Brandon Steven asks judge to end probation because it blocks federal help for workers

Note: This story has been updated with information from court documents filed by prosecutors.

Wichita businessman Brandon Steven is asking a federal judge to end his probation early so that more than 4,000 employees can potentially receive paychecks through government coronavirus aid.

Steven’s defense attorney filed a motion in U.S. District Court on Wednesday asking that his probation be terminated more than two years early.

The filing states that Steven’s companies are believed to be otherwise eligible to receive federal aid from the CARES Act through the Paycheck Protection Program. He has furloughed 3,941 of his 6,329 employees due to the pandemic and expects to furlough an additional 279 if his businesses miss out on government help.

“If any of his business entities are not eligible for relief due to Mr. Steven’s current status as a federal probationer,” his lawyer, James Hobbs of Kansas City, wrote, “it may cause lasting damage to his businesses, but, most importantly, to his employees.

“The Act is designed to encourage business owners to keep their work force intact during this period of crisis by providing the resources to fund payroll. It is anticipated that all of the furloughed workers will be immediately rehired if the businesses receive the funds through the Paycheck Protection Program, as well as retaining the remainder of his current employees that are still working.”

In their own filing on Friday, prosecutors from U.S. Attorney’s Office said they were opposed to the request.

“The Defendant has not fulfilled the terms of his probation plea agreement, and has not even reached the point where he would eligible to request modification of his supervision pursuant to the plea agreement,” Assistant U.S. Attorney Aaron Smith wrote.

He added that Steven’s furloughed employees are eligible for state unemployment as well as the $600 per week federal unemployment payments under the CARES Act. In addition, he wrote, “it is possible (if not likely)“ that Steven’s businesses are ineligible for the Paycheck Protection Program because the common ownership and more than 6,000 employees “far exceed the 500 employee threshold” for a small business.

“With so many variables and unknowns concerning qualification of Defendant under The Act, terminating the defendant’s sentence less than 1/3 of the way into its term does not satisfy the ends of justice and the impact a criminal conviction imposes for punitive or deterrent purposes,” Smith wrote.

Steven pleaded guilty in June 2019 to one misdemeanor count of accessory after the fact to the unlawful transmission of wagering information. He was sentenced to three years of probation, forfeited more than $1 million and was ordered to perform 200 hours of community service.

The money represented the proceeds from his crime, and he paid it the same day he appeared in court. So far, he has served about 183 hours of community service, according to the filing. His lawyer said that he can’t do the remaining 17 hours until after certain restrictions related to COVID-19 are lifted.

The criminal case was part of a years-long probe by the Federal Bureau of Investigation into illegal gambling in Wichita. Steven admitted in court to hiding handwritten ledgers or other computerized records that detailed gambling credits, earnings and the obligations of a gambling business in an attempt to conceal who was involved in the games.

Steven, 46, is a business partner with one of his brothers, owning health clubs, auto dealerships and other business ventures around the city. He is also a professional gambler who is ranked No. 1 in Kansas with earnings of more than $3 million, according to the Hendon Mob.

“Mr. Steven respectfully suggests that this unprecedented and severe economic downturn, coupled with the fact that he has paid his financial obligations, has had no significant violations of probation, has nearly completed his community service, and has remained gainfully employed, that he is a good candidate for early termination of probation,” his defense attorney wrote. “He is committed to continuing to support and volunteer in the community, as well as retaining the remainder of his current employees that are still working.”

This story was originally published April 9, 2020 at 4:39 PM.