998, Defendant, EDDIE L. MARTIN, made a payment of $15,341.86 to Comerica Equity Line of Credit Account Number 4610395104026685. The payment was comprised of cash in the amount of $7,000.50 and a check, Check Number 5259, in the amount of $8,346.36, drawn on Account Number 0030319982 at Comerica Bank.

n) On or about March 11, 1999, Defendant, EDDIE L. MARTIN, wrote Check Number 5310 from a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 0030319982, at Comerica Bank, made payable to "Cash" in the amount of $6,000.

o) On or about March 12, 1999, Defendant, EDDIE L. MARTIN, caused to be deposited to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 0030319982, at Comerica Bank, third-party checks totaling approximately $3,792.

p) On or about March 16, 1999, Defendant, EDDIE L. MARTIN, caused to be deposited to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 1030027435, at Comerica Bank, third-party checks totaling approximately $3,807.

s) On or about April 15, 1999, Defendant, EDDIE L. MARTIN, wrote Check Number 119 in the amount of $10,000 to unindicted co-conspirator Carlton Martin, drawn on the Comerica Equity Line of credit Account Number 4610395104026685.

u) From in or about 1988, through in or about 1993, Defendant, EDDIE L. MARTIN, loaned Mayce Edward Christopher Webber III and family members of Mayce Edward Christopher Webber III, approximately $280,000.

v) From in or about September 1994, through in or about September 1998, Defendant, EDDIE L. MARTIN, loaned Robert DeShaun Traylor and family members of Robert DeShaun Traylor approximately $160,000.

w) From in or about September 1995, through in or about January 1998, Defendant, EDDIE L. MARTIN, loaned Maurice DeShawn Taylor and family members of Maurice DeShawn Taylor, approximately $105,000.

x) From in or about October 1995 through in or about April 1999, Defendant, EDDIE L. MARTIN, loaned Louis Bullock Jr. and family members of Louis Bullock Jr. approximately $71,000.

y) For the years 1994 through 1998, Defendant, EDDIE L. MARTIN, filed joint Federal income tax returns with his wife, Defendant, HILDA MARTIN, and reported the following income and expenses:

1994

Disability Benefits: 1,977

Interest: 7

Pension: 17,812

Lottery Winnings: 2,604

Other income:

Total Income: 22,400

Adjusted Gross Income: 22,400

Itemized Deductions: 19,058

Exemptions (3): 7,350

Taxable Income: 0

Uncollected FICA: 6

Earned Income Credit: 213

Refund (Tax Due): 207

Itemized Gambling: Losses: (2,604)

1995

Disability Benefits: 1,975

Interest: 3

Pension: 17,242

Lottery Winnings: 5,000

Other income:

Total Income: 24,220

Adjusted Gross Income: 24,220

Itemized Deductions: 17,899

Exemptions (3): 7,500

Taxable Income: 0

Uncollected FICA: 5

Earned Income Credit: 27

Refund (Tax Due): 22

Itemized Gambling: Losses: (5,000)

1996

Disability Benefits: 1,905

Interest: 11

Pension: 10,973

Lottery Winnings: 13,125

Other income:

Total Income: 26,014

Adjusted Gross Income: 26,104

Itemized Deductions: 18,370

Exemptions (3): 7,650

Taxable Income: 0

Uncollected FICA: 0

Earned Income Credit:

Refund (Tax Due): 0

Itemized Gambling: Losses: (3,125)

1997

Disability Benefits: 1,981

Interest: 6

Pension: 10,496

Lottery Winnings:

Other income: 7,604

Total Income: 20,087

Adjusted Gross Income: 20,087

Itemized Deductions: 12,755

Exemptions (3): 7,950

Taxable Income: 0

Uncollected FICA: 0

Earned Income Credit:

Refund (Tax Due): 0

Itemized Gambling: Losses: (1,600)

1998

Disability Income: 1,983

Interest:

Pension: 10,496

Lottery Winnings: 10,312

Other income:

Total Income: 22,791

Adjusted Gross Income: 22,791

Itemized Deductions: 17,887

Exemptions (3): 8,100

Taxable Income: 0

Uncollected FICA:

Earned Income Credit:

Refund (Tax Due): 0

Itemized Gambling: Losses: (7,500)

COUNT FOUR

(18 U.S.C. 1956(a)(1)(A)(I) - Laundering of Monetary Instruments)

24. On or about August 17, 1998, Defendant, EDDIE L. MARTIN, knowing that the proceeds of the property involved represented the proceeds of some form of unlawful activity, and knowing that the transaction was made with the intent to promote the carrying on of a specified unlawful activity, conducted and caused to be conducted financial transactions involving the use of a financial institution engaged in interstate commerce, which financial transactions in fact involved the proceeds of specified unlawful activity, that is, an activity constituting an offense under Section 1955 of Title 18, United States Code, with intent to promote the carrying on of said specified unlawful activity, did deposit or cause to be deposited third-party checks totaling approximately $5,227 to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 1030027435 at Comerica Bank; all in violation of Section 1956(a)(1)(A)(i) of Title 18, United States Code.

COUNT FIVE

(18 U.S.C. 1956(a)(1)(A)(i) - Laundering of Monetary Instruments)

27. On or about August 21, 1998, defendant, EDDIE L. MARTIN, knowing that the proceeds of the property involved represented the proceeds of some form of unlawful activity, and knowing the transaction was made with the intent to promote the carrying on of a specified unlawful activity, conducted and caused to be conducted financial transactions involving the use of a financial institution engaged in interstate commerce, which financial transactions in fact involved the proceeds of specified unlawful activity, that is, an activity constituting an offense under Section 1955 of Title 18, United States Code, with intent to promote the carrying on of said specified unlawful activity, did deposit or cause to be deposited third-party checks totaling approximately $10,431 to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 1030027435, at Comerica Bank; all in violation of Section 1956(a)(1)(A)(i) of Title 18, United States Code.

COUNT SIX

(18 U.S.C. 1957 - Engaging in Monetary Transactions in Property Derived From Specified Unlawful Activity)

30. On or about August 21, 1998, Defendant, EDDIE L. MARTIN, did knowingly engage and attempt to engage in a monetary transaction affecting interstate commerce, in criminally derived property of a value grater than $10,000, which was derived from a specified unlawful activity, that is, an activity constituting an offense under Section 1955 of Title 18, United States Code, did deposit or cause to be deposited third-party checks totaling $10,431 to a personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 1030027435, at Comerica Bank; all in violation of Title 18, United States Code, Section 1957.

COUNT SEVEN

(18 U.S.C. 1956(a)(1)(A)(i) - Laundering of Monetary Instruments)

33. On or about August 21, 1998, Defendant, EDDIE L. MARTIN, knowing that the proceeds of the property involved represented the proceeds of some form of unlawful activity, and knowing that the transactions were made with the intent to promote the carrying on of a specified unlawful activity, conducted and caused to be conducted financial transactions involving the use of a financial institution engaged in interstate commerce, which financial transactions in fact involved the proceeds of specified unlawful activity, that is, an activity constituting an offense under Section 1955 of Title 18, United States Code, with intent to promote the carrying on of said specified unlawful activity, wrote Check Number 509, payable to European Auto Service for the purchase of a 1994 Mercedes Benz, Vehicle Identification Number WDBGA51E7RA167464, from the personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 1030027435, at Comerica Bank, in the amount of $11,500; all in violation of Section 1956(a)(1)(A)(i) of Title 18, United States Code.

COUNT EIGHT

(18 U.S.C. 1957 - Engaging in Monetary Transactions in Property Derived From Specified Unlawful Activity)

36. On or about August 21, 1998, Defendant EDDIE L. MARTIN, did knowingly engage and attempt to engage in a monetary transaction affecting interstate commerce, in criminally derived property of a value greater than $10,000, which was derived from a specified unlawful activity, that is, an activity constituting an offense under Section 1955 of Title 18, United States Code, wrote Check Number 509, payable to European Auto Service for the purchase of a 1994 Mercedes Benz, Vehicle Identification Number WDBGA51E7RA167464, from the personal bank account of Defendant, EDDIE L. MARTIN, under Account Number 1030027435, at Comerica Bank, in the amount of $11,500; all in violation of Title 18, United States Code, Section 1957.

THIS IS A TRUE BILL.

Janet Bailey

GRAND JURY FOREPERSON

JEFFREY G. COLLINS

United States Attorney

RICHARD G. CONVERTINO

Assistant United States Attorney

211 W. Fort St., Ste. 2001

Detroit, MI 48226

(313) 226-9629

Dated: March 20, 2002

© 2002 Ann Arbor News. Used with permission
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