KNOXVILLE (WATE) – The Knoxville Area Urban League is seeking more than $102,000 and a property on Anderson Road seized from businessman Marcus Hall after he pleaded guilty to running an illegal gambling operation and using his business to launder the profits.
KAUL says it loaned Hall $175,000 in April 2015 as part of an Empowerment Loan with the property at 4435 Anderson Road put up as collateral. The purpose of the loan as stated in his application, was for the manufacturing of denim jeans and the acquisition of additional equipment.Previous story: Knoxville’s Marc Nelson Denim owner pleads guilty in federal court
The United States Attorney’s Office issued a response to the filing saying it agrees that KAUL is due proceeds from the sale of the Anderson Road property, but because it is not a secured lender, should not have access to the more than $102,000 seized from Hall’s bank account.
Court documents say Hall and co-defendants Clarance Lee McDowell and Maurece Damone McDowell owned and ran a daily numbers gambling operation from January 2009 to June 2015 that employed more than 20 people and made around $2,000 a day.Previous story:Knoxville denim business owner agrees to plead guilty in large scale gambling operation
The McDowells own and operate Lonsdale Market and Deli, Lonsdale Payment Center and Triple M Property Management and while those and Hall’s businesses operate as they are intended, officials say they were being used to hide and were supported by the gambling operation.