Techme101.com

A 48-year-old man from Olympia was sentenced on Thursday (September 11), in a US District Court in Tacoma to 18 months in prison for wire fraud connected to a large embezzlement scheme that supported his gambling addiction, according to Acting US Attorney Teal Luthy Miller.
Matthew Randall Ping admitted guilt in June 2025 to wire fraud and to filing a false tax return. Prosecutors said he stole nearly $900,000 from his former employer, the State of Washington, and spent much of it at casinos.
Olympia suspect’s ‘severe’ gambling addiction drove crime
During the sentencing, US District Judge Tiffany M. Cartwright pointed out how central gambling was to the crime. “Your crime was very serious but was driven by severe addiction…. Gambling addiction can destroy the life of someone who is otherwise an upstanding citizen,” Judge Cartwright said.

Former Washington state employee sentenced to prison for embezzling nearly $900,000 – Manipulated credit card payment processing system and expense review system to steal from state agency https://t.co/dBQrjpMVNa
— WDWAnews (@WDWAnews) September 11, 2025

Assistant U.S. Attorney Dane Westermeyer, who had asked the court to impose a 33-month sentence, was direct about how Ping used the stolen money. “He used this stolen taxpayer money to fuel his gambling habit, fund at least six trips to Las Vegas, pay off a luxury vehicle loan, and otherwise support his lifestyle,” Westermeyer wrote in his sentencing memo.
He added, “And, perhaps not surprisingly, he failed to report any of the income from his theft on his federal tax returns, which resulted in a tax loss of nearly $250,000.”
In court, Ping admitted that he had tried to get help for his gambling problem but said there were few resources available. Judge Cartwright encouraged him to push for better services and stronger regulations to help others dealing with the same addiction once he is out of prison.
Court records show that Ping started working at the Washington State Office of Administrative Hearings in 2009. By 2017 he had become a Management Analyst and the department’s credit card custodian. Between 2019 and 2023, he set up fake vendor accounts that allowed him to divert $860,756 into his own accounts, and he also made $17,359 in personal purchases at Verizon and Walmart. Investigators said he carried out a total of 210 fraudulent transactions.
Largest insider embezzlement in Washington in 15 years
Acting US Attorney Miller described the theft as both historic in scale and damaging to the public’s trust. “This theft was not just the largest insider embezzlement from Washington State in the last 15 years, it also undermines trust in our state financial safeguards,” Miller said. “Mr. Ping not only cheated state taxpayers, he cheated on his federal taxes as well by failing to pay the income taxes he owed on ill-gotten gain.”
The scheme was first discovered by the Washington State Auditor’s Office, and Ping resigned in 2023 after it came to light. He has agreed to pay back $1,118,362 in restitution to the state, its insurance company, and the IRS.
After completing his 18-month prison term, Ping will spend three years on supervised release.
Featured image: Canva
The post Olympia man sentenced for $900K embezzlement fueling gambling addiction appeared first on ReadWrite.

The Social Gaming Leadership Alliance (SGLA) has shared a statement of its disappointment in the passing of the California sweepstakes ban bill.
The SGLA has criticized the decision of the California Assembly Governmental Organization Committee to pass Assembly Bill 831 (AB 831), which would see online social games with sweepstakes promotions banned in California.
In a public statement, the SGLA leadership estimated that the bill would remove more than $1 billion in direct and indirect economic activity across the state of California, potentially depriving the state government of hundreds of millions of dollars in revenue each year.
“Today’s hearing exposed the committee’s complete disregard for facts, economic reality, and the voices of tens of thousands of Californians, all to hand monopoly power to tribes that have already invested hundreds of millions of dollars in Las Vegas and California coastal properties,” said Jeff Duncan, Executive Director of SGLA and former Congressman. “All the while, passage of this bill would deny our tribal partners the very opportunities the proponents themselves have used. If this damaging bill moves through the Assembly, we hope Gov. Newsom will see it for the poor policy it is and veto AB 831.
“As the committee heard today, the entire premise of this bill is false. The proponents have consistently said that online sweepstakes are illegal throughout this process. If that were true, then what is the need for AB831?
“The reality is the proponents know this industry is legal. The bill isn’t about clarifying the law. It’s about changing the law to give a few wealthy tribes exclusivity while shutting down a legal industry.”
The opposition to the sweepstakes bill
The SGLA argue that more than 16,000 Californians are opposed to the bill, having written nearly 33,000 emails an made nearly 4,500 calls to legislators trying to block it. Several Californian tribes have also been vocal in their opposition to the bill, while groups like Californians United for a Responsible Budget have also sprung up to block the bill.
The committee has also heard complaints about the “desperation” of AB 831’s supporters, with the SGLA claiming people have received threats, with proponents saying that “toe tags will be helpful to identify our next of kin.”
Rather than the sweepstakes ban, the SGLA is advocating for “a modern regulatory framework that ensures robust consumer protections, supports tribal self-determination, preserves choice for players, and harnesses the economic potential of online social games to strengthen California’s economy.”
Featured image: SGLA
The post SGLA argues California sweepstakes ban shows ‘complete disregard for facts’ appeared first on ReadWrite.

