|
Getting your Trinity Audio player ready...
|
Ten men have pleaded guilty in federal court this week for their roles in a multi-million-dollar illegal sports-betting and money laundering scheme, according to U.S. Attorney Prim F. Escalona of the Northern District of Alabama.
The defendants—identified as Timothy J. Pugsley, 53, and Nathan Burdette, 39, of Birmingham; Christopher Burdette, 32, of Chelsea; Thomas Zito, 59, of Vestavia; Gary Rapp, 46, of Lakeland, Tennessee; Mark Giaquinto, 52, of Upton, Massachusetts; Matthew Voorhees, 49, of Englewood, Colorado; David Richards, 39, of Las Vegas, Nevada; and Joshua Gentrup, 38, of Athens, Georgia—pleaded guilty before U.S. District Judge Madeline Haikala. A tenth defendant, Jonathan Lind, 46, of Birmingham, also admitted guilt. The charges include conspiring to operate an illegal gambling business and participating in a money laundering conspiracy.
Court records indicate that the operation, known as Red44, was a sophisticated bookmaking network that functioned for nearly two decades. Bets were placed online through an offshore server in Costa Rica, with investigators estimating the operation accepted over $2 billion in wagers during its existence.
As part of their plea agreements, all ten defendants—described as senior agents within Red44—have agreed to pay $19.7 million in restitution to the Internal Revenue Service for unpaid excise taxes and other outstanding income tax obligations.
“These guilty pleas are the end result of years of hard work by members of federal and state law enforcement agencies to enforce our nation’s gambling and tax laws,” said U.S. Attorney Escalona. “The defendants illegally accepted millions of dollars in wagers and lived lavishly while avoiding their tax obligations. This office will diligently pursue those who enrich themselves in violation of the law.”
IRS Criminal Investigation Special Agent in Charge Demetrius Hardeman emphasized that illegal sports betting operations are often linked to other criminal activities.
“Excise tax evasion and illegal sports betting are not victimless crimes,” Hardeman said. “Money obtained from illegal gambling operations is often used to finance other criminal activities. IRS-CI special agents are skilled at following the money to investigate and expose these illegal organizations, who will be held accountable.”
The case was investigated by the IRS-Criminal Investigation division