Marc Gergely allegedly advised business owners to place illegal gaming machines in their businesses.
Pennsylvania State Representative Marc Gergely has been charged with involvement in an illegal video gambling machine ring. Gergely is accused of pressuring up to 70 restaurant owners to place the illegal gaming machines in their Pennsylvania restaurants. When the operation was raided in 2013, it was revealed to have 70 locations, 350 gaming machines, and over $1 million a year in profits.
The head of the crime ring was Ronald “Porky” Melocchi. Ronald Melocchi ran a super PAC of “heavy hitters”. Instead of running his political action committee for the sake of activist fervor or positive change, he ran the operation for a profit motive.
Marc Gergely a Pivotal Figure
State investigators say that Rep. Marc Gergely was a key lynch pin in the operation. The 46-year old politician had won 7 terms in office, before his alleged involvement in the Melocchi operation was revealed.
The allegations against the representative are troubling. Ronald Melocchi is said to have used his influence with state and local politicians to strongarm local businesses into accepting the gaming machines, thus pressuring business owners to commit felonies.
Assured Owners He Could Keep Cops Away
At least one business owner says he was assured by Marc Gergely himself that the politician could keep local law enforcement from investigating. Gergely’s Pittsburgh-area district includes McKeesport, which is home to Chick’s Grill. The owner of Chick’s Grill said he was approached by Porky Melocchi’s gaming machine syndicate about placing machines in his eatery.
When the restaurant owner approced Rep. Gergely, the politician said he had friends among the local police and he could keep them from raiding Chick’s Grill. Another owner claimed they were sceptical about Porky’s machines and approached Gergely for advice. This second business owner claims the office holder recommended they place the machines in their establishment, and called Melocchi a “good guy”.
Neither restaurant owner accepted gaming machines in their location, though Gergely told them it was the only way many people could stay in business. Instead, one or more of those approached eventually went to the FBI with their claims. An investigation was ordered in the latter stages of 2012.
State Police Investigation
In November 2012, the State Police approached Marc Gergely via letter. They pretended to be the wife of a problem gambler who had lost tremendous amounts of money on Melocchi’s machine. Distraught, this fictional wife was looking for advice on how to proceed.
The letter to the representative said, “Mr. Gergely, I believe you’re the only person I can trust. I don’t know if I should call the FBI or State Police.”
Wiretapped Conversation
A wiretapped phone conversation the next day recorded Rep. Gergely calling Ronald Melocchi and tell him he would not turn the letter over to authorities. The politician also told Porky to find out the identity of the problem gambler and stop him from gaming.
In the recorded conversation, Gergely told Melocchi, “I just want to take care of you. She obviously has no idea that we have a connection. You know what I mean?”
Arrest and Conviction of Melocchi
Since then, the State Police arrested and convicted Ronald Melocchi. Melocchi pleaded guilty and received 10 years of probation, a light fine for his conduct. In each case of the illegal video gambling machine ring, Melocchi kept 40% of the revenues and the location owner kept the rest. That was likely to net $400,000 a year in untaxed property.
Charges against Gergely
Gergely faces three felony charges and three misdemeanour charges. He is charged with two counts of corrupt organizations and “dealing in the proceeds of illegal activity”. When the charges became known, Gergely also lost his position as the top Democrat on the State House Labor and Industry Committee.
He remains in office, but his standing in politics is at an all-time low. House Minority Leader Frank Dermody, his fellow Democrat, called the indictment “surprising and disconcerting.”
Prior to the charges, Dermody said he felt Gergely was “a strong voice for improving Pennsylvania’s schools and the lives of working people.”
Political Corruption in Pennsylvania
Corruption in Pennsylvania politics seems rampant these days. Rep. Gergely is the 8th current or former politician to have been indicted on charges since the beginning of 2014.
The highest-profile case is the current “Porngate” scandal involving Pennsylvania’s Attorney General, Kathleen Kane. In August 2015, Kane was arrested and charged with 2 felony counts of felony perjury and one count of obstruction of justice. She has since declined to run for re-election.
