The sheriff of Haywood County was paid thousands of dollars every month to look the other way so a South Carolina company could continue to operate illegal video-poker machines, a company official testified.
The Asheville Citizen-Times reported yesterday that an employee of the Henderson Amusement Inc., Jerry Pennington, told a court that the payment of $100 a month for each illegal machine was required or else, "We could not operate in the county."
Pennington testified Monday at the federal corruption trial of the former sheriff of Buncombe County, Bobby Medford, who is accused of taking tens of thousands of dollars in bribes to protect illegal gambling operations in Western North Carolina.
In his testimony, Pennington never used the name of Sheriff Tom Alexander of Haywood County. Federal prosecutors have said that they are investigating other "current and former law-enforcement officials."
But Alexander, who has held the office since 1987, has not been charged with a crime or listed in any court papers.
Alexander said Monday that he had never met Pennington and declined to comment on his allegation. Alexander did not immediately return a call to his office by The Associated Press.
"You can call just about anybody in Haywood County, and they will give Tom a good name because Tom has been a good sheriff," said Howard Leatherwood, the president of the Haywood County Democratic Men's group, of which Alexander is a member. "I have never heard anything bad about Tom."
In February, Pennington pleaded guilty to illegal gambling and money laundering, among other charges. He admitted helping Henderson Amusement scout for new locations for the company's video-poker machines, which are banned in North Carolina.
Federal prosecutors said that Henderson Amusements made at least $14 million over seven years through illegal gambling operations in Western North Carolina, paying more than $114,000 in bribes.
Twenty-four people have pleaded guilty in the government's investigation into the gambling ring. Medford's attorneys have said that he didn't know about corruption in his office and had little involvement in regulating video-poker machines.
Describing the codes in the company's records of the illegal payments, Pennington told the jury the name "LG" stood for former Buncombe County Lt. James Grant and "CG" stood for former Capt. Bill Green. Both denied receiving bribes or having any knowledge of the payments.
"This is one thing I never fooled with up there," Green said. "I had a job to do -- community policing. I've been in this business for a long time, and I don't take money from anybody."
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