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: ANDREW, KEOSHA SHANEA  4417 OAKWOOD DR APT 1604 CHATTANOOGA, 37416  Age at Arrest: 28 years old Arresting Agency: Chattanooga AGGRAVATED ASSAULT (DOMESTIC) --- BIEGERS, RUSSELL ALLEN  5391 WILBANKS DR HIXSON, 37343  Age at Arrest: 50 years old Arresting Agency: Chattanooga CRIMINAL ... (click for more)

New Book Of Old Chattanooga Photos To Be Issued In Mid-October

A new book of old Chattanooga photos sponsored by Chattanoogan.com will be out in mid-October, publisher John Wilson said. Chattanooga in Old Photos is being printed by College Press at Collegedale in a limited edition of 800 copies. The book is made of mainly of the post card and photo collections of Mr. Wilson, Wes Schultz, Harmon Jolley and David Hawley, along with a number ... (click for more)

Arming Teachers With Guns Will Be Too Dangerous - And Response (4)

Arming teachers with guns in the classroom, as Bill Lee proposes, would be the single most dangerous thing to happen to students in Tennessee history. Students and teachers in close proximity to loaded firearms daily? Across this state, in middle schools alone, there are probably hundreds of student/teacher conflicts a day. What if a student got hold of gun in a struggle with ... (click for more)

Roy Exum: It’s So Sad For Me

I cannot remember a time in my life when I have been as saddened by such a travesty that has now erupted in the confirmation process that would place Brett Kavanaugh on our Supreme Court. I am sad for every single person who has been touched by this catastrophe, from 85-year-old Dianne Feinstein to Brett’s wife and two young daughters, ages 13 and 10. Not a person, in any way involved, ... (click for more)

Chattanooga Holds On To Beat Samford, 27-20

The Samford Bulldogs may have won the battle, but the Chattanooga Mocs won the war. Facing each other in a key Southern Conference football battle at Finley Stadium Saturday night, the Mocs had their hands full, but were able to pull out an important victory by a final score of 27-20 before 10,469 fans. The Bulldogs entered the game on a two-game losing streak, but were leading ... (click for more)

No. 2 Georgia Bulldogs Battles Missouri For A Tough 43-29 Victory Saturday

COLUMBIA, Mo. —   There's more than one way to win a game, more than one way to score, more than one way to, in Georgia football coach  Kirby Smart 's oft-repeated words, attack the day. The No. 2-ranked Bulldogs got out of Columbia, Mo., with a win Saturday  before 58,284 at Faurot Field  in large part because of how they attacked the ball. ... (click for more)