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May.15, 2010, Source: Associated Press

LITTLE ROCK, Ark. — Three Arkansas men have pleaded guilty to gambling charges that link them to another man previously indicted on gambling and weapons charges and accused of connections with organized crime on the East Coast, the U.S. attorney’s office said Friday.

U.S. Attorney Jane Duke’s office named the three as Dana Kuykendall, 55, of Little Rock; Tony Milner, 38, of North Little Rock; and Gene Baker, 60, of Little Rock. Authorities said each pleaded guilty to one count of aiding and abetting in an illegal gambling business.

Officials said the gambling operation took bets on NBA games and other sports.

 In addition, authorities said, Kuykendall pleaded guilty to one count of money laundering and Milner pleaded guilty to one count of providing a gun to the felon accused of running the gambling operation.

The U.S. Attorney’s office said all three were associated with a gambling operation that included George Wylie Thompson, 64, of Cabot. Thompson was indicted Nov. 16, accused of weapons, gambling and bid-rigging violations. He was arrested in Thailand and returned to the U.S., officials said. He has pleaded not guilty.

An indictment filed in federal court in Massachusetts in December accuses Thompson of participating in drug and weapons violations with a group known as the "Deleo Crew," led by Ralph Deleo, 66, of Somerville, Mass. Authorities say Deleo is a leading member of the New York Colombo crime family.

U.S. Attorney Carmen Ortiz of Boston has said the Deleo Crew’s main objectives were to make money from illegal activities and build a cache of weapons. Duke’s office said the person to whom Milner illegally provided a gun — a .218-caliber revolver — was Thompson.

Duke declined to say if any of the three who pleaded guilty this month had agreed to assist in the investigation or prosecution of Thompson or others. Cherith Beck, a spokeswoman for Duke’s office, said Baker pleaded guilty on Friday, Milner pleaded guilty on May 11, and Kuykendall on May 3.

All were freed without bond pending their sentencing, which has not been set, Duke’s office said.

Beck said the investigation is continuing. It has so far resulted in charges in Arkansas against seven people.

According to the November grand jury indictment, Thompson was previously convicted on state and federal drug charges. The indictment charged him with illegally owning 147 firearms, 88 sets of ammunition and five illegal silencers. A North Little Rock alderman was accused in a later indictment of illegally selling guns to Thompson.

Thompson also faces a charge of running the gambling operation. The November indictment accused Thompson of conspiring with another North Little Rock alderman — who has since resigned from the City Council — and a contractor to rig city bids so the operation could collect on gambling debts.

Duke’s office said Kuykendall had agreed to forfeit his profits from the gambling operation, including just over $490,000 seized from his home and safe-deposit boxes. He admitted in court that he had laundered money from the gambling operation by writing a check for $23,500 to Mandalay Bay Casino.

Kuykendall also agreed to file amended and accurate income tax returns for the past six years and to pay penalties and interest for previously unreported income, authorities said, and to pay a $100,000 fine.

The weapons charge to which Milner pleaded guilty accused him of "acting as a straw-purchaser of a firearm" on Thompson’s behalf, authorities said. Milner admitted obtaining the gun without paying any money to the man who provided it — the alderman who has resigned — filling out paperwork for the gun as though he were the buyer, and giving the gun to Thompson after having a scope mounted on it as Thompson had requested, Duke’s office said.

Baker’s role in the gambling operation, authorities said, included "laying off" bets that he took with other participants in the scheme, including Kuykendall and Thompson. Laying off bets is a way to spread risk among several bookmakers.