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.


Crime Stoppers: Armed Robbery At Highway 58 Family Dollar

Crime Stoppers and the Chattanooga Police Department are seeking information and the identity of the suspects of an armed robbery at the Family Dollar at 4749 Highway 58.  On April 7, at approximately 8:10 a.m., Chattanooga police responded to a robbery at the Family Dollar.  Two masked suspects entered the store and demanded the money from the registers. One of the ... (click for more)

Cleveland, Tn., Woman Missing Since 2011 Turns Up In Mississippi

A Cleveland, Tn., woman who had been missing since 2011 was found Tuesday in Mississippi. The Biloxi Sun Herald said 50-year-old Tammy Renee King, was walking along Mississippi 613 when a citizen stopped to help her. The Good Samaritan called the sheriff's office. Members of a local church plan to drive her back to Cleveland after she is checked out at a hospital. The newspaper ... (click for more)

Time For Tennessee To Act On Climate This Earth Day - And Response

Tennessee will join the rest of the southeast region, the nation and countries across the world in celebrating Earth Day on April 22. The entire month of April is a great time to reflect on the strides we have made to reduce pollution over the last 44 years, and assess current environmental conditions while evaluating our personal responsibility to a cleaner environment.  ... (click for more)

Roy Exum: Why Jim Coppinger Excels

Jim Coppinger, who as the mayor of Hamilton County has understandably had to grow some thick skin, wants no part of the repulsive billboards now seen around town that ask, “Do you have gonorrhea?”  His Tuesday morning telephone call revealed he is just as disgusted as the rest of us who see them showing a picture of a forlorn African-American male. “You need to know the Hamilton ... (click for more)

Owls' Fugate Fires Two-Hit Shutout In 2-0 Win Over Blue Raiders

Ooltewah was on the verge of a District 5-AAA double-header sweep against Cleveland. But the Blue Raiders’ hot-hitting catcher Hunter Oliver had other ideas. The Owls rode Logan Fugate’s brilliant two-hit shutout and two first-inning runs to a 2-0 win over Cleveland in the first game at A.C. Bud Ball Field on Wednesday. “Logan is an absolute warrior,” Owls coach Brian Hitchcox ... (click for more)

UTC Men Netters Stop Davidson, 4-2

Chattanooga needed Jorge Varon's best match of the season and got it. The Valencia, Venezuela senior's straight set win at No.2 singles clinched the Mocs 4-2 win against No.8 seed Davidson in a first round match of the Southern Conference Tennis Championship at The Champions Club in Rivermont. "Jorge played great in singles and doubles (winning at No.3) and of course ... (click for more)