RALEIGH – In a shocking turn of events, a Southern Pines convenience store owner, Mukesh Patel, has had a staggering $765,850.27 in video sweepstakes gaming proceeds seized from his business, Jay’s Food Mart 2. The move comes after a lengthy investigation led by the United States Attorney’s office in the Eastern District of North Carolina.
According to court documents, Patel and his company, Shree Zapesvari, Inc., were operating several illegal electronic gaming machines and games of chance at both Jay’s Food Mart 1 and 2. The machines, which contained gaming software provided by a third-party, allowed patrons to win payoffs on site.
As alleged in the Complaint filed on December 23, 2016, the cash seized from the Patels’ convenience stores was the proceeds of illegal gambling in violation of state and federal law. Under the terms of a Settlement Agreement filed on July 13, 2018, $100,000 of the total of $865,850.27 seized from the Patels will be returned to them, with the remainder forfeited.
“A segment of the gaming industry continues to foist illegal games of chance on the people of North Carolina,” says United States Attorney Robert J. Higdon, Jr. “particularly on those least able to afford this addictive and destructive habit – this in spite of clear directives from both the North Carolina General Assembly and Supreme Court of North Carolina barring such games. This case represents one way in which we will seek to limit the reach of this lucrative yet pernicious industry.”
Homeland Security Investigations Resident Agent in Charge Timothy P. Stone says that “as these segments of the gaming industry continue to pedal games of chance onto the public of North Carolina, an environment ripe for illegal behavior is created, one that preys on the livelihood of many while costing others their lives.” Stone says that “the success of the investigation would not have been possible without the hard work and dedication of North Carolina Alcohol Law Enforcement, Moore County Sheriff’s Office, the Internal Revenue Service Criminal Investigations Division, and the Office of the United States Attorney, all critical in helping bring the individuals and businesses of this industry to justice.”
In related news, the Patel’s businesses will be returning $100,000 to them, leaving the remainder of $765,850.27 forfeited. Assistant United States Attorney Steve West represented the government in this matter.
Key Facts
- State: North Carolina
- Category: White Collar Crime|Organized Crime
- Source: DOJ Press Release â†â€â€
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