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Witness Says N.C. Lottery Commissioner Met With Possible Vendor

North Carolina LotteryNorth Carolina Lottery: Witness Says N.C. Lottery Commissioner Met With Possible Vendor

Within days of joining the state's lottery commission, Kevin Geddings met with a man who wanted to do business with North Carolina, an attorney testified Monday at Geddings' federal fraud trial.

Joe Lucas, a Charlotte lawyer, said he arranged for Geddings to meet with a friend who maintained instant ticket machines for the Georgia lottery. The friend performed the work under contract with Scientific Games Corp., Lucas said.

Prosecutors have accused Geddings of failing to disclose to the State Board of Ethics that his Charlotte-based public relations firm received more than $250,000 from Scientific Games or companies it acquired. He is charged with eight counts of fraud and faces up to 20 years in prison and thousands of dollars in fines on each count.

Lucas told the jury his friend was "interested in expanding his business into other states."

Another lottery commissioner, Gordon Myers, declined to meet with Lucas and his friend because he was uncomfortable talking to a potential state lottery contractor, Lucas testified.

The meeting took place Sept. 27, 2005, five days after the announcement that Geddings would be appointed to the panel, Lucas said.

Geddings never agreed to help the friend find work, Lucas said during cross-examination.

The men also talked about GTECH Holding Corp., which was believed to be the primary rival to Scientific Games. GTECH ultimately won the contract to run the instant and online lottery games in North Carolina.

Prosecutors spent much of Monday morning laying groundwork for the specific charges in the indictment.

Lottery commissioner Bob Appleton identified an e-mail sent by Geddings to commissioners containing a news article about the Oklahoma state lottery.

"One day next year, this will be us," Geddings wrote in the e-mail. Scientific Games won the Oklahoma lottery vendor contract, although the company never was mentioned in the article.

Appleton said that he didn't believe that Geddings tried to promote Scientific Games during his six weeks on the commission or in the e-mail.

Prosecutors alleged in the indictment that sending the Oklahoma article constituted wire fraud.

"It was just an upbeat message, encouraging us to go along with the lottery, and we would be successful," Appleton said.

Earlier, Geddings testified without the jury present as his lawyer argued that an e-mail that the two of them exchanged shouldn't be allowed as evidence in the trial.

The e-mail included a chronology of events leading up to the fall of 2005, when Geddings was appointed to the state lottery commission. He resigned less than six weeks later, hours before Scientific Games disclosed that it had paid him $24,500 after his appointment.

Geddings testified that he put together the list at the request of his lawyers. U.S. District Court Judge James C. Dever III ruled that it was protected communication between a client and his attorney and ordered that the document be sealed.

AP

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5 comments. Last comment 10 years ago by tntea.
Page 1 of 1

United States
Member #16612
June 2, 2005
3493 Posts
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Posted: October 3, 2006, 1:01 pm - IP Logged

I hope at least one count of fraud in the trial is gulity and make Mr. Geddings go to prison.

    guesser's avatar - Lottery-017.jpg

    United States
    Member #41383
    June 16, 2006
    1969 Posts
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    Posted: October 3, 2006, 1:24 pm - IP Logged

    As far as I am concerned, Geddings didn't do anything that our Congressmen, Senators, County Boards, City Councils, School Boards, any other 'commissions', etc.  don't do.

    They ALL have their fingers in the pie, don't kid yourself.  There isn't a single one anywhere that hasn't done something to help themself or an aquantance 'get' something or have something done in their favor.

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      United States
      Member #1826
      July 11, 2003
      2645 Posts
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      Posted: October 4, 2006, 4:38 pm - IP Logged

      Just a tidbit everyone, but the new Carolina Hurricanes scratch game was manufactured by Scientific Games. I guess this trial isn't souring the lottery's perception of Scientific.

      (insert signature here)

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        United States
        Member #26469
        November 18, 2005
        160 Posts
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        Posted: October 6, 2006, 10:40 am - IP Logged

        Just a tidbit everyone, but the new Carolina Hurricanes scratch game was manufactured by Scientific Games. I guess this trial isn't souring the lottery's perception of Scientific.

        There's a good reason for them using SG for the tickets.By previous arrangement,NC agreeded to use SG for some scratch offs in order to avoid paying a user fee for the right to use the "PowerPlay" feature of the Powerball tickets.SG has the patent on "PowerPlay" and could have charged NC big bucks to use it.Instead,NC agreed to use SG for some scratch-offs.

          tntea's avatar - Lottery-059.jpg

          United States
          Member #5344
          June 30, 2004
          23641 Posts
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          Posted: October 15, 2006, 7:59 am - IP Logged

          As far as I am concerned, Geddings didn't do anything that our Congressmen, Senators, County Boards, City Councils, School Boards, any other 'commissions', etc.  don't do.

          They ALL have their fingers in the pie, don't kid yourself.  There isn't a single one anywhere that hasn't done something to help themself or an aquantance 'get' something or have something done in their favor.

          I agree..

          Unfortunately, he cannot put clauses into the written laws to fit his needs..  You have to be president to do that..

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