Simple bet could complicate things in big-time gambling world

At its highest levels, professional sports betting is a complex world filled with computers, code names and an endless flow of cash.

Its most successful practitioners liken their work to day-trading on the stock market. They're not fans, they'll tell you. They're numbers guys.

And when the percentages fall in their favor, they'll bet a pile of money in the seconds it takes to inform the messenger bettors who wager at sports books across the valley on behalf of the home office.

As complex as all that number-crunching can be, the final act of placing the bet is pretty simple: Step right up, make your pick, and produce the cash.

Therein lies the problem for Robert Walker and his as yet unnamed sports betting associates. Walker is simply stuck -- right in the middle of a federal investigation that figures to reverberate throughout the high-end betting world. He was indicted Tuesday by a federal grand jury and charged with four counts of causing a domestic financial institution, in this case a casino, to fail to file an accurate Currency Transaction Report. CTRs, as they are known, are used to track large movements of cash to assist the government in preventing money laundering, and must be filed for transactions in excess of $10,000.

Walker's transactions took place between March 19 and April 3, according to the indictment. The dates are important because the bets were made at a time local sports books were making sure they were following the letter of the federal financial transaction regulations.

If Walker is worried, it wasn't evident Wednesday afternoon during his initial appearance in federal court before U.S. Magistrate Judge Peggy Leen. Walker, 43, was freed on his own recognizance. A trial date has been set for Feb. 7.

When Walker placed a $32,400 cash wager at the Golden Nugget Race & Sports Book, he was asked whether he was betting for himself or someone else. He "declared that he was not gambling on behalf of anyone, when in truth and fact defendant Robert Walker knew he was gambling and engaging in the cash-in transaction on behalf of ACME Group Trading LLC," the indictment alleges.

Who is behind ACME Group Trading?

ACME Group Trading was incorporated in 2005 by high-rolling gambler/developer Bill Walters, who has had a long and at times tumultuous relationship with law enforcement. From the Computer Group indictment and trial to forfeiture challenges by Metro police, Walters has been on the minds of investigators for years. To date, they have zip to show for their zealotry while Walters has carved out a successful career as a developer and has emerged as a major donor to Nevada political campaigns and charities.

The Computer Group indictment resulted from an FBI investigation and was riddled with shadowy intrigue -- none of which resulted in convictions at trial. Metro's forfeiture was also complex and full of whispered speculation -- and also backfired.

In an interview with "60 Minutes" that aired in January, Walters explained that he's been indicted four times if you include his run-ins with the state attorney general's office. To date, the government has struck out every time.

That's what makes the indictment of Walker so intriguing -- and potentially so difficult to defend should the investigation by the IRS and state Gaming Control expand. At its heart, it's really pretty simple: Did Walker or didn't Walker follow the rules when he placed those wagers? And, second, what are the tax ramifications?

No shadowy intrigue. No complex theories. No legal leaps of faith. Not even a scrap of a wiretap to interpret.

Say it lacks jury appeal and newsprint sexiness, but don't deny that its simplicity has the potential to cause Walker, other runners, and maybe even high-rolling Bill Walters big headaches.

John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. Email him at Smith@reviewjournal.com or call 702-383-0295.
He also blogs at lvrj.com/blogs/smith.