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Business owner pleads guilty to gambling

by KAYE THORNBRUGH
Staff Writer | September 21, 2020 1:00 AM

A local business owner is on probation for two years after pleading guilty to charges stemming from an undercover investigation that began four years ago.

Paul M. Banducci, 32, of Post Falls, pleaded guilty last month to two counts of gambling, as well as compounding a misdemeanor, public nuisance and disturbing the peace, all misdemeanors. Police said the activities occurred between mid-July 2015 and late March 2017.

Banducci and his wife, Mary, have owned Bulldog Pipe & Cigar, located in the Silver Lake Mall, since 2014. The business expanded into a second suite in October 2015, called the Bulldog Lounge.

Police received a tip in August 2016 regarding Bulldog Pipe & Cigar selling liquor while only licensed for the sale of beer and wine, according to court documents. At the time, the business’s website reportedly showed a photo of Banducci holding a bottle of Jameson liquor and another showing a bartender holding a bottle of whiskey.

Idaho State Police planned an operation in which an undercover detective would be sent to gather information about unlawful liquor sales.

Banducci gave the undercover detective a tour of the Bulldog Lounge, which included personal humidor lockers and a rear “speakeasy” door for patrons who buy a membership to the lounge. He told the detective that members could bring in their own liquor, though he noted “that’s not on the sheet because it’s kind of a gray area,” according to court documents.

“You do your thing, and for all I know, you got apple juice in your glass,” Banducci reportedly said.

The detective said Banducci described the situation as “like the first rule of Fight Club,” in that it should not be discussed openly.

When asked if he planned to get a liquor license, Banducci reportedly told the detective no, unless someone was willing to give him “a quarter of a million bucks.”

Court documents said Banducci also mentioned there was sometimes a poker night at the lounge, with a typical buy-in between $5 and $50. He reportedly said he typically only shared information about games with trusted members because “that’s less of a gray area” and he did not want to get caught coordinating poker games.

The undercover investigation continued through March 2017.

In October 2016, the detective paid for membership to the lounge. At that time, ISP assigned a second undercover detective to investigate operations at Bulldog Pipe & Cigar, according to court documents.

The detectives reportedly observed five empty liquor bottles in the back room of the business. A bartender who identified himself as CJ provided them with glasses and ice; in the back room, the detectives then reportedly prepared alcoholic beverages, which they feigned drinking.

The first detective reportedly attended a poker game at the lounge the evening of Jan. 20, 2017. The detective brought a bottle of whiskey to the game and saw bottles of liquor in lockers belonging to other members, according to court documents. Banducci dealt the first round of the game.

During the evening, the detective reportedly observed two players put their buy-in money on their tabs.

In February 2017, Banducci told the detective in a recorded phone conversation that another game was coming up.

Court documents said the detective heard a conversation in March 2017 between Banducci and an unidentified person in the lounge about serving liquor.

The detective said Banducci used expletives when he told the person he had to pick his battles with the government and couldn’t risk fines and his license being taken, according to court documents.

Later that month, Idaho State Police Detective Timothy Snell reportedly walked past the front of the Bulldog Pipe & Cigar and observed patrons surrounding a card table with poker chips and cards on it.

Police obtained and executed a search warrant for Bulldog Pipe & Cigar on March 21, 2017.

Numerous liquor bottles were reportedly seized during the search, along with credit card receipts, bank statements, membership records and other business documents. A U.S. Secret Service agent forensically imaged laptops seized by police, according to court documents.

No charges were filed until January 2020. Banducci had no previous criminal record.

Banducci was initially charged with two counts of racketeering and one count of money laundering but accepted a plea agreement.

Banducci’s attorney, Michael Palmer, said in court that Banducci “was not running a casino-style establishment.”

“He had members of law enforcement, attorneys, entrepreneurs,” Palmer said. “Nobody said anything.”

In addition to two years of unsupervised probation, a judge sentenced Banducci to serve nine days in jail, as well as complete 80 hours of community service through the Sheriff’s Labor Program. He was also ordered to pay $2,500 in restitution and court fees.