Midlands video poker kingpin Flynn headed to prison, helped nab ex-sheriff Metts

Federal Judge Joe Anderson has sentenced video poker kingpin Larry Flynn to 15 months in federal prison for operating an illegal gambling business, failing to file income taxes and income tax evasion.

Flynn, who ran a video poker machine gambling empire across the state, also must pay $251,000 in restitution to the IRS, according to court documents.

Flynn was caught up in a wide-ranging, yearslong federal investigation into public corruption in Lexington County.

At the sentencing hearing on Tuesday, federal prosecutor Jim May told the judge Flynn provided information to federal investigators that would have helped the government prosecute a criminal case against Metts, had Metts chosen to go to trial.

May did not reveal details of that purported evidence were not made public at Tuesday’s hearing.

However, according to a court filing by Flynn’s attorney, William von Herrman of Conway, Flynn was interviewed by the IRS, the FBI and the U.S. Attorney’s office for two and a half days during the government’s investigation.

“During his debriefing, he provided information concerning the operations of certain businesses and the actions of numerous people who were engaged in nefarious actions within the State of South Carolina,” the filing said.

Last year, Metts pleaded guilty to a federal charge of harboring illegal immigrants, a charge connected to evidence that he took money to let undocumented Mexican workers out of his jail. Metts is serving a one-year prison sentence and is expected to be out in May.

Flynn worked for 15 years as an investigator for the 5th Circuit Solicitor’s Office. In 2010, he lost a Republican primary bid to be Kershaw County sheriff. In 2006, while a Columbia resident, he lost a race to be the Republican nominee for S.C. secretary of state. Flynn was also a member of the State Guard.

In June 2014, Flynn was indicted on federal charges of operating an illegal gambling business and conspiracy to commit money laundering for his operation of the sweepstakes gambling business Magic Minutes.

Flynn could have faced up to 10 years in prison and a maximum fine of $250,000.

Flynn and his Magic Minutes gaming devices have a controversial history in South Carolina.

In recent years, Magic Minutes gaming machines have been seized by local law enforcement, and local judges have issued differing opinions on whether the machines are legal.

According to Flynn and other backers of Magic Minutes machines, the devices allow users to buy phone time and offer a chance to play video poker, slots and keno for chances to win cash. They say the machines are allowed under a loophole in the state’s gambling laws that allows so-called sweepstakes games.

In 2013, Richland County deputies confiscated four Magic Minutes video games in the rural southern part of the county.

Also in 2013, Flynn was arrested by Spartanburg County sheriff’s deputies and charged with possessing illegal gambling machines. At a magistrate’s hearing in Spartanburg County that year, Flynn testified he was the creator and owner of Magic Minutes machines seized by local deputies.

According to a U.S. Attorney’s office news release, Flynn’s Magic Minutes machines were located throughout South Carolina, “generally in gas stations, liquor stores and party shops.”

Gamblers could pay a fee to play poker, black jack, keno and other games of chance – with the ability to cash out their winnings with the owners of the stores where the machines were housed,” the news release said.

“Magic Minutes was a profitable illegal gambling business, in two years making well over a million dollars. However, during this same time, the defendant paid no taxes and had members of his family on Medicaid,” the news release said.

This story was originally published February 24, 2016 at 3:08 PM.