Knoxville businessman Marcus Hall was sentenced Wednesday to 33 months in federal prison on gambling and money laundering charges.
U.S. District Judge Pamela Reeves noted Hall's "lack of respect for the law" when announcing the sentence because he had served time previously for a drugs felony, but still got involved in a massive illegal gambling operation.
Hall, the owner of clothier Marc Nelson Denim, reached a plea agreement last November to the scheme tied to a major street gambling operation and the laundering millions of dollars.
Hall told 10News at the time he took responsibility for his actions and apologized "for any harm that I have caused."
Hall's defense team wanted a sentence of one year and one day in prison.
In court Wednesday, Hall apologized to his family, children and the Knoxville community.
According to the plea agreement, Hall and co-defendants Clarence McDowell and Maurece D. McDowell owned and operated the daily gambling operation known as "The Numbers" from January 2009 to June 2015. Proceeds resulted in some $20 million being laundered through various business interests, according to government documents.
Hall could have been sentenced to up to 20 years in prison as part of the agreement. He was also made to forfeit $5 million, part of his share of the gambling operation, four vehicles, and more than a dozen pieces of property in the Knoxville area.
Marc Nelson Denim has continued to operate since Hall was charged.
Hall is allowed to remain out on bond until he is told to report to prison. His sentence also includes three years of supervised release.
Assistant U.S. Attorney Jennifer Kolman represented the government, and Richard Gaines is Hall's defense attorney.
How the scheme worked
According to the government, Hall and the McDowells used more than 20 employees as either numbers sellers or numbers runners. They worked at addresses in the 2200 block of McCalla and at 904 Dinwiddie Ave.
Gamblers would go to the addresses, offer their numbers and make bets based on the numbers that would be released in Illinois state lottery midday and evening drawings, according to the plea agreement. They'd get receipts for their bets.
Numbers runners employed by the defendants would deliver the receipts and cash to either a portable trailer at the Dinwiddie address or to Lonsdale Market and Deli.
Every day, Hall or Maurece McDowell was present to take the numbers and bets, according to documents.
Runners and sellers got a quarter of the money collected. Hall and his co-defendants got the rest.
It was a very, very lucrative operation, according to the plea agreement.
Hall must give up $5 million, part of his share of the gambling operation. As part of the agreement he must forfeit case in more than a half-dozen bank accounts, one of which contained $102,024, as well as numerous cash seizures made in the June raid.
Also, Hall is agreeing to forfeit a 2014 Porsche, a 2004 BMW, a 2009 Ford F150 pickup and a 2009 Chrysler.
In addition, he will forfeit more than a dozen pieces of property in the Knoxville area.
For the laundering conviction he faces up to 20 years in prison. For the gambling conviction he faces up to five years in prison.
In May, Hall was awarded the Minority-Owned Business Excellence Award as part of the annual Pinnacle Awards presented by the Chamber. The award recognizes business owners that are at least 51 percent owned by an ethnic minority and have reached "notable growth."
According to the chamber, Hall founded Marc Nelson Denim in 2011. It's a designer clothing and lifestyle brand that specializes in producing small-batch, limited designs. The firm introduced a women's line in 2013.
According to a chamber biography, Hall planned to expand the brand "beyond 25 specialty stores located throughout the Southeast, to several chain and department stores."
Clarence McDowell, owner of Lonsdale Market and president of Palace Package, was charged with being a felon in possession of a weapon and ammunition as a result of the raid. A Tennessee Highway Patrol who was present at the raid alleged he found a weapon in a locked desk drawer at the Lonsdale market, records show.
Clarence McDowell told agents the gun "was owned by his son who was previously employed at the store," records show.
Clarence McDowell was convicted in 1982 in Georgia for "attempt to possess and distribute cocaine." It's illegal for convicted felons to possess weapons.