Press Release  Two Indicted in Connection with Running an Illegal Sports Betting, Loansharking and Money Laundering Operation

Springfield — Two Springfield men have been indicted in connection with running an illegal sports betting, loansharking and money laundering operation in Western Massachusetts, and allegedly preying on compulsive gamblers by collecting debts with exorbitant interest rates, Attorney General Maura Healey announced today.

Rex Cunningham, age 65, and Brian Hoyle, age 59, both of Springfield, were indicted today by a Statewide County Grand Jury on charges of Money Laundering (one count), Organizing and Promoting Illegal Gaming (one count), Registering Bets (one count), Using the Telephone to Register Bets (one count), Delivery to and from a Person Engaged in Illegal Gaming (one count), Conspiracy to Register Bets (one count), Loansharking (two counts) and Witness Intimidation (one count).

“This illegal sports betting operation took advantage of compulsive gamblers by charging extremely high interest rates and aggressively pursuing debts in order to turn a profit,” said AG Healey. “These loansharking enterprises are illegal in Massachusetts and our office will continue to work with our state partners to investigate and prosecute those who commit these crimes in an attempt to circumvent state gambling laws.”

“The Massachusetts State Police have historically been vigilant in combatting illegal gambling throughout the state, and we continue to work with our partners at other law enforcement agencies to interdict organized criminal enterprises,” said State Police Col. Richard McKeon. “The charges as alleged by our evidence show that these defendants targeted people vulnerable to gambling addictions, profited through usurious interest charged on their debts, and laundered the profits in attempt to avoid detection.”

“I would like to thank Massachusetts Attorney General Maura Healey and the Massachusetts State Police for their partnership in bringing these cases forward,” said Hampden District Attorney Anthony D. Gulluni. “These indictments reflect the collaborative and dedicated efforts by law enforcement to aggressively pursue those who wish to profit by victimization and violence."

Cunningham and Hoyle will be arraigned in Hampden Superior Court at a later date.

These charges are the result of a joint investigation conducted by the AG’s Gaming Enforcement Division, State Police assigned to the AG’s Gaming Enforcement Unit and the State Police Special Service Section.

Authorities allege that Cunningham and Hoyle ran an organized online illegal sports betting, loansharking and money laundering operation in Western Massachusetts. Cunningham and Hoyle allegedly ran the operation out of a bar, where they collected and accepted illegal bets from dozens of bettors. They allegedly arranged the bets through a sports betting website, which they managed from the bar. They are also alleged to have conducted secret meetings on the illegal sports betting operation in the parking lot of the bar.

They allegedly preyed on compulsive gamblers by collecting debts for the operation at exorbitant interest rates of between 150 to 250 percent per year. The two are alleged to have aggressively pursued money from gamblers on any and all debts they were owed. Authorities allege that at the time of the investigation the defendants were owed thousands of dollars by bettors.

All of these charges are allegations and defendants are presumed innocent until proven guilty.

The case is being prosecuted by Assistant Attorney General Pat Hanley, Chief of the AG’s Gaming Enforcement Division, Assistant Attorneys General Gina Masotta, of AG Healey’s Gaming Enforcement Division and Amy Karangekis, Deputy Chief/Managing Attorney of AG Healey’s Western Mass Regional Office and Special Assistant Attorney General and Hampden County Assistant District Attorney Robert Schmidt. The case was investigated by the State Police Special Service Section, the State Police Gaming Enforcement Division assigned to the AG’s Office and investigators assigned to the AG’s Gaming Enforcement Division, with assistance from the Hampden County District Attorney’s Office, the Northwestern District Attorney’s Office, the United States Attorney’s Office, the Federal Bureau of Investigation (FBI), the Alcohol Beverages Control Commission, the AG’s Digital Evidence Lab, the State Police Crime Scene Services Section, the State Police Technical Surveillance Unit and the Massachusetts Gaming Commission’s Investigations and Enforcement Bureau.

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