VALERIE WIGGLESWORTH
Staff Writer
Published: 15 August 2013 11:20 AM
Updated: 15 August 2013 12:57 PM
Federal authorities and Plano police announced Thursday that they have broken up a major illegal gambling operation run out of North Texas that collected more than $5 billion in bets over a four-year span.
The investigation into the group lasted more than a decade and resulted in the prosecution of 18 bookkeepers, most of whom lived in the Dallas area. The bookkeepers collected bets on sporting events, especially football games. No bettors were prosecuted in the case, authorities said.
Those defendants are believed to have made more than $200 million from 2007 to 2011.
Called The Reed Group, the operation was led by 57-year-old Southlake resident Albert Sydney Reed, authorities said. He has been convicted in federal court of running an illegal gambling business and was sentenced to one year in prison.
Authorities compared the organization to an illicit Mary Kay type operation. Reed was the organizer, but operators made money by recruiting lower level bookies to collect bets.
Many of the bets were made online and reached enormous amounts, sometimes six or seven figures, authorities said. Members would meet and interact at restaurants, sports bars, country clubs, parking lots and each other’s houses. For most of the participants, the operation was a full-time job.
The group was infiltrated by an undercover Plano detective after the department received an anonymous letter in 2001.
That detective placed multiple bets during his investigation and eventually gained the trust of some participants, police said. By the mid-2000s however, the department began to realize the scope of the operation was too large for one department to handle. Eventually, the Internal Revenue Service and U.S Attorney’s Office Eastern District of Texas were brought in to help.
Authorities said the bookies were cooperative once contacted by police, and all have struck plea deals. Only Reed has been sentenced to jail.
U.S. Attorney John M. Bales said that is because the federal statue related to gambling doesn’t carry large penalties.
“They are receiving lenient sentences,” Bales said.
But about $10 million worth of property was seized in the case. That included about $4 million in cash taken from safes and bags belonging to Reed Group members. It also included signed sports memorabilia, gold pieces and luxury condominiums in Dallas and Las Vegas.
Authorities announced the arrests and seizures at a press conference at the Plano Police Department. Along the side of the training room where the press conference was held, police lined up jerseys, golf shirts and helmets signed by famous athletes like Earl Campbell, Tom Brady, Tiger Woods and Dirk Nowitzki. Those items will be auctioned and the proceeds will be divided among the investigating entities.
“Taking away the assets from these illegal organizations hits criminals where it hurts the most – it deprives them of their profits,” said Madie Branch, who led the criminal investigation for the IRS.

Below is a list provided by the U.S. Attorney’s Office of the people arrested and their punishments:
- Albert Sydney Reed, Jr., 57, of Southlake, Texas, was convicted of prohibition of illegal gambling business and sentenced to 12 months and 1 day in federal prison.
- Curtis Wayne Higgins, 45, of Proper, Texas, was convicted of engaging in monetary transactions in property derived from illegal gambling and sentenced to 5 years of probation.
- David Mullins, 48, of Coppell, Texas, was convicted of engaging in monetary transactions in property derived from illegal gambling and sentenced to 5 years of probation.
- Dean Hartley Maddox, 69, of Houston, was convicted of willful failure to file a tax return and sentenced to 18 months of probation.
- Carl Francis, 71, of Dallas, was convicted of prohibition of illegal gambling business and was sentenced to 3 years of probation, 6 months home confinement and 200 hours of community service.
- Andrew Harris McElroy, 44, of Dallas, was convicted of engaging in monetary transactions in property derived from illegal gambling and sentenced to 3 years of probation.
- Steven Arnold Bell, 58, of Arlington, Texas, was convicted of prohibition of illegal gambling business and sentenced to 2 years of probation and 6 months home detention.
- Neil Marcus Gerson, 51, of Frisco, Texas, was convicted of prohibition of illegal gambling business and sentenced to 2 years of probation.
- Robert Primm, 71, of Fort Worth, was convicted of a violation of willful failure to file a tax return and sentenced to 6 months of probation.
- Charles Albert Brawner, 66, of McKinney, Texas, was convicted of engaging in monetary transactions in property derived from illegal gambling and sentenced to 5 years of probation.
- Adam John Brady, 36, of Irving, Texas, was convicted of prohibition of illegal gambling business and sentenced to 2 years of probation.
- William Craig Robertson, 42, of Rockwall, Texas, was convicted of prohibition of illegal gambling business and sentenced to 3 years of probation.
- Thomas Applegate, 45, of Carrollton, Texas pleaded guilty to prohibition of illegal gambling business and is awaiting sentencing.
- William Michael Christopher, 56, of Fort Worth, pleaded guilty to prohibition of illegal gambling business and is awaiting sentencing.
- Larry Dean Coralli, 78, of Addison, Texas, pleaded guilty to prohibition of illegal gambling business and is awaiting sentencing.
- Brent Lee Coralli, 48, of Plano, Texas, pleaded guilty to prohibition of illegal gambling business and is awaiting sentencing.
- Robert Roy Hodges, 71, of Dallas, pleaded guilty to prohibition of illegal gambling business and is awaiting sentencing.
- Gregg Richard Merkow, 49, of Plano, Texas, pleaded guilty to prohibition of illegal gambling business and is awaiting sentencing.

"“Taking away the assets from these illegal organizations hits criminals where it hurts the most – it deprives them of their profits,” said Madie Branch, who led the criminal investigation for the IRS."

Yes Madie Branch, and the government bas to take that money so that it can do more noble things with it like drop bombs on people and spy on everyone. I'm sure glad that they've got their priorities straight and are going after gamblers instead of wasting time on petty things like drug cartels and child sex trafficking.

If this was wiseguys they woulda got years

lol the worst one was a year in the pen? that sure as hell makes taking bets worth it huh?

The guys named coralli actually have mob connections or at least did in his younger yrs. he once worked as he called it "wacking out guys " for St. louis mob associate sid wyman. His wacking out wasnt killing guys it was cheating them in cards. Larry was is a master card mechanic. He wrote a book several yrs ago about his exploits. his real name isnt coralli but claims he was connected to a mob guy named coralli. who that coralli was I have never been able to figure out. he said the guy went back and forth between st louis and chicago.