Published September 19, 2006 12:55 am - Local businessman arrested and charged with gambling offenses.
Multi-county raid reveals crime ring
25 area businesses closed, 29 arrested
By LEE NOBLE
Authorities closed down dozens of bars and found about $1 million stashed in a wall in a local convicted felon’s home Monday. Dozens of others were also arrested in a multi-county raid. More than 20 arrests are still pending.
Authorities characterize John L. Neal, 68, as head of the biggest known organized crime operation in area history.
Indiana State Excise Police, Anderson police and members of the Madison County SWAT Team laid siege to Neal’s assets and arrested him in a coordinated effort across four counties Monday morning.
“Mr. Neal may be the most notorious organized crime figure in the history of Indiana,” said Madison County Prosecutor Rodney Cummings. “This man has enough money that he tends to corrupt local officials.”
The arrest and searches are the result of an 18-month investigation into Neal’s business practices, which span 20 years and have landed him in prison twice, according to Cummings and reports from excise police.
The searched and seized properties include Neal’s accountant’s office, two offices relating to a video gambling machine service, dozens of alcohol-related establishments in which Neal is said to have off-the-record partial ownership and millions of dollars of stashed cash.
Some 29 search or arrest warrants in Madison and Delaware counties were executed simultaneously beginning at 9 a.m. Monday. Also issued were 52 arrest warrants for other individuals wanted in connection with illegal gambling, according to a news release from the state’s Alcohol and Tobacco Commission.
By Monday afternoon, more than 28 people aside from Neal were booked into the Madison County jail in relation to this case, most facing charges of professional gambling and money laundering.
Many are part-owners or employees of the bars under scrutiny.
The Anderson Police Department’s lead investigator in the case, Detective Joel Sandefur, confirmed that officers were searching for records in some 23 bars across Madison, Delaware, Henry and Randolph counties.
Dave Hurst, chairman of the Indiana Alcohol and Tobacco Commission, was at Neal’s home, on a quiet country road between Yorktown and Daleville, as officers and agents scoured it for evidence.
He confirmed the prosecutor’s report that investigators found upwards of $1 million cash hidden in a secret wall in Neal’s home.
“The house is going to be taken apart to be examined pretty thoroughly,” said Cummings.
Heath said 60 officers from the state’s excise police, 20 from Anderson police along with Madison County SWAT Team members and a few FBI agents helped in the sting.
According to the probable cause affidavit for the search warrants, Anderson undercover police officers infiltrated the local bar scene with an undercover officer who eventually gained employment at one of the bars. They listened in on conversations and observed the illegal business and gambling practices all pointing back to Neal.