California-based gaming company operated as illegal gambling business, prosecutors say
Three people who California prosecutors say operated an illegal gambling business online have pleaded guilty in the case.
The U.S. Attorney's Office for the Eastern District of California and Arizona announced a plea deal Tuesday against SweepsCoach business operators James Mecham, Kurt Stocks and Heidi Edwards.
As detailed by prosecutors, the El Dorado Hills-based SweepsCoach business helped set up gaming terminals at internet cafes across Arizona and California. The games played like video slot machines, with players buying credits to play for the chance of possibly winning more credits. The credits could then be exchanged for money at the cafes.
Investigators conducted undercover surveillance at the cafes while they were in operation, confirming that SweepsCoach games were being played.
In total, investigators found that Mecham, Stocks and Edwards had accumulated $14 million from their illegal gambling games from 2012-2017.
Tuesday's plea deal comes after a joint investigation by the IRS, FBI, California Franchise Tax Board, and California Department of Justice Bureau of Gambling Control along with the U.S. Attorney's Office.
Mecham, Stocks and Edwards aren't scheduled to be sentenced in the case until October. They all face a maximum sentence of five years in prison and a $250,000 fine each.
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