HOUSTON – Investigators have announced charges stemming from a large criminal enterprise operating multiple illegal game rooms across Houston.
The investigation reportedly spanned across at least five years, culminating in a raid Wednesday, when 720 law enforcement officers executed search warrants at more than 40 locations across Houston.
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Nizar Ali, a 61-year-old Pakistani national from Richmond, has been identified as the suspected ringleader in the illegal gaming room scheme with proceeds exceeding $22 million.
Investigators believe Ali used family members to operate dozens of game rooms across the city and laundered money across real estate investments and other high-value assets.
Millions of dollars were seized from accounts involving the criminal enterprise. Authorities also recovered $4.5 million in cash, 2,000 slot machines, 100 Rolex watches and eight guns.
Special Agent in Charge Chad Plantz said that undocumented immigrants were also hired by Ali to serve as armed guards in the game rooms, as well as other positions with varying levels of involvement in the scheme.
31 undocumented immigrants were arrested for involvement, and they have been turned over to ICE officials.
Ali recruited a man who he believed to be a corrupt officer, who he paid more than a half of a million dollars to keep the operation out of the view of authorities.
What he didn’t realize, is that the “corrupt officer” was actually a fully cooperative agent, who was reporting Ali’s movements and schemes to law enforcement the entire time.
More than a dozen of Ali’s associates have been indicted for involvement in the scheme. Two people who are suspected of being involved, 59-year-old Sayed Ali and 35-year-old Stephanie Huerta, remain at large and are considered fugitives.
U.S. Attorney Nicholas J. Ganjei kept details light regarding the undercover agent, adding that he wanted to make sure he was protected as an informant.
During the press conference, Ganjei emphasized the scope of the organized crime, adding that this was among the largest money laundering busts the state has seen in recent memory.
“This is likely the largest Houston-based operation into illegal money laundering on the federal side, at least in recent years, in terms of illegal game rooms,” Ganjei said.
