Stillwater bookie agrees to plea deal on money laundering

By DAN BROWNING, Star Tribune

Last update: April 18, 2008 - 12:43 AM

A 44-year-old Stillwater man pleaded guilty in federal court Thursday to a money laundering conspiracy that concealed the proceeds of a sports booking operation he ran for six years.

Kevin William Ritzer agreed to help the government investigate and prosecute other members of the alleged conspiracy.

Ritzer told U.S. District Judge David S. Doty that from October 2000 through September 2006, he accepted and placed bets "by wire."

He admitted to laundering about $153,500 in gambling proceeds by taking the money to an unnamed co-conspirator, who then issued false payroll checks back to Ritzer under the name of a business to make it look like legitimate earnings. In fact, Ritzer did no work for the business, which also was not named.

Ritzer said that the person also sent him W-2 tax forms to cover the fraudulent payments and that he paid taxes on the amounts stated.

Ritzer agreed to forfeit $95,890.39 that the government seized from his Wells Fargo Bank account last March.

The conspiracy charge carries a maximum penalty of 20 years. But Ritzer's plea bargain anticipates a prison term of 10 to 16 months and two to three years of supervised release. Assistant U.S. Attorney Nicole Engisch said the government may ask for a reduction, though, if Ritzer provides "substantial assistance" in its investigation. Doty will ultimately determine the sentence.

The case was investigated by the Internal Revenue Service.

Dan Browning • 612-673-4493

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