Authorities bust $3M Internet gambling operation, indict 3

“The amount of money that was funneled through this operation was definitely astounding,” Nicole Marchand, DeKalb County chief assistant district attorney, said after a raid at the operation's Doraville location.

Arrest warrants were issued Tuesday for Kokott and two managers – James A. Clemmons, 47, and his wife, Marilyn Clemmons, 49. All three live in Columbus.

“These perpetrators lined their pockets with the hard-earned dollars of everyday citizens under the false pretense of a legitimate lottery and sweepstakes,” DeKalb County District Attorney Robert James told The Atlanta Journal-Constitution in an email Tuesday.

According to a 38-page indictment, the seven cafes -- one each in Doraville, Douglasville, LaGrange, Albany and Conyers, and two in Columbus -- purported to be part of a sweepstakes operation attached to the long-distance calling cards they sold.

Patrons were told they had to play the sweepstakes in order to buy the calling cards, authorities said. Authorities allege that the customers would buy Tel Connect Phone Cards to use in gambling machines, loading up certain amounts of money on the cards to wager and accruing winnings to redeem for cash – which is illegal in Georgia.

To cover up the millions of dollars the seven businesses took in over the last year, the indictment alleges that Marilyn Clemmons conducted several “take backs,” splitting up large payments into increments of less than the $10,000 the federal government requires financial institutions to report whenever there’s a transaction of that size.

The DeKalb D.A.’s office worked with the GBI and other local agencies during a six-month investigation to pull together enough evidences for Tuesday’s indictments, GBI spokesman John Bankhead said.

“Gov. Deal directed the GBI to start investigations into Internet cafes to try to get a handle on it before it got out of control,” Bankhead said. “As part of the investigations, they would send an undercover agent into the [seven] locations … and play the games.”

Eight locations were searched Tuesday, including the seven Big Dawgs and Kokott’s home, authorities said. Police and GBI agents also questioned employees and patrons at each business location and confiscated the computers there. Cash seizures totaled almost $21,000, the GBI said.

Authorities noted that the main database is located somewhere outside of Georgia.

It’s unclear whether any employees other than James and Marilyn Clemmons will be charged.

“Right now we’re focusing on the people who are funding and operating this illegal operation,” Marchand said.

This isn’t Kokott’s first run-in with law enforcement with this enterprise, Marchand said.

“This individual was prosecuted in Florida for doing the exact same thing,” Marchand said. The man paid a Florida county $10,000 to settle the allegation, and then moved the business to Georgia, she said.

Marchand said state and local officials here won’t let Kokott or his cohorts off with simply paying the equivalent of a fine.

“We’re not going to stand for it here in Georgia,” she said. “There will be no pay-out to avoid prosecution.”

Authorities say businesses like this directly attack the poor.

“They’re always taking advantage of the folks who have the least amount of money and should be using it to take care of their families.” Marchand said.

Kokott was arrested in the Conyers business around 4:30 p.m. Tuesday, GBI officials said. He will be questioned, then booked into the DeKalb County jail, they said.

Neither James nor Marilyn Clemmons were in custody as of Wednesday afternoon, the GBI said.

Anyone with information on their whereabouts should contact the GBI at 770-830-1375 or the bureau's tip line at 1-800-597-8477.