Larry, "L.W.", Flynn, 39, of Richland County, was charged by a Federal Grand Jury with Operation of an Illegal Gambling Business and Conspiracy to Commit Money Laundering.
The charges stem from Flynn's operation of the gambling business "Magic Minutes" which was a Carolina Forest company.
Magic Minutes was a company in Carolina Forest that sold long-distance calling cards and offered buyers the chance to win cash prizes after playing casino games. Those machines were ruled illegal by Spartanburg County in 2012.
Flynn was a longtime investigator for Kershaw County prosecutors and once ran for sheriff there.
The maximum penalty Flynn could receive is 10 years in prison and a maximum fine of $250,000.
The case is a part of an on-going investigation by agents of the IRS Criminal Investigations, FBI, Homeland Security, SLED and the South Carolina Attorney General's Office and is assigned to Assistant United States Attorneys Jim May and Jay Richardson of the Columbia office for prosecution.
The Associated Press contributed to this article.