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.



Upcoming City Council Agenda For Tuesday

Here is the upcoming City Council agenda for Tuesday: I. Call to Order. II. Pledge of Allegiance/Invocation (Councilman Mitchell). III. Minute Approval. IV. Special Presentation. PUBLIC HEARING - Annexation - Lookout Mountain Conservancy PUBLIC HEARING - Deannexation - Institute of Health and Healing V. Ordinances – Final Reading: PLANNING ... (click for more)

No Injuries Reported In Apartment Fire Friday Morning

Chattanooga firefighters were dispatched to a reported fire in North Chattanooga shortly before  10 a.m.  on Friday.   When firefighters arrived at 316 Chambliss Street, light smoke was showing from the quadplex. Battalion Chief Chris Warren said the fire appears to have started on the backside of one of the apartments. Chief Warren said a neighbor was ... (click for more)

Managed Hunting Is Necessary In Maintaining A Stable Deer Population - And Response

I enjoy seeing the whitetail deer that we have in so many areas here in East Tennessee, but here in Hamilton County we have been approaching the maximum habitat sustainability in some places including the Enterprise South area. I make this statement due to the fact that I have seen up to 20 deer driving around in Hixson in one evening during the summer. I believe that TWRA is doing ... (click for more)

Roy Exum: At Last! New Schools

In this me-me-me-only-me world of today, we-we-we-finally got a thrilling $125 million facility plan for the Hamilton County Department of Education on Thursday night. The School Board unanimously approved a well-thought-out “first Band-Aid” that will provide a new elementary school in Harrison, middle schools in East Hamilton and Howard, and a quite-satisfactory answer to move ... (click for more)

Baylor Wins State Volleyball Title

MURFREESBORO, Tenn. – There were tears on both sides of the court at MTSU’s Murphy Center Thursday afternoon. There were tears of relief and joy for the Baylor Lady Red Raiders while the tears for the Briarcrest Lady Saints represented heartbreak and disappointment. Such is the case when two really good volleyball teams meet for the second straight year for a D-II Class AA ... (click for more)

Lanters Are Latest Sister Acts Leading Lady Flames Teams

When one looks back on the success of the Lee University women’s soccer program over the past 16 years, it is easy to see what sisters have provided. Records show the surge began in 2001 and continues today with senior Summer and freshman Anna Lanter (former Soddy Daisy High School standouts) helping spark the Lady Flames to a current 8-4 overall mark and 7-2 in the rugged Gulf ... (click for more)