Thursday, June 11, 2009
A judge has formally ordered a Waco businessman to forfeit a building that authorities say once served as an illegal gambling room in downtown Marlin.
Falls County 82nd State District Judge Robert Stem signed an order of forfeiture June 5 on a building at 138 Live Oak St. in Marlin owned by Tony Martin. The building, $19,420 in cash and 61 eight-liner gaming machines were seized by the Falls County Sheriff’s Office on Sept. 4, 2007, when an undercover operation exposed the gambling business.
The Falls County raid followed an undercover operation in February 2006 in which the Waco Police Department raided four gambling rooms Martin operated in Waco. Martin pleaded guilty to engaging in organized criminal activity in the McLennan County case in June 2007 and was later sentenced to five years deferred probation, a $300 fine and 300 hours of community service.
The petition for forfeiture was filed Sept. 24, 2007, against Martin, according to Falls County District Attorney Jody Morris. Waco-based financial and real estate company J-Hawk 1 Ltd. intervened, claiming an ownership stake in the building. The company produced court documents that showed it lent Martin $545,000 and secured the money by taking out liens on the Marlin building and several other properties Martin owned.
J-Hawk 1 Ltd. also had lent Martin $225,000 to purchase 135 eight-liner machines from the company that were seized in the McLennan County raids. The company was allowed to repossess the machines and sell them to pay off Martin’s debt.
Jim Hawkins, president of J-Hawk, filed a bond on behalf of J-Hawk 1 Ltd. on Jan. 14, 2008, that allowed the company to take possession of the building while the forfeiture litigation proceeded, Morris said. Morris said the building was not open to the public or used since the initial seizure.
A final hearing was held on the forfeiture of the building May 12. Though attorneys were present for Martin and J-Hawk 1 Ltd., neither Martin nor a representative from the company came forward to prove they were unaware that the gambling ring was taking place in the building.
“I proved there was a game room going on, and the burden shifted over to him to prove that he didn’t know it was going on, and he didn’t come to testify,” Morris said.
Martin declined to comment on the decision Wednesday through his attorney, Jonathan Sibley. Phone calls to Gary Coker, the lawyer that represented J-Hawk 1 Ltd. in the May hearing, were not returned late Wednesday.
Morris said Martin leased the building to tenants who operated the gambling room, and at least two of the tenants were indicted, officials said. Criminal charges have not been filed against Martin in the Falls County case.
Items seized by law enforcement officers are forfeited to the arresting agency and the district attorney’s office and may be used by the agencies or sold. Proceeds from the sale of a forfeited item are used by the two agencies for law enforcement purposes, Morris said. The estimated tax value of the Marlin building is $45,920, Morris said.
rdennis@wacotrib.com
757-5755
