'Eight-liner' operation results in charges of money laundering

HOUSTON CHRONICLE

March 1, 2011, 7:04PM

http://www.chron.com/disp/story.mpl/metropolitan/7452067.html

An undercover sting led to the arrests of five people on charges of operating gambling operations in several locations in Harris, Brazoria and Fort Bend counties, authorities said Tuesday.

The sting, which netted more than $1.5 million, is the Houston Police Department vice unit's largest gambling and money laundering seizure, said Lt. C.A. Vazquez.

Arrested were a husband and wife, Terry Wayne Donalson, 39, and Nancy Donalson, 33; their father, Alton Donalson, 76; James Keith, 74; and Mario Flavio Correa, 40. They are charged with felony money laundering, Vazquez said.

A sixth suspect, Carlos Delgado, 39, remains at large, he said.

HPD vice officers began investigating the so-called "eight-liner" game rooms and the operators last April. They made the arrests Thursday after obtaining search warrants for three gambling locations.

Investigators seized more than $1.5 million, nearly $200,000 in bank assets, guns, jewelry, vehicles, boats, jet skis, motorcycles and heavy-duty tools. They also seized 10-acres of riverfront property in Brazoria County, several currency counters and more than 250 video gambling machines.

The Harris County district attorney's white collar unit assisted with the investigation.

In Texas, gaming machines are legal, but they become unlawful when they are used to pay out 10 times the amount of a bet or $5, whichever amount is less, Vazquez said.

Terry and Nancy Donalson operated game rooms in their Stafford home and their two business offices, authorities said. Alton Donalson oversaw gambling in his Pearland home, they said, and the ring had four other gambling locations.

Capt. Steve Smith said the vice unit is cracking down on game rooms after years of little enforcement. Legal wording and seizure issues in the statutes had slowed enforcement but now those issues have been resolved by the Legislature, he said.

"We'll be out there daily," Smith said.

All five suspects remained in the Harris County Jail on Tuesday, with bail set at $500,000 for each. Each faces up to 99 years in prison and up to a $10,000 fine if convicted.