Saturday, November 11, 2006

The commander of Veterans of Foreign Wars post 1298 has been indicted on an
arson charge for allegedly setting a fire in August that destroyed the
Bowling Green building where the group met. Donald Mudd also was indicted on
gambling charges, according to a news release issued by the Kentucky Office
of Charitable Gaming. Martha Towe, who allegedly helped Mudd operate an
illegal gambling business at the VFW hall, also was indicted on
gambling-related charges. According to the federal indictment, Mudd and Towe
allegedly operated an illegal gambling business from 2000 to 2003, and that
they conspired with each other to launder funds derived from the illegal
business. Mudd and Towe, according to the indictment, hosted bingo games and
sold pull tabs at the VFW post, and that they allegedly conspired to conceal
the money generated. In addition, the indictment claims Mudd owned and
operated illegal video slot machines at the VFW post. Mudd also is charged
with devising a scheme to defraud an insurance company by providing false
information about the fire. Westport Insurance Corp. issued a check for
$246,688 to the VFW post after the fire, but the indictment alleges that
Mudd diverted the money for his personal benefit.