Tomblin Friend Ferrel’s Lottery License Renewed

By westvirginia on September 30, 2009

Despite being indicted this past June on various racketeering and bribery charges in relation to his video lottery business, former state Delegate Joe C. Ferrel will get to keep his video lottery license.

From the Charleston Gazette:

On Tuesday (Sept. 29, 2009), the Lottery Commission voted to renew 36 of the 37 limited video lottery operators’ licenses for another year, including the Logan-based company operated by former state Delegate Joe C. Ferrell.

The renewals go into effect Thursday.

Commissioners opted to renew Southern Amusement‘s license Tuesday, citing a pretrial restraining order that requires all assets of the company to be preserved. The same order was cited in July, when the commission opted not to revoke Southern Amusement’s license to distribute 675 video lottery machines to bars and clubs in southern and central West Virginia, Lottery counsel John Melton noted Tuesday.

Video lottery machine distributor to lose license – News – The Charleston Gazette – West Virginia News and Sports

Of course, we’ve been following the Ferrel case, due to his long friendship with state Senate President Earl Ray Tomblin. Over on our sister website, The West Virginia Examiner, we showed the connections between these two individuals. The story is posted here in full:

Since West Virginia is a small state, it’s easy to end up connected in some way to someone who has broken the law. However, for one recently indicted former state delegate and one current state senate president, the connections are more than plenty.

Take the interesting case of one Joe Cleveland Ferrell. Ferrell, 62, of Chapmanville, W.Va., was indicted June 8, 2009, on 48 counts by United States Attorney Charles T. Miller in Huntington, W.Va.

Ferrell’s Gamble

The charges against Ferrell are very serious. These include:

You can read the full indictment by clicking here.

The indictment is aimed at Ferrell and his company, Southern Amusement Co., Inc., of Logan, W.Va. Southern Amusement is licensed by the West Virginia Lottery Commission under the Limited Video Lottery Act to operate video lottery machines in the W.Va.

According to a story published June 18, 2009, by The Charleston Gazette, Southern Amusement has 640 video lottery terminals at 128 locations in the state.

A History of Corruption

Ferrell has a prior history in regards to corruption charges. Much of this information was researched by Dr. Allen H. Loughry II in his book, “Don’t Buy Another Vote, I Won’t Pay for a Landslide: The Sordid and Continuing History of Political Corruption in West Virginia.” The book can be purchased by going to www.reformwv.com.

Ferrell represented District 19 in the West Virginia House of Delegates from 1983-1984, then from 1987-1992. However, in 1992 Ferrell pleaded guilty to vote buying. Over $58,000 was spent to buy his house seat between 1986-1992. This included $11,500 to former Logan County Circuit Judge Ned Grubb, who was convicted in federal court for accepting illegal campaign cash.

Ferrell, as part of his plea, promised to never run for office again. The promise was quickly broken when Ferrell returned to his house seat, serving from 2000-2006. He returned just in time to do his friend, Senate President Earl Ray Tomblin, a favor.

The Tomblin’s: A Family Affair

Earl Ray Tomblin represents Logan County in the West Virginia State Senate, holding that seat since 1980. He has served as Senate President since 1995, also making him the state’s Lieutenant Governor.

Oddly enough, Tomblin was once the owner of Southern Amusement until 1995. According to the West Virginia Secretary of State‘s office, the business was started in 1966 and was incorporated by Tomblin’s mother, Freda Tomblin, along with Frank Tomblin. Freda also has a puppy farm and a kennel in her name. These dogs are raised for racing at the state’s racetracks.

Tomblin’s own father, former Logan County Sheriff Earl Tomblin, was a member of the “Logan Five;” five elected officials convicted of election rigging in the 1970s. Later, in 1992, Earl pleaded guilty to bribery related to the election for former Logan County Sheriff Oval Adams.

In 2001, prior the establishment of state-regulated video lottery, there were gray machines. These machines were supposed to be for entertainment purposes only and not allowed to give payouts. However, payouts were often given under the table and off the books. An effort was led by the senior Tomblin to legalize the machines under former Gov. Gaston Caperton, only to fail due to investigations into the West Virginia Lottery Commission at the time.

Southern Amusement: From Tomblin to Ferrell

After this, in 1995, Tomblin was under pressure due to his ownership of Southern Amusement. At the time Tomblin was against state-regulated video lottery. He was criticized at the time for killing off a riverboat gambling initiative, and also allowing an amendment through that directly benefited his family’s greyhound breeding business. He therefore sold the company to Ferrell, a family friend, despite Ferrell having declared bankruptcy, owing over $31 million in debts.

In 2001, the West Virginia State Police confiscated over 30 of Southern Amusement’s gray machines. The Logan County Prosecuting Attorney refused to prosecute, and in September 2001, Ferrell was one of the first to receive a video lottery license.

In 2005, federal authorities issued a search warrant on Southern Amusement in relation to the most recent indictment. In 2007, Ferrell put all outstanding stocks in the name of his wife, Vicki Ferrell. Vicki is also named as president of Southern Amusement. Mitzi Ferrell Brammer is listed as the secretary/treasurer.

Conclusion

The connections between Tomblin and Ferrell are troubling, considering the amount of corruption in Tomblin’s own family. If U.S. Sen. Robert Byrd resigns and Gov. Joe Manchin appoints himself to serve in Byrd’s place, Tomblin would become Governor of West Virginia. One would hope that there are no other connections linking Tomblin to Logan County corruption.