Former ABC Manager in North Carolina Pleads Guilty to Gambling with Government Funds

A former manager of an ABC liquor store in Rutherford, North Carolina, Russell Hester, 72, found himself at the center of a criminal investigation when it was discovered that he used his government-issued debit card to withdraw money from the Catawba Two Kings Casino. Over a two-year period, he withdrew the funds 192 times, allowing him to win more than $1.5 million on slot machines.

Hester became addicted to gambling using taxpayer money. Federal prosecutors say he regularly withdrew money from the card and gambled it at the casino. During his two-year gambling spree, he managed to win over $1,469,000, including a massive $18,350 jackpot on Independence Day 2022.

Hester sent the winnings to his personal bank account as part of his scheme to hide the thefts. However, the fraud was discovered during an annual audit by an independent auditor in 2023. To hide his actions, Hester falsified bank statements by adding fictitious transactions and deleting all transactions related to the casino.

Hester is currently out of prison awaiting sentencing. He faces up to 20 years in prison on the fraud charge and up to 10 years on the money laundering charge. No trial date has been set yet.

U.S. Attorney Dina King expressed gratitude to the investigators involved in the investigation, including the Internal Revenue Service, the U.S. Postal Service, Rutherford police and the Rutherford County District Attorney.

The Catawba Two Kings Casino, where Hester spent the stolen money, opened in 2021 and is temporarily operating off Interstate 85, 35 miles west of Charlotte. The Catawba Tribal People of South Carolina plan to complete a permanent $700 million casino resort by 2026.

The case is one of a number of high-profile gambling crimes. Earlier this year, a former European investment manager was charged with embezzling between €16 million and €30 million, which he also spent on gambling.