-5- Despite Mr. Paterson’s efforts to avoid being caught at his illegal activities, agents of the Minnesota Gambling Enforcement Division searched Mr. Paterson’s home and his son’s apartment on December 12, 1999. The agents arrested Mr. Paterson and seized gambling records covering 4 days of betting and three cellular phones. The gambling records seized indicate that Mr. Paterson accepted an average of $96,070.50 of bets each day for those 4 days, a vastly larger amount than the gross wagers Mr. Paterson reported on the Forms 730. In fact, the total gross wagers accepted over those 4 days exceeded the total wagers Mr. Paterson reported he accepted for the entire year 1997 or the entire year 1998. Moreover, the seized records did not include a Saturday, which is generally a high-volume day, and included one partial day of wagering because the search commenced before the day’s wagering was complete. Mrs. Paterson’s Activities Mrs. Paterson was aware of her husband’s illegal gambling activities. She has worked as a flight attendant for Northwest Airlines (NWA) for approximately 25 years, but she worked only limited hours during the years at issue. In fact, NWA reported it paid her only $3,105 in 1997 and $16 in 1998. Mrs. Paterson helped her husband hide his bookmaking activities although she did not accept bets herself. She obtained the cellular phones in her name that were seized in thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 10, 2007