Three individuals, including two residents of El Dorado Hills, have pleaded guilty to operating illegal gambling operations through a network of internet cafes, including several in California, federal officials have announced
According to the U.S. Department of Justice, James Mecham, 57, of Orem, Utah; Kurt Stocks, 49, of El Dorado Hills; and Heidi Edwards, 58, also of El Dorado Hills, admitted to facilitating unlawful gambling activity through their company, SweepsCoach. The business helped set up and operate internet cafes that offered slot machine-style games under the guise of selling internet time or calling cards.
Federal prosecutors said the games allowed users to win redeemable credits for cash payouts. Between 2012 and 2017, the cafes deposited roughly $14 million into bank accounts controlled by the defendants—$11 million of which came from locations in California and Arizona.
The three defendants are scheduled to be sentenced in October and face up to five years in prison and a $250,000 fine.
The case stems from a years-long investigation that first surfaced publicly in 2018, when the IRS Criminal Investigations unit seized more than $380,000 from 16 bank accounts tied to Mecham, Stocks and Edwards. Authorities also seized three vehicles, including two Ford pickup trucks and a Mercedes-Benz SUV.
At that time, no criminal charges had been filed, but the trio were named as potential claimants in a civil asset forfeiture case. Federal officials alleged the seized assets were connected to suspected illegal gambling activities.
SweepsCoach operated as a consulting firm, assisting clients in launching internet sweepstakes cafes across the country. These establishments typically offered access to computer terminals where customers played games resembling slot machines. While they often advertised themselves as selling phone cards or internet access, federal and state agencies increasingly cracked down on their true purpose.
In 2015, the California Supreme Court ruled that sweepstakes-style gaming at internet cafes violated state gambling laws, leading to a wave of enforcement actions that largely shuttered the industry.
Mecham, who served as the managing director of SweepsCoach, frequently appeared in media coverage about the sweepstakes industry. In a 2013 interview, he claimed that each sweepstakes terminal could earn $1,000 to $5,000 monthly and estimated the national industry’s value at up to $15 billion.
The defendants will be sentenced in the U.S. District Court for the Eastern District of California.
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