Local Attorney and Associate Plead Guilty to Operating Illegal Sports Betting Business

March 4, 2010 - Two defendants entered guilty pleas as part of an ongoing investigation into large scale sports gambling in the metropolitan Detroit area, United States Attorney Barbara L. McQuade announced today.

United States Attorney McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge of the Detroit, Michigan Division of the Federal Bureau of Investigation and Chief Lee Gavin of the Dearborn Heights Police Department.

JOHN STEPHEN SHELLY, age 49, and DAVID ALAN STRONSKI, age 55, both of Grosse Pointe Park, Michigan entered felony pleas today in United States District Court before Judge John Corbett O’Meara. Both men pled guilty to operating an illegal gambling business in violation of federal law.

The felony convictions arose from SHELLY’s and STRONSKI’s involvement in a multi-state organization that generated hundreds of thousands of dollars in profits from individuals who bet on professional and collegiate athletic events. According to court documents, the subject organization made as much as $25,000.00 a week from illegal betting activities. The gambling activities were conducted at defendant SHELLY’s law offices and at bars located in Detroit and Dearborn. Search warrants executed in Michigan and Florida resulted in the seizure of more than $250,000.00 in U.S. currency. Law enforcement authorities expect to forfeit cash, vehicles, and real property valued at more than $350,000.00 as part of the prosecution.

Special Agent in Charge Arena stated, “Illegal gambling is by no means a victimless crime. The FBI, with the cooperation of our law enforcement partners, is committed to aggressively investigate illegal sports betting and illegal criminal enterprises.”

Ms. McQuade singled out the Special Operations Bureau of the Dearborn Heights Police Department for its outstanding efforts on behalf of the investigation.

Sentencing of the defendants will be held on June 23, 2010 at 2:00 p.m. before United States District Judge John Corbett O’Meara in Ann Arbor, Michigan.

The case was investigated by the Federal Bureau of Investigation and the Dearborn Heights, Michigan Police Department.