Sunday, April 06, 2003

Coach, business owners caught in gambling web (Indianola Tribune, April 6, 2003)

Tricia clued me into this one. She worked for this paper out of college.
A massive sports gambling ring based out of a Norwalk man’s home has been broken and 11 people, including three prominent figures from Indianola, have been charged, Warren County Attorney Gary Kendell announced Thursday.

Law enforcement officials, including the Iowa Division of Criminal Investigations, are looking for Robert Derryberry, 59, of Norwalk on charges he allegedly led a multi-million dollar gambling operation that spanned across the country and into locales as far away as Seoul, South Korea and Costa Rica. Derryberry faces 45 years in prison on charges of bookmaking, money laundering and ongoing criminal conduct.

Also arrested Thursday morning were Jerry Watters, 59 and owner of Watters Autoland in Indianola; David Summy, 51 and a history teacher and the head football coach at Indianola High School; and Jarid Downey, 30 and owner of Downey Tire in Indianola. Each face a charge of illegal gambling, a Class D felony punishable by up to five years in prison.

To date, $500,000 in cash and Robert Derryberry’s $160,000 home at 1148 Pinehurst Circle in Norwalk have been seized, with more expected as the investigation continues, Kendell said.


NOW THE CATO INSTITUTE'S THEORY
Confronting uncertainty, taking or hedging risks, presents decisions that are the staple of life and the key to prosperity. There may be risks inherent to gambling, but we should remember that government intervention entails risk too. A coercive effort to eliminate or reduce gambling must compete with that most formidable opponent, human nature. Lawmakers too need to balance the risks.

I don’t see how it is the government’s business if people want to place wagers. This is a victimless “crime” that makes criminals out of people who are really decent hard working citizens. Iowa has casinos, slot machines and a state lottery, so you can hardly say their gambling laws are for moral reasons. These gambling laws are designed to keep the tax coffers over-flowing.

These governments are too big and they bleed cash and they use gambling to fill the till. Everyone else get out of the way. This undercover investigation has been going on since 1999, meaning that the state has spent a ton of resources in lieu of fighting real crime. I’m sure those dollars would have been better spent on unsolved murders. But now the state can sit proudly with $500,000 in cash and a guy’s $160,000 home. They themselves were gambling that they could seize enough money to make a long investigation worth it. The victim in this crime was a guy who provided a service to allow people to wager some money.

Risk theory says that people tend to need a certain amount of risk to feel alive. This is usually the case for men. Several studies have shown that improvements in the safety of cars has caused people to drive more recklessly because the are trying to reach a threshold of risk. Gambling is a very safe way to reach your risk threshold without risking your life.

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