The federal government is the proud owner of a one-third interest in a highly profitable gambling casino in what is described as the largest seizure ever under racketeering forfeiture laws.
A jury found that $12 million of the $22 million used to build the Bicycle Club in suburban Bell Gardens came from Florida drug deals.Last month, a U.S. district judge in Florida, Norman C. Roettger, ruled that former banker M. Dale Lyon knew the club's financing came from drug money and ordered him to forfeit one-third of his interest. Other partners recently agreed to give up a portion of their interests before a civil hearing began.
The federal government is expected to reap about $500,000 a month in profits for as long as it owns part of the club. Diane Cossin, a spokeswoman for the U.S. Attorney's Office in Miami, said the government would eventually auction its share.
The club was seized under the Racketeer Influenced and Corrupt Organization Act (RICO). Although games of chance are illegal under California law, casino card palaces have flourished under legal interpretations that consider certain card games a matter of skill.