A newly unsealed affidavit is giving more details about the big illegal gambling investigation that ended with the arrest of suspended Osceola County Sheriff Marcos Lopez.
In the affidavit, which was filed in Lake County Circuit Court and seen by ReadWrite, investigators allege that beginning in 2019, “a multi-agency law enforcement investigation uncovered the presence of a criminal organization operating an illegal gambling enterprise throughout Central Florida, particularly in Lake and Osceola Counties.” Authorities say the group brought in more than $21.6 million in illegal profits.
Affidavit shows Marcos Lopez played ‘a multifaced role’ in the illegal enterprise
Florida sheriff Marcos Lopez was arrested after casino raids exposed illegal gambling operation. Credit: Homeland Security Tampa
Investigators believe the operation was run by Orlando businessman Krishna Deokaran, who they say handled the money side and overall logistics. Others were accused of helping with tasks like bookkeeping and laundering the money.
Several other people were charged in the case, including businesswoman Ying “Kate” Zhang, Sharon Fedrick, Sheldon Wetherholt, and Carol Cote. Sheriff Lopez’s wife, Robin Lynn Severance Lopez, was also arrested on a racketeering charge connected to the gambling ring, though she has since bonded out of jail.
Lopez, who was elected Osceola County Sheriff in 2021, is accused of playing what investigators called “a multifaceted role in the expansion and protection of the enterprise.” The affidavit states Lopez “pledged to use his anticipated position as the elected Osceola County Sheriff to shield the enterprise from law enforcement scrutiny.” He’s also accused of bringing in new members, arranging leases for other gambling spots, and even picking up cash from one of the clubs himself.
One place investigators focused on was the Eclipse Social Club in Kissimmee. A Crime Line tip in 2022 claimed it was running as a casino. Investigators later discovered a TikTok page advertising the club as “a casino with a lot, fish tables and computer games with daily promotions.”
Robin Lynn Severance Lopez, estranged wife of suspended Osceola County Sheriff Marcos Lopez, appeared in court via video. Credit: Fox 35 Orlando
Undercover agents confirmed in July 2023 that the business had dozens of Las Vegas-style slot machines and fish table games. They saw customers getting paid in cash even though signs said the machines were just for amusement.
The affidavit says agents ran several undercover operations at gambling rooms around Central Florida. They played the machines, got payout vouchers, and exchanged them for cash. In one instance, an agent put $20 into a slot machine and cashed out with $26.40.
Money laundering claims
The investigation also uncovered complex money laundering tied to the gambling network. In January 2024, investigators say Deokaran asked a cooperating source to help move millions of dollars in gambling profits.
According to the affidavit, he said, “it’s not like we’re going to stop here” and added, “every month, every two months, I got a million or 500 thousand.” Deokaran also explained that he would create fake invoices to disguise the funds, saying, “I create an invoice and email it to you.”
Former Osceola Sheriff Marcos Lopez was released on bond after facing racketeering charges. Credit: WESH via X
On January 25, 2024, Homeland Security Investigations agents carried out an undercover cash pickup in Orlando. Investigators say Deokaran showed up in a white Tesla, popped the trunk, and revealed a suitcase packed with money. “You got 1.5 in here,” he told the agent, referring to $1.5 million. Bank records later showed that nearly $1.5 million was deposited into a secret government account.
The court document states Deokaran boasted of once making “1 million dollars a week” from his gambling rooms. He allegedly told the undercover agent that he set aside $50 and $100 bills straight from his machines. He even offered to provide protection for future deals by flashing a badge that identified him as a “Special Deputy” with the Osceola County Sheriff’s Office.
In 2024, more undercover operations recorded additional cash drops. In May, agents say they received $913,500 stuffed in a duffel bag. Deokaran also allegedly mentioned that he and an associate had put money into a marijuana grow operation in Ohio, describing a warehouse that had recently harvested “approximately 500 lbs. of marijuana” that he intended to fly to Florida for resale.
When agents searched Deokaran’s Orlando home in August 2024, they said they found more than $309,000 in cash along with slot machine keys, gaming modules, and an Osceola County Sheriff’s badge. Investigators also reported seizing documents that tied Deokaran to the different casinos under investigation.
Lopez and associates charged under RICO
The affidavit paints Marcos Lopez as both a protector and a beneficiary of the scheme. Prosecutors allege that after he became sheriff, he personally collected gambling proceeds in cash from the Eclipse Social Club. They say his role, combined with the money laundering and gambling operations, forms the foundation of the racketeering charges against everyone involved.
Lopez and the others are now facing racketeering and conspiracy charges under Florida’s RICO statute. The case is being handled by the Florida Attorney General’s Office, with the Florida Department of Law Enforcement and Homeland Security Investigations leading the probe.
Featured image: Lake County Florida Sheriff’s Office
The post Affidavit reveals details in $21M illegal gambling case involving ex-Osceola sheriff Marcos Lopez appeared first on ReadWrite.