Casinos are a hot spot for jackpot seekers wanting to try their luck with Blackjack, Roulette or slot machines. These establishments run a tight ship when it comes to apprehending those who cheat their staff or equipment, so it’s pretty difficult to swindle the house. However, according to a fraud investigation in Michigan, that’s exactly what a team of con artists armed with a specialized device did at the Kewadin Casino in Sault Ste. Marie.
Michigan Kewadin Casino Fraud Investigation Details
FEDERAL CASE SYNOPSIS
U.S. Attorney Patrick A. Miles, Jr. prosecuted the case against six Oklahoma defendants who were charged with conspiracy to defraud the United States. Specifically, the group collaborated to commit theft from a casino on Native American property, which is under federal jurisdiction.
This fraud investigation in Michigan revealed that the six developed a scheme that employed a light wand designed to manipulate slot machines into making payouts. In October 2013, each of the defendants pleaded guilty to one count of conspiracy to commit theft from a gaming establishment on Indian property.
THE SCHEME
As in many cases of fraud, the charges against the defendants arose from an anonymous tip. The individual identified three conspirators from the ring, alleging that they had engaged in a fraudulent plot to steal funds from the Kewadin Casino using a device that manipulated slot machines. Based upon this information, the fraud investigation in Michigan proceeded to utilize video surveillance in an attempt to capture the thieves in action.
- The tapes exposed the defendants perpetrating their fraudulent scheme during separate weekends in July 2011.
- Video footage detected one defendant using the light wand to manipulate the gaming equipment, resulting in fraudulent payouts.
- One or more conspirators from the team kept a lookout for their associate, and also transported the stolen cash from the slot machine to the cashier to convert the coins into paper bills.
After viewing the video surveillance, two defendants were observed by security personnel as they were operating their plot. Both were arrested on the spot by Sault Ste. Marie Tribal Police.
THE SENTENCES
Upon acceptance of their guilty pleas, U.S. District Judge Robert Holmes Bell sentenced the six defendants as follows:
- Joe Michael Koster, 63, sentenced to 36 months in prison, followed by three years of supervised probationary release.
- Cheryl Rose Steinisiek, 47, sentenced to 13 months in prison, followed by two years of supervised probationary release.
- Michael Leo Patterson, 46, sentenced to 18 months in prison, followed by two years of supervised probationary release.
- Koster, Steinisiek and Patterson were each ordered to pay $308,370.45 in restitution to the casino.
- Jeffrey Paul Neighbors, 36, sentenced to 9 months in prison, followed by three years of supervised probationary release and ordered to pay $67,000 in restitution.
- Vannessa Robb, 57, sentenced to one month in prison, followed by two years of supervised probationary release and ordered to pay $150,000 in restitution.
- Bruce Robb, 58, sentenced to six months in prison, followed by two years of supervised probationary release and ordered to pay $150,000 in restitution.
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Veriti Consulting LLC provides professional fraud investigation in Michigan and across the U.S. Veriti is also a licensed private investigation firm. Learn more about our forensic auditing and fraud investigation services by calling 855.232.4410 or contact us via email.
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