The following examples of Gaming Fraud investigations are excerpts from public record documents on file in the court records in the judicial district in which the cases were prosecuted.
Leader of Illegal Gambling and Money Laundering Operation Sentenced to Prison
On June 23, 2010 in Houston, Texas, Thanh "Tommy" Bui was sentenced to 12 months and a day in prison and ordered to pay a $114,000 fine for conspiracy to launder funds and operate an illegal gaming business. According to court documents, Bui operated at least six illegal game rooms in Galveston and Harris counties: the Lucky 777, the Amusement Palace, the Bay Area, the O.C., the Coffee Shop and the Hideaway. Some of these establishments contained approximately 50 electronic gaming machines, commonly known as “8-liners.” The FBI and the Internal Revenue Service (IRS) were tipped off to the illegal gaming operation based on robberies and other criminal conduct occurring at the game rooms. Bui concealed the operation by placing business assets and assets purchased with proceeds from the illegal business in the name of third persons, destroying business records each day, paying employees in cash and structuring the purchase of assets with business profits in a manner to avoid financial transaction reporting requirements mandated by federal law. These assets included a shopping center, residences and luxury automobiles. The game rooms generated more than $1 million a year and almost $4 million during the course of the conspiracy. In November 2008, federal search warrants were executed on several of the illegal game rooms and area residences with more than $70,000 in cash seized as well as a 2007 Mercedes Benz S550 which was purchased with proceeds of the illegal operation in a structured fashion to avoid the financial transaction reporting requirements. Those assets have been forfeited to the United States.
Former Director and CEO of Beton Sports Sentenced
On January 8, 2010, in St. Louis, Mo., David Carruthers was sentenced to 33 months in prison for racketeering in connection with his illegal online offshore sports wagering business. According to court documents, Carruthers, a citizen of the United Kingdom, was hired as the CEO of BetonSports based in Costa Rica in 2000. In July 2004, David Carruthers began serving as a Director of BetonSports, PLC. In April 2009, Carruthers pleaded guilty to racketeering conspiracy that caused a loss of between $7 and $20 million to more than 250 victims.
BetonSports Founder Sentenced on Federal Racketeering Charges; Agrees to Forfeit of Over $43 Million
On November 2, 2009, in St. Louis, Mo., Gary Stephen Kaplan, founder of BetonSports, a large illegal offshore sports wagering business, was sentenced to 51 months in prison on multiple federal charges. Pursuant to a complex plea agreement, on August 14, 2009, Kaplan pleaded guilty to charges of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) statute, conspiring to violate the Wire Wager Act and violating the Wire Wager Act. As part of the plea, Kaplan forfeited $43,650,000 in criminal proceeds. An additional amount of approximately $7 million has been forfeited in related proceedings, bringing the total forfeiture in this case to over $50 million. According to court records, Kaplan admitted that beginning in the mid to late 1990's, he set up business entities offshore to provide sportsbook services to U.S. residents through Internet websites and toll-free telephone numbers. BetonSports was highly successful and attracted a large number of U.S. customers. In mid-2004, Kaplan made a successful public offering of the stock of BetonSports on the London Alternative Investment Market that netted him over $100,000,000. Those funds eventually found their way into various Isle of Jersey trusts which invested the funds in Swiss bank accounts.
Fiscal Year 2011 - Gaming Fraud Investigations
Fiscal Year 2012 - Gaming Fraud Investigations
Table of Contents - Gaming Fraud Investigations
Criminal Investigation (CI) Home Page
How to Report Suspected Tax Fraud Activities?
|
