The lucrative bingo games run by the Annandale Boys Club, which last month survived both a license revocation attempt and a court challenge, once again are under investigation.
Fairfax County Commonwealth's Attorney Robert F. Horan Jr. said this week he is "not satisfied" that the club "is complying with the requirements of the law" governing the games, which raise $1 million a year for the organization.
Horan obtained a search warrant earlier this month to obtain financial records involving the club's purchase of $1,532 worth of closed-circuit television equipment to monitor players at the club's twice-weekly bingo games.
An affidavit filed by Fairfax County police with the county magistrate's office alleges that the club purchased television monitors, a camera and other equipment from People's Electronic Inc., a firm whose president is recorded in State Corporation Commission records as Paul Kelly, the Boys Club executive director.
Virginia's bingo control law requires that all gross receipts from bingo games, except operating costs and prizes, be used for the purposes of the sponsoring organization. The law also forbids a sponsoring organization from compensating a member regarding the sale of bingo supplies or equipment.
"This investigation involves whether any of the proceeds of the bingo operation are going to any officers of the Boys Club," said Horan, the county's chief prosecutor. "It is our position that their accounting records don't adequately document all of their transactions. In many instances, we have no documentation other than the statements made by the officers of the club that a particular transaction took place."
Kelly, who is paid a salary to run the Boys Club, said he knows nothing about the investigation. Kelly said he was "connected" with People's Electronic, but declined further comment.
"This is the first I've heard of any investigation," said Boys Club attorney Grayson P. Hanes. "I thought everything was over with when the County Board of Supervisors voted to renew our license . . . " Hanes said he believes People's Electronic no longer is in business. The firm has not filed annual reports with the State Corporation Commission since 1979, said a commission official.
The supervisors renewed the club's license to operate bingo games on Feb. 22 after securing a promise from club officials that they would tighten financial controls over the operation. The county's Internal Audit Office had released a report criticizing the club's financial record keeping and business dealings.
The auditors, recommending license revocation, said Boys Club President Everett G. Germain "personally profited" from the games by selling the club sporting goods and that Kelly "indirectly benefited" from the sale of concessions. Hanes denied any improper conduct.
Earlier last month, Horan tried to prosecute the club on misdemeanor charges of failing to keep proper records, but a General District Court judge cleared the organization of wrongdoing.