Fruitland bar owner pleads guilty for illegal gambling operation
Thomas Dale Overstreet, 67, of Fruitland Idaho, pled guilty in federal court last Friday to income tax evasion, operating an illegal gambling business, and conspiracy to commit money laundering.
According to court documents, between 2003 and 2011, Overstreet owned and operated Club 7, a bar located in Fruitland, where he operated an illegal gambling business that involved the operation of video gambling machines.
Overstreet admitted that at his direction, cash from the illegal gambling machines was used to cash checks for members of the public in order to prevent cash deposits into Club 7's bank account and avoid a transaction reporting requirement under Federal law. Members of the public could avail themselves of the check cashing service, for no fee, by visiting Club 7 and signing over checks received from third parties. After signing over the checks to Club 7, members of the public were paid the face value of the check in cash.
Overstreet is scheduled to be sentenced on November 14, 2012.