                            I.

            All charges against J. David Smith stem from his

employment with GTECH, a lottery service company located in Rhode

Island.    Smith was the national sales manager for GTECH until


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December 1993, with offices at the Rhode Island headquarters.      He

also maintained a farm and residence in Kentucky.    Duringthe

time periods covered by the indictments, GTECH provided services

to the state lotteries of New Jersey and Kentucky, as well as

other states.

            Steven D'Andrea and Joseph LaPorta are New Jersey

residents who owned and controlled three New Jersey consulting

companies, Benchmark Enterprises, Inc. ("Benchmark"), Sambuca

Consultants ("Sambuca"), and Production Group Incorporated

("PGI").    Luther Roger Wells, Jr., was a Kentucky resident who

owned Bluegrass Industrial ("Bluegrass") and Bluegrass Industrial

Distributors ("BID").    BID ostensibly provided ribbons used to

print lottery tickets.    Karen Smith, the defendant's wife, lived

in Kentucky with her husband.    She owned International Marketing

Concepts, Inc. ("IMC").

            The Federal Bureau of Investigations ("FBI") began

investigating