LEXINGTON COUNTY, SC (WIS) -
Law enforcement is one step closer to shutting down a Lexington County video poker operation after an audio recording surfaced in April. The recording is of Lexington town councilman Danny Frazier, outlining his video poker businesses and how he hides them from law enforcement.
WIS obtained the recording from a source who met with Frazier months ago, posing as a businessman interested in opening a sweepstakes business in Lexington County. The source recorded the conversation with Frazier after becoming concerned Lexington County law enforcement purposefully ignored the poker businesses there.
The source turned the entire recording over to state investigators, but provided WIS with an edited version that does not include conversations dealing with possible criminal activity to keep from jeopardizing any prospective law enforcement investigation.
South Carolinians voted to ban video poker more than a decade ago, but investigators tell WIS, the business is back as large as it was before 2000.
New technology has allowed modifications to machines to make them appear as vending machines, but behind the product is software for an array of "games of chance," which are banned in South Carolina. Many of the machines offer up phone minutes for sale, then allow a customer to play the games for cash payouts.
Businesses housing multiple sweepstakes machines have popped up all over the state within the past year. The State Law Enforcement Division has seized more than 750 sweepstakes gaming machines in weekly raids since March. SLED hasn't lost a single case, according to Chief Mark Keel.
It's the same type of business Frazier outlines his involvement in on the recording, "You don't lose; you can't lose," Frazier tells the informant. "Let me tell you what you do, you put one machine out front and put four in the back. That's what we've got people doing."
In the nearly hour-long recording, Frazier tells the informant he doesn't have to tie his own money up in the business and describes the venture as low-risk, high-reward, "Probably go with a 50/50 cut to start with," Frazier said, "To see how you do."
As for location, Frazier offers up advice on that, "You put it in the rich neighborhood, you'll (inaudible) complaining and the lower-to-middle, they love it. They'll spend their whole [expletive] paycheck."
Frazier tells the informant, to stay out of trouble the business must be set up in someone else's name, "We put it in a LLC. Now, the way I had it done is, my buddy--that's the way we do all of them. I mean, I don't put nothing in my name--no, hell no. I can't do that--elected official, blah, blah, blah. [Expletive] them. Be coming to try to arrest me for something, you know, that's the way it works."
Frazier goes on to tell the informant he used a high school friend, Stacy Bell, who Frazier described as having "personal troubles" to front the LLC, "Make the lease to him. It's called Bell Consulting Group."
An Internet search shows Frazier's Bell Consulting Group is located at a gas station at the intersection of 13th Avenue and Augusta Highway in West Columbia. One half is leased to a convenience store and the other side is Gator's One Stop Party Shop where Bell Consulting Group's registered agent, Stacy Bell manages the sweepstakes business.
It's a building with multiple rooms, filled with video gaming machines and an Internet Café. You can't see either gambling device from the outside, but the Gator's Facebook page shows at least 10 machines inside.
The business is raking in thousands of dollars a week, according to Frazier in the recording. "In the last seven days, the take for that store was $3900," Frazier tells the informant. "I'm on a percentage where I got it at 60/40."
We went to Gator's to see what's inside and to find Stacy Bell. We found Bell standing behind a workspace, just inches away from the front door.
"How are you doing, sir?" Bell asked as we entered the business. Once WIS' Jody Barr introduced himself as a reporter with the station, Bell quickly asked us to leave, "Hey---back outside, no comment. I have no comment, thank you." "Are you in business with Danny?," Barr asked. "Sir, I've been very nice," Bell replied as we left the property.
Frazier goes on in the tape to identify the he said could supply and service the machines, "Whenever you get Brett back over here and he'll look and see what kind of machines--what else you want, you know what I mean, he can supply that."
The "Brett" Frazier mentions is Brett Blanks, who is listed as the registered agent for Universal Vending; a Lexington County amusement company Frazier claims is his supplier of the illegal poker machines.
Blanks works out of a warehouse at 441 Burton Road in Lexington. That's where Blanks confronted us while shooting video outside his warehouse last week, Barr: "Are you Brett?" Blanks: "What the [expletive] you got a camera out here for?" Barr: "Are you Brett?" Blanks: "No." Barr: "What's your name?" Blanks: "None of your business." Blanks eventually called Lexington County deputies to the scene to ask us to leave the public right-of-way.
Blanks' company, according to Frazier, could supply the sweepstakes gambling machine quickly.
The informant told Frazier he could have his business ready to install the machines within a few weeks, Informant: "How fast can them [sic] guys get me hooked up?" Frazier: "I can have them up there tomorrow."
We took the recording to Danny Frazier at last week's Lexington Town Council meeting. Frazier admitted he and Stacy Bell were friends, but despite the recording, Frazier said he's got nothing to do with the gambling business.
Barr: "You never told anybody that was an LLC you created to hide a gambling operation with the sweepstakes machines?" Frazier: "Don't recall anything like that." Barr: "If I played it for you, would you be able to recall it then?" Frazier: "Like I said, I don't recall anything like that. You can play what you think you need to play, but I'm telling you, I don't recall anything like that." Barr: "You don't recall that--does that mean it didn't happen?" Frazier: "I said I don't recall that happening."
As for Brett Blanks, the man Frazier identified as his supplier; Barr: "How about Brett Blanks?" Frazier: "Brett Blanks? That's Universal Amusement Company?" Barr: "Yes sir. No business dealings with him?" Frazier: "Just know him. He lives here in Lexington." Barr: "Again, if I had a recording where you tell someone that Brett is the supplier, would you have any recollection of that?" Frazier: "No recollection."
Frazier agreed to listen to our recording after the council meeting. We waited for more than an hour inside council chambers, but after the meeting, Frazier declined to listen, "I'm not going to be disrespectful to you, you haven't been disrespectful to me and I'm going to leave it just like I told you," Frazier said.
Late Wednesday, Frazier released a statement regarding the recording:
"Over the past couple of weeks, there have been media reports suggesting that I may be involved in some questionable business practices. At the request of someone I thought to be a friend seeking advice about getting involved in a new business venture, I met with him. Secretly, and without my knowledge, he taped our entire conversation. During the course of that lengthy conversation, I boasted about friendships and said things that were exaggerated or simply not true, which reflected very poor judgment on my part. I guess we all like to think we are more important or influential that we actually are.
As a result of this, I have spent many sleepless nights and greatly regret my boasting. I do have many friends who are public officials, but I would never ask them, nor would they, do anything improper or illegal on my behalf. I am embarrassed and humbled by what has happened and this has been a life changing experience for me. I apologize to my wife, my children, the Mayor and Council of the Town of Lexington, the citizens of Lexington and my friends for anything I have said that caused them to be embarrassed or disappointed in me.
While nothing I have done is illegal, my error in judgment was a serious one. As I leave today to take a family vacation before school starts, I will use this time to reflect on making sure my priorities are in order and how I can strive to be a better husband, father, and public servant."
Frazier tells the informant on the recording that he's able to continue doing business in Lexington County because of his connections to influential elected officials.
Coming up today on WIS News 10 at 5, we'll show you who Frazier's connected to and what elected officials have taken campaign contributions from Frazier and the businesses he identified as connected to his gambling operation.
Copyright 2012 WIS. All rights reserved.
Lexington town councilman Danny Frazier
