Elton “Butch” Bryan served as Director of the West Virginia Lottery after his appointment by Governor Gaston Caperton in April 1990. In early 1991 the Lottery began an open bidding process for its $2.8 million advertising contract and formed a seven-member evaluation committee that scored presentations and recommended the Arnold Agency. Bryan and the Governor instead selected the Fahlgren Martin Agency, directed Deputy Director Tamara Gunnoe to surrender the evaluation forms to legal counsel, and instructed her to give false testimony to the Lottery Commission on April 24, 1991, claiming the committee had recommended Fahlgren Martin without numerical scores.
When the Department of Administration questioned the absence of quantitative data, Bryan directed Gunnoe to prepare false memoranda of support and continued the misrepresentations until the Purchasing Division approved the contract, which was signed on August 6, 1991, after which the Lottery mailed checks pursuant to its terms.
In 1991 and 1992 Bryan also participated in planning a statewide video lottery expansion, directed the drafting of a Request for Proposals that favored Video Lottery Consultants, supplied VLC with an advance copy of the unpublished RFP, and steered the evaluation process toward VLC, although the contract was never awarded after Bryan received a federal grand jury subpoena in January 1993. During the same period Bryan purchased shares of IGT, GTech, and VLC on the basis of confidential nonpublic information obtained in his capacity as Lottery Director.
In connection with the ensuing investigation Bryan appeared before a federal grand jury and answered questions about who had participated in drafting the video lottery RFP. A federal jury in Charleston, West Virginia convicted Bryan in September 1993 of two counts of mail fraud, one count of wire fraud, one count of securities fraud, and one count of perjury. The district court sentenced Bryan to 51 months in prison, and Bryan appealed to the Fourth Circuit.
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