S.A. poker star charged in probe

San Antonio's most famous poker player has been charged with gambling promotion, which could result in him losing most of the nearly $3 million he won during the World Series of Poker.

Four men associated with Richard Henry Lee, including his son-in-law, were also charged Thursday with the same misdemeanor offense, according to documents filed by District Attorney Susan Reed's office. The charges are the culmination of a nearly 14-month investigation by San Antonio police into Lee's online gambling operation, prosecutors say.

The charges are a precursor to plea deals that would require at least four of the men to forfeit 80 percent of money police detectives seized during the probe, which largely targeted Lee over allegations that he headed the bookmaking operation.

Lee, 56, became a household name here in August 2006 after placing sixth in the World Series of Poker's main event in Las Vegas — the world's most prestigious poker tournament. During the tournament, he was featured wearing a shirt with "San Antonio" emblazoned across the front.

But court and police records quote a "credible source" who says Lee was known behind the scenes as "The Chinaman" and "the biggest bookie" in San Antonio, linked to a Web site that allowed people to place bets.

The Web site, www.betbsbnow.com, pretended to be offshore but was actually a local operation that took bets and collected and paid proceeds from illegal gambling and sports booking, court records say. Police contend Lee's home in Shavano Park was the "nerve center" of the operation.

Besides Lee, Reed's office charged Lee's son-in-law, Lawrence "Larry" Joseph Davenport, 30; Matthew Colburn Winslow, 57; Marco De Carlo Hernandez, 31; and Daniel Ortiz, 30; with gambling promotion, which is punishable by up to a year in jail, a fine of $4,000 or both. They are tentatively scheduled to be arraigned Nov. 7 before County Court 4 Judge Sarah H. Garrahan-Moulder, records show.

Separately, Reed's office had filed civil forfeiture proceedings to try and keep cash, property and other items seized in a search of Lee's home and the residences of the other suspects.

The deals in the works are expected to let each of the defendants avoid jail time and potential felony prosecution. In exchange, four of the defendants would forfeit 80 percent of the money taken from them. Most or all of the personal property and vehicles seized, however, would be returned. The deals could be forthcoming as soon as next week.

Lee's lead lawyer, Jimmy Parks Jr., was not willing Friday to speak freely about the developments.

"We're certainly aware the charges have been filed," Parks said. "There's a lot of activity on the case that I just can't comment on."

Under the plea bargain confirmed by the Express-News, Lee stands to lose the most.

Police detectives seized from Lee almost $2.7 million plus a 2005 Lexus LX470, a 2005 Mercedes S430, a 2004 Toyota 4Runner, numerous high-end designer handbags, electronics, watches, jewelry, sports memorabilia and a currency counter. In court records, Reed's office alleges the money is proceeds from the on-line bookmaking, but Lee's lawyers contend the nearly $2.7 million is what he won during the poker tournament at the Rio Hotel and Casino in Las Vegas.

Officers also took $221,407 from Ortiz, $113,893 from Winslow and $14,382 from Davenport, court forfeiture paperwork shows. A search of records shows no forfeiture proceedings against anything taken from Hernandez.

"We had been in negotiations with the District Attorney for some number of months," said Davenport's lawyer, Van Hilley.

Hilley confirmed that deals in the works involve an 80/20 split.

"That's what she wants and that's what she's going to get; it looks like it to me," Hilley said of Reed. "They've been pretty adamant about what they want from the beginning."

Ortiz's lawyer, Johnny E. Cisneros, said he was unaware the charges had been filed, but acknowledged some talks had been ongoing about the money.

"The only thing I can say is Daniel is a great, great guy, a wonderful man," Cisneros said. "Some negotiations are in progress, however, we haven't officially settled on a figure yet."

Winslow's attorney, John Convery, was out of the country and unavailable for comment.

It was unclear if Hernandez had an attorney.

Records show that during the investigation, an undercover detective placed bets to obtain evidence against the group, losing $500. The documents said Lee employed "runners" to help with the operation, and the charging documents list his four co-defendants as having "engaged in a scheme, through a Web site, to receive, record, or forward bets or offers to bet."

In an interview with the Express-News last year, Lee denied doing anything illegal and said he had never engaged in bookmaking. After the raid on his house, he said he had gone from "a hero to zero in the course of a few hours."

Lee said he had made a fortune from selling diamonds and importing silver from Mexico.

Police were not convinced.

In court-filed affidavits, they said there was no evidence Lee or any of the other defendants had a job.

San Antonio Express

News Added: 06 October, 2007

Number of views : 943