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GUILTY VERDICTS ON ALL SEVENTEEN COUNTS IN REVERE VIDEO POKER RACKETEERING TRIAL

 BOSTON, Nov. 18 ~PRNewswire~ -- The owner of Revere Amusement Company was found guilty today on all seventeen counts in a racketeering trial involving video poker machines in the city of Revere.
 U.S. Attorney A. John Pappalardo announced today that Arthur M. Marder, age 63, formerly of Palm Springs, Calif., and Swampscott, Mass., was found guilty by a jury on all counts of a seventeen-count federal indictment. The indictment, returned Feb. 26, 1992, charged Marder and his son Steven M. Marder, with racketeering, operating an illegal gambling business, money laundering, using interstate facilities to promote an illegal business, tax evasion, and structuring a currency transaction to avoid reporting requirements. Steven Marder pled guilty to all counts in which he was named on Oct. 5, 1992, the first day of trial.
 Pappalardo stated that evidence presented at the six-week trial established that from 1980 through June 15, 1989, Marder owned and operated Revere Amusement Company, a vendor of video draw poker machines. The video poker machines were placed in various bars and social clubs in the city of Revere, where they were unlawfully used as gambling devices. In each location, Revere Amusement Company paid the owner of the establishment fifty percent of the profits from the machines, after first reimbursing the establishment for the winnings, or "hits," won by patrons on the previous night. Employees of Revere Amusement Company collected money from the bars and social clubs 364 days each year, excluding only Christmas.
 In 1984, Marder left Massachusetts for California, where he leased an elegant home in the hills of Palm Springs. Despite his distance from Massachusetts, Marder maintained daily control over the operations of Revere Amusement Company by making numerous telephone calls to his employees, bar owners, and others in the City of Revere. Cash proceeds from the video poker business were shipped to Marder in Express Mail boxes prepared by Revere Amusement employees. Through these proceeds, Marder was able to maintain a lavish lifestyle, including multiple trips to Europe and the Orient, expensive cars, and shopping sprees on Rodeo Drive in Beverly Hills. For the nine years in which Revere Amusement Company was in operation, Marder neither filed a federal income tax return nor paid any federal or state income taxes.
 The evidence further established that Marder directed his employees to make monthly payoffs for police officers and others in Revere. The monthly payments insured that Revere Amusement Company's operations remained unmolested and that other video poker companies could not encroach on Revere Amusement Company's locations. In addition, in return for the monthly payments, Marder was given advance word of police actions planned for Revere Amusement Company locations, permitting him and his employees to take steps to hide or remove the video poker machines.
 On June 15, 1989, agents of the Internal Revenue Service raided bars and social clubs in Revere, seizing over seventy video poker machines. These machines, and the cash inside them, were forfeited to the United States as a result of today's conviction.
 Marder faces a maximum sentence of 20 years imprisonment on each of the racketeering and money laundering counts, 10 years on the structuring count, and 5 years on each of the remaining counts. He also faces a fine of $250,000 on each count. United States District Judge Mark L. Wolf scheduled sentencing for both Marder and his son, Steven Marder, for Jan. 26, 1993.
 The case was investigated by special agents from the Criminal Investigation Division of the Internal Revenue Service. It is being prosecuted by Assistant U.S. Attorneys Ernest S. DiNisco and Michael J. Tuteur of the Organized Crime Strike Force Unit of the U.S. Attorney's Office.
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 ~CONTACT: Press Officer, U.S. Attorney's Office, 617-223-9445~


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Date:Nov 18, 1992
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