Investigators have arrested executives in a North Texas technological company for their role in a video sweepstakes scheme.

Senior executives with HEST Technologies Inc. based out of Haltom City were arrested Friday, during a joint operation led by the Texas Attorney General’s Office, the Anderson County Criminal District Attorney’s Office, and the Tarrant County Criminal District Attorney’s Office.

The defendants face felony gambling, money laundering, and organized criminal activity charges.

HEST’s promotional materials claim that the business creates “sweepstakes promotional systems,” but the State alleges that their “sweepstakes” systems constitute illegal gambling devices.

Due to this, the defendants face organized criminal activity charges for conspiring to violate state laws that prohibit gambling.

According to the Attorney General’s office, video sweepstakes promoters claim to sell a lawful service, such as time at an internet café, that is used to induce gamblers to participate in an illegal electronic sweepstakes.

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