Chapter 247: Prosecution
Hardy spent two days in France with Elizabeth Taylor before flying back to Los Angeles. He was immediately thrust into a whirlwind of tasks.
The films "Across the World," starring Ava Gardner and Cary Grant, and "Song in the Rain," featuring Judy Garland and Johnny Fontaine, were both ready for release. Hardy decided to launch a grand premiere for "Across the World" before its official debut.
He also had to address issues related to supermarket chains and logistics companies. He reviewed the site selection report for New York supermarkets and, after conducting an on-site inspection with Sam Wharton, found several locations that met his criteria.
The logistics company had successfully recruited numerous drivers and began handling transportation tasks. It had also established several large storage facilities across California, chosen for their logistical convenience.
Despite the busy schedule, Hardy felt things were progressing well. President Johnson's speech tour was gaining momentum, and Hardy saw that Johnson's approval ratings had improved significantly.
However, Hardy was unaware of a brewing challenge.
Dewey's assistant had been investigating the issue of "TV lottery betting," a matter that was straightforward to probe. With a large number of people participating in TV lotteries across the U.S., substantial evidence was quickly gathered.
Dewey reviewed the case file and frowned. "Is this the complete situation?"
"Yes," the assistant confirmed.
"Las Vegas casino lottery draws are broadcast live on TV. Players use proxy investment companies to place bets. Hardy's setup is remarkably clean. Even if we find the proxy investment company, it won't directly implicate Hardy."
"We've examined the law, and it's clear this method operates in a legal gray area. It's not explicitly covered by the lottery ban. The key issue is whether this constitutes casino betting, which hasn't been previously addressed. The only potential issue is phone betting across state lines, which is still debated."
"Convicting Hardy might be difficult," Dewey conceded.
Dewey decided to escalate the case to the Federal Supreme Court, aiming to sue the Hardy Hotel for violating the lottery ban through disguised lottery activities. If successful, the Supreme Court could issue an injunction, causing significant financial losses for Hardy's business. Even if Dewey couldn't secure a conviction, he wanted to make Hardy's life difficult.
The Federal Supreme Court issued a notice to the Hardy Group, which promptly informed Hardy of the prosecution. The charges focused on "violating the lottery ban through disguised lottery activities," specifically TV lottery draws in a casino setting.
Hardy immediately suspected Dewey's involvement. Dewey, who had previously worked in the New York prosecutors' office and harbored resentment due to Hardy's support for Johnson, seemed likely to be behind this.
Despite his concerns, Hardy was relatively untroubled. He had anticipated such challenges and had established a proxy investment company operated by a trusted associate from the Los Angeles Gang, who had been receiving psychiatric treatment. This setup was designed to shield Hardy from direct liability.
Hardy called Ross Baker and John McKenzie from his law firm. After briefing them on the lawsuit and the casino's operations, Hardy expressed his confidence in their handling of the case.
Ross Baker responded, "Given the details, it's clear this won't directly affect Hardy Hotel or you personally. You've prepared well in advance. Our main concern is whether the court will recognize this as a lottery act."
John McKenzie added, "The current ban terms don't clearly cover this situation. It's essentially a casino proxy model, which doesn't violate Nevada's gambling regulations. The only potential issue is whether placing bets across state lines could be deemed problematic."
"This litigation might drag on for a year or two," McKenzie noted.
Hardy smiled, "I don't mind the delay. It gives us time to accrue legal fees. Winning is crucial, though, given the potential financial impact on the casino."
He also requested that the court not suspend the business during the litigation, as it would result in significant losses.
Baker and McKenzie assured him they would vigorously address the lawsuit.
After their departure, Hardy contacted the old godfather, a major shareholder in the casino. The godfather, with his extensive connections, promised to use his influence in the judiciary to support Hardy.
"Good to know we have additional support," Hardy said.
Hardy then reached out to Giannini, a major shareholder in Hardy Hotel. Giannini, while concerned about the impact on the business, agreed to contact a judge he knew at the Federal Supreme Court for additional assistance.
With support from both the godfather and Giannini, Hardy felt more confident. Despite his frustration over Dewey's actions, he decided to enlist Henry's help.
Henry, now a proficient head of the intelligence department at HD Security, was briefed by Hardy. He was tasked with investigating the instigators behind the prosecution, identifying key individuals involved, and gathering incriminating evidence on Dewey and his associates.
Henry understood the assignment and began his work.
---
The lawsuit against the Hardy Group made headlines across major newspapers:
**The New York Times:**
"New York State Prosecutors Sue Hardy Group for Illegal Lottery Business; Hardy Group Receives Federal Supreme Court Subpoena."
**Los Angeles Times:**
"Will Hardy Group's CEO Face Jail Time?"
**Global Times:**
"Hardy Group Subpoenaed; President Andy Expresses Confidence in Outcome."