Former South Pittsburg Mayor Mike Killian Charged By Federal Authorities For Illegal Gambling; Is Brother Of U.S. Attorney Bill Killian; He Agrees To Plead Guilty

Wednesday, February 27, 2013
Mayor Mike Killian
Mayor Mike Killian

Former South Pittsburg Mayor Mike Killian has been charged by federal authorities for illegal gambling. He has agreed to plead guilty to the charge.

He is the brother of U.S. Attorney for the Eastern District of Tennessee Bill Killian. The indictments and complaints are usually signed by Bill Killian, but this one was signed by Jack Smith, chief of the Public Integrity Department of the U.S. Department of Justice. Trial attorneys are listed as Mark Angehr and Barak Cohen, who are not associated with the Bill Killian office.

Mike Killian faces up to five years in federal prison and a fine up to $250,000 or twice the amount of the pecuniary gain.

The complaint says from 2004 to January 2013, Mike Killian managed an illegal gambling operation with revenues of as much as $2,000 per day. Some of the gambling started as early as 1988.

The operation included video gambling, sports betting and an "outlaw" lottery - all of which violate state law, it was stated.

The complaint says the "outlaw" lottery involved placing illegal bets on legal state lotteries.

A raid was conducted on the Killian operation on Jan. 15.

Authorities said Killian ran the sports betting operation through an individual identified only as Person A."

The complaint says two video gambling machines containing $2,786 were found at the Lotto Mart, 519 E. 12th St., South Pittsburg, and $3,000 was found in a safe.

It says $11,609 in cash was seized from Mike Killian Wholesale Fireworks, 1505 S. Cedar Ave., South Pittsburg. It says $21,080 was seized from a safe. Two laptop computers and two desktop computers were confiscated.   

As a part of the plea deal, Killian agreed to the forfeiture of all the money and property.

In the plea agreement, Killian said he knew that the gambling operations were illegal.

From about 2007 to January 2013, the gambling machines at the Lotto Mart were located in a separate room with a door marked "Private". Income was between a few hundred to several thousand dollars a week.

The agreement says the illegal betting operation started in 2002 with Person A running it and dividing the proceeds evenly with Killian. In case Person A did not have enough cash to pay off winning bettors, Killian supplied the money. Person A either personally paid off the winners or left envelopes filled with cash at the Lotto Mart.

From 2002 until the recession in 2008, the sports betting operation yielded about $45,000 per year that was split between Killian and Person A.

In October 2012, Killian set up an account with OutlawLine.com - a sports betting site owned out of Costa Rica - and Person A received sports bet through the account until January.

The outlaw lottery began in 1988 and yielded $50 to $60 per day. It involved bets placed on lotteries in Tennessee, Georgia and illinois.

Mike Killian was mayor of South Pittsburg until 2004 until 2012.

He considered running for state Senate in 2007 when the seat was vacated by Ward Cruchfield, but decided against it.

Killian is represented by Chattanooga attorneys Lee Davis and Bryan Hoss.


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: AIRKS, JESSICA  711 WOODVALE AVE CHATTANOOGA, 37411  Age at Arrest: 28 years old Arresting Agency: Hamilton County Booked for Previous Charges or Other Reason(s) --- ANDERSON, SHEA AMBER  4103 DAYTON BLVD APTC37 CHATTANOOGA, 37415  Age at Arrest: 24 years old Arresting Agency: Chattanooga ... (click for more)

Chattanooga Man Arrested For Aggravated Robbery On 5th Ave.

Toriq Quinn Johnson, Jr. was arrested for aggravated robbery on Thursday.. Police were notified of a robbery that occurred on 4010 5 th Ave. on Wednesday. They spoke with Christopher Worley, who said that earlier that day he was in front of his residence when Johnson drove up and asked him if he wanted to buy some pills. He said he told Johnson no and Johnson drove off. ... (click for more)

Jill Levine Is An Educational Rock Star

No one has covered the Hamilton County Department of Education drama better than Roy Exum.  Thank you, Roy, but I take issue with your unnamed sources.  Professional jealousy and sour grape darts should not be anonymous.   HCDE is so dysfunctional, and there is good cause to place this public organization under a microscope, dissect it into pieces and discard all ... (click for more)

Roy Exum: Settle It With A Vote

The Merriam-Webster Dictionary, which I consider a pretty good authority on what words really mean, defines “freedom” in this way:  “The quality or state of being free: such as, (a) the absence of necessity, coercion, or constraint in choice or action; (b) liberation from slavery or restraint or from the power of another; (c) independence -- the quality or state of being exempt ... (click for more)

Shoulders, Hester Lead CSAS Past Lookout Valley, 10-7

Most of the regular-season district softball games are in the book and teams are trying to sharpen their skills as they prepare for the post-season in hopes of landing in Murfreesboro for the season-ending TSSAA state tournament the week before Memorial Day. Such is the case for the Red Bank Lionettes, who are hosting the 2016 Red Bank Invitational this weekend at the Red Bank ... (click for more)

McMasters Makes Tough Call To Play Volleyball At Lee

Grace Baptist Academy two-sport standout Claire McMasters envisioned playing basketball and volleyball at a small college after her career ended with the Lady Golden Eagles. So, she “looked at” Covenant College and Maryville College as two schools where she thought that would be possible to extend her two-sport status. McMasters’ recruiting shifted quickly once Lee University ... (click for more)