Is Skimming at Nazareth Vig Under Grand Jury Scrutiny?

A little over a year ago, as first reported on this blog, liquor control enforcement officers with the Pennsylvania State Police descended upon three Nazareth area social clubs simultaneously in a raid on illegal gambling. They seized cash and poker machines at the Vigilance Hose and two other social clubs. These raids are almost an annual rite. Clubs get busted, and are back in business the next week. But after last year's raid, I've seen something that's very unusual. Several individuals from the Vig have been spotted at the courthouse on Grand Jury days. Rumors are swirling that charges are expected soon against Nazareth Mayor Carl Strye.

I've told you before that poker machines are illegal in Pennsylvania if they offer payouts to the customers using them. Small games of chance are permitted under strictly regulated circumstances. Although often regarded as a victimless offense, gambling addicts will spend their entire paychecks on a poker machine. Those machines are usually provided by someone with ties to organized crime. Also, unlike a strictly regulated casino, some social clubs will rig their machines to suck money away from some patrons while steering cash to others. Perhaps the biggest problem is skimming. Machine operators often get quite wealthy by pocketing a large percentage of the money used for gambling.

Along with the gambling, drug activity exists at some of these clubs. SGT Michael Carroll, who heads the Pennsylvania State Police's Liquor Control Enforcement Bureau in Allentown, told me last year that he had no reason to believe that it was greater in social clubs than in regular bars, but I've been told that illegal drugs are prevalent in many local social clubs.

In small boroughs and townships, many elected officials are also machine operators or officers in these social clubs. In Nazareth, for example, Council member Larry Stoudt tended bar at the local American Legion, and pressured Nazareth police to run the license plate of a suspected informant. He was charged with interfering with a state police election, and was later placed on ARD, a special program for first offenders.

Last year, he was easily re-elected.

Until he was elected Mayor in 2013, Carl Strye was President of Nazareth Vigilance Hose Co, one of the social clubs hit in last year's raid. He was President during seven previous raids. At the time of the most recent, agents followed one steward to his home, where they seized more money.

How can the police be expected to trust a government official who was the responsible officer for an outfit that was cited seven times before last year's raid? Doesn't this place the fox in the hen house?

Borough police have little to do with gambling. They rely on PSP. But they do have jurisdiction over Crimes Code violations. That would include skimming,which is theft, and drug violations.

The influence of social clubs on local government is by no means limited to Nazareth. Most of these social clubs are headed by people who are either connected to or are part of local government. Former Upper Nazareth Supervisor Bobby Recker, for example, was heavily involved in the East lawn Social Club, which for years was spared from raids.

After that raid, the social clubs got together and were able to out the undercover officer responsible. They made sure the identity of this person was disclosed at a Super Bowl Party held at Holy Family. But the fun was just beginning.

Officers at the Vig complained the club had far less money than it should, and made those concerns known to Nazareth police and the District Attorney's office.

Since that time, I have seen these fellows and other Nazareth residents at the courthouse on Grand Jury days. I exchanged several emails with Carl Strye, and although I won't quote from his private emails, he has vigorously denied any wrongdoing. He did say he was looking forward to an appearance before the Grand Jury, which tells me I was not seeing things.

In the meantime, rumors have intensified that the Investigating Grand Jury has uncovered evidence of skimming at the Vig. Whether a skimmer has been identified, however, is unknown. I decided to reach out to Strye again. He responded quickly, as is his habit, but only said, "I have no comment."

I questioned DA John Morganelli about this as well, and received a terse "No Comment" when I asked if the Grand Jury is investigating possible skimming at the Vig. He explained he is unable to discuss Grand Jury proceedings.