Published: 05:11 AM, Sun Jan 23, 2011

http://www.fayobserver.com/articles/2011/01/23/1065118?sac=Home

Three people from Robeson County have been charged in a money laundering conspiracy tied to illegal video gambling, according to federal court documents.

Wallace Dixon Cox, Lisa Cox and April Cox Walters were charged Thursday in a criminal information filed in U.S. District Court.

According to that document, the defendants conspired to hide funds from illegal gambling between 1999 and at least 2006.

The trio used profits from illegal gambling to buy additional video poker machines and disguised the profits by commingling the money with profits generated by legal business operations, according to the documents.

All three defendants have Lumberton addresses, but their relationships to one another are not explained in court records.

Video poker machines

Authorities say they allegedly operated illegal video poker machines in multiple locations in eastern North Carolina, and each was actively involved in the business.

Wallace Cox and Lisa Cox arranged for the purchase of the machines at a number of retail outlets and made agreements with businesses to place the machines there in exchange for a portion of the proceeds, court records say.

The three defendants allegedly instructed employees to make illegal payouts for video poker winnings, personally made such payouts, and coordinated the collection of money and maintenance of the machines, court documents say.

According to an investigation, Wallace Cox and Lisa Cox tried to buy an airplane with the illegal profits in 2006 and asked the seller not to file legally required currency reports in regard to a $50,000 cash payment.

Similar attempts to conceal purchases using illegal profits were made in June 2005 and March, April and November of 2006.

In those instances, Wallace Cox bought property to expand his illegal enterprise, according to investigators.