North Carolina Man Who Won $1.5M at Casino Pleads Guilty to Federal Charges

Posted on: September 12, 2024, 09:33h. 

Last updated on: September 12, 2024, 10:12h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

A North Carolina man who won nearly $1.5 million playing slot machines at a tribal casino pleaded guilty to federal charges for embezzling hundreds of thousands of dollars from his place of employment.

North Carolina casino theft crime
A North Carolina man pleaded guilty to stealing state money to gamble. Federal prosecutors say Russel Hester embezzled nearly $375K. (Image: Casino.org)

Russel Edward Hester, 72, of Rutherfordton, this week entered a guilty plea on charges of wire fraud and money laundering. He faces up to 30 years in prison when he’s sentenced later this year.

Hester admitted to using a state debit card to fund his gambling addiction. Hester possessed the government spending card because he was the manager of an Alcohol Beverage Control (ABC) location in his hometown.

Federal prosecutors say Hester regularly visited the Catawba Two Kings Casino in Kings Mountain, a nearly hour-long drive from Rutherfordton, and used government money to gamble.?

Government Gambling Card?

US Attorney Dena King of the Department of Justice’s Western District of North Carolina said Hester withdrew at least $374,807.10 at the tribal casino’s ATM through 192 transactions. The fraudulent transfers were made between December 2021 through October 2023.

Hester had control of the local ABC’s financial accounts and records since he was the manager of the liquor store for nearly 10 years. He admitted to using the government cash to fund his addiction to slot machines.

As store manager, Hester had access to, and control over, the Board’s financial accounts and records, wrote checks to pay bills, and was responsible for creating the budget each year. Hester was also responsible for providing all information needed for the annual independent third-party audit of the ABC store,” King wrote.

Casino records show that Hester won nearly $1.5 million playing the one-armed bandits. But instead of repaying the money he stole, Hester deposited the $1,469,368 into his personal accounts.

On one instance — July 4, 2023 — Hester withdrew $3,000 in cash on the ABC debit card and deposited the money into a slot. He later won a jackpot worth $18,350 and told casino staff he’d like to receive his winnings in the form of a check. He deposited the check into his personal account.

King said Hester falsified ABC’s financial records and provided fake bank account statements during the Alcohol Beverage Control’s annual audits in an unsuccessful attempt to conceal his actions.

The ABC store Hester managed and stole from is located at 441 S. Main St. ABC stores in North Carolina are to use their net profits to support local law enforcement and K-12 public education. The state has retained control of the selling of hard liquor bottles since 1937.

Casino Construction

Hester’s illegal activity occurred at the Catawba Nation’s temporary casino. The facility has about 1,000 slots and electronic gaming positions. The provisional gaming space added a dozen live dealer table games in June.

After years of delays, the tribe recently broke ground on its $700 million permanent casino resort located off Interstate 85 at Exit 5. The forthcoming destination will include 4,300 slots, 100 live dealer table games, a sportsbook, 11 restaurants and bars, and a 400-room hotel.

The resort is slated to open in early 2026.