Post worker takes blame for video poker machines

NASHUA, NH – In a wild day of testimony a former liquor investigator linked former Milford Selectman Doug Bianchi to an illegal gambling operation at the Milford Veterans of Foreign War post, shortly after a man working for the post deflected blame from Bianchi.

"I was in charge of the whole thing," said Arthur Gagnon, of 8 Ash St., Milford, from the stand. "I did it for the VFW."

Prosecutors charge that five video poker machines in the Harley-Sanford VFW Post were used to make illegal gambling payouts during the course of an undercover investigation running from October 2006 to February 2007. The post was raided Feb. 24, 2007, during a dinner dance.

Former New Hampshire Liquor Commission investigator Steven Lee testified Wednesday that Bianchi admitted to receiving illegal gambling money in December 2006.

"(Bianchi) said he knew it was wrong," said Lee.

Bianchi, 60, a Milford native who now lives in Jonesborough, Maine, is accused of leasing the five machines. Bianchi, who resigned as quartermaster of the Harley-Sanford VFW Post shortly before the undercover investigation began, faces charges of conspiracy to commit gambling and "liability for the conduct of another."

Bianchi's trial in Hillsborough County Superior Court began Tuesday.

Judge Diane Nicolosi continued the trial until 10:30 a.m. today, when the jury is likely to hear closing remarks from both sides. Bianchi is not expected to take the stand.

Video poker machines are legal if they are used only for amusement, but Gagnon, who was steward of the Harley-Sanford VFW Post for 14 years, testified that the practice of using them started years ago. He said he learned about it from his predecessor when he took over his VFW job in 1994.

Gagnon was asked by the prosecutor if he knew that the practice of making cash payouts for winnings was illegal.

"Only if you get caught," he said. The jury erupted in laughter.

Prosecutors have alleged that Bianchi was paid $500 every other week from the winnings.

"Easy money, that's what this case is about," said Assistant County Attorney Patricia LaFrance in her opening remarks Tuesday.

But Gagnon testified Wednesday that the money was used to pay Bianchi's personal insurance, and came from a legitimate canteen fund, as part of an agreement that Bianchi made when he assumed the post of steward.

Gagnon said the profits from the poker machines – which he estimated at $14,000 a month – helped fund the club and pay for its charitable work.

Former state liquor investigator Lee took the stand after Gagnon.

He testified that Bianchi admitted knowing about the illegal gambling and made the admission so law enforcement would "show compassion" and not go after the entire VFW post, including employees and elderly members of the club.

Lee also said Bianchi knew that his name was attached to several documents pertaining to the video poker machines.

However, during cross-examination by Bianchi's attorney, Jim Dennehy, Lee waffled on whether the documents were leases or merely invoices.

Dennehy argued the difference was important because a lease is a contract, but an invoice is not. Dennehy said the state is arguing that Bianchi had leased illegal poker machines, but failed to produce such a contract.

Raymond Blandeau, head of Happy House Amusement, the company that owned the video poker machines, also took the stand. He testified that a different officer with the VFW post signed the contract years ago, but that his staff could not find the original contract.

Confusion over the documents almost derailed the entire trial.

Judge Nicolosi agreed with Dennehy that the difference between a lease and an invoice was important and nearly granted Dennehy's motion to dismiss the state's case against Bianchi because of the uncertainty.

"In my view, this is a close one," said Nicolosi after ruling that the case should continue.

During the discussion over this motion, prosecutor LaFrance said the documents, whether leases or invoices, proved Bianchi was responsible for the poker machines.

In Tuesday's opening remarks, Bianchi's attorney, Dennehy, said the entire VFW organization was responsible for any illegal gambling at the post.

"They should have done a little more work and gone after the right people," Dennehy told the jury. "Who is responsible for leasing those machines? The VFW, not Doug Bianchi."

Dennehy claimed the state was charging Bianchi for political reasons, because an elected county attorney would risk backlash by going after veterans during a time of war.

During her testimony, undercover agent Valerie Smith said she received illegal winnings from the post while posing as a VFW guest who often played machines. She was accompanied by Hudson Police Detective Jason Lucontoni, who played her husband or boyfriend.

Bianchi served a year as a selectman in Milford before stepping down in 2006 over dissatisfaction with the way the board was running the town.

Nashua Telegraph

News Added: 17 July, 2008

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