Agents of the Bureau Of Alcohol, Tobacco, Firearms, And Explosives arrested Don Mudd and Martha Towe Thursday.
ATF Special Agent Kevin Kelm says Mudd burned down VFW Post 1298 August 13, 2003 to destroy evidence of his illegal gambling. "Mudd and Towe operated an illegal gambling business in Warren County from January 1, 2000 to August 13, 2003, and conspired with each other to launder those funds."
The VFW is allowed to conduct "charitable gaming" but the federal indictment against Mudd and Towe says they used video slot machines and pull-tab games for their own benefit.
They are also accused of defrauding an insurance company out of $246,688 from the fire. The indictment also claims Mudd used some of that money to buy a riding lawn mower, a gun safe, and a 42-inch plasma TV.
Click here to view a copy of the actual indictment.
Mudd's attorney, John Caudill, says Mudd is innocent of the charges. Mudd is out on bond, awaiting his federal arraignment, which is set for Nov. 22nd in Bowling Green.