Comedian Cabang
admits betting,
offers to settle

He forfeits a Kalama Valley
home, a car and $65,000 but
keeps a condo and, for
a time, his freedom

By Linda Hosek
Star-Bulletin

Island comedian Mel Cabang smiled and told a Viagra joke yesterday after he pleaded guilty to felony charges that he ran an illegal sports betting operation from 1991 to 1995.

But the 56-year-old Cabang, who faces up to 35 years in federal prison and a fine of up to $1.5 million, yesterday became serious as he described the consequences of the charges.

"I'm going to jail because I did something wrong," he said outside the federal courthouse.

He admitted in court to running the operation with friends, filing a 1994 tax return for $31,000 instead of his true income of $183,000, paying a car loan with illegal proceeds, using the telephone to place bets and using the mail to move money.

He also agreed to forfeit his Kamaole Street home in Kalama Valley, the car he bought in 1994 with the illegal proceeds and $65,000 in cash confiscated from his home.

Cabang ran the operation from his home and used the car in the operation.

Assistant U.S. Attorney Leslie Osborne Jr. called the plea agreement a "full and fair settlement" of the criminal charges.

He said the government would drop the remaining 70-some counts against Cabang at his Sept. 21 sentencing before U.S. District Judge Helen Gillmor. He also said the government may file a motion for a shorter sentence if Cabang continues to cooperate.

Osborne said Cabang didn't have to forfeit his condo in Las Vegas. He also said the government didn't object to Cabang remaining free on his signature bond until his sentencing.

Michael Green, Cabang's attorney, said his client changed his plea because "the case couldn't be won."

He said the government did a good job and had enough documentation to prevent them from defending the case. "This is the most vigorous prosecution I have ever seen for gambling," he said.

But he also said he and Cabang succeeded in getting the government to dismiss all but five counts and the forfeitures.

Green said he hoped that Cabang would serve only about 18 to 24 months of the possible 35 years -- and hoped it would be in a prison camp.

"Mel has already given up a lot," he said. "His house, his automobile and his savings. He'll have to start all over again."

The government alleged that Cabang ran one of the largest betting operations in the state in which gross profit could exceed $2,000 a day during football and basketball seasons.

Prosecutors said Cabang received "juice," or a percentage of the losing wagers, of 10 to 20 percent.

They also said he used co-conspirators as runners, published a line sheet of upcoming sports events and used code sheets to enable participants to place bets over the telephone without revealing what they were doing.

The indictment also accused Hawaii residents David Blanchard, Raymond Bode and Baron Yamabe of conspiring to run a sports betting operation, and California resident Clinton Victorino of using a telephone to transmit wagers and gambling information.

Osborne said all four would have testified for the government at trial and that they also intended to plead guilty to charges.

He said a sixth defendant, Barbara Kim, was scheduled to go to trial June 16 for allegedly obstructing an Internal Revenue Service investigation by making three false statements to an IRS agent in March 1997.