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Sherman and Elaine Lichty (the Lichtys) and Hilton Enterprises,
Inc. (Hilton), in connection with a bingo operation.
Leonard Morrison (Morrison) and the Lichtys established a
successful bingo operation during the early 1980’s at a location
on Warwick Boulevard in Newport News, Virginia (Warwick
location), but they were prosecuted for fraud, and they were
required to divest their interest in the bingo operation as a
requirement of probation. Initially, the divestment was
accomplished by interposing Michael Anderson (Anderson),
Morrison’s son-in-law, to serve the Lichtys’ and Morrison’s
interests. Anderson, due to personal problems, did not
effectively operate the bingo operation, and late in 1988, the
Lichtys and Morrison were referred to petitioner by Mark Gilbert
(Gilbert), a mutual friend.
Gilbert placed petitioner into the bingo business
opportunity as a straw for the Lichtys. In accord with a
December 18, 1988, purchase agreement, it appeared that November
had purchased the assets of Hilton Enterprises, Inc. (Hilton), in
order to operate the bingo business at the Warwick location, a
property leased by the Lichtys. Gilbert also became involved in
the bingo operation and received a salary. In addition, Gilbert
owned an adjacent parking lot used in conjunction with the bingo
business operations. Petitioner was to receive a $50,000 salary
that was to be increased after 1 year. Prior to his involvement
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Last modified: May 25, 2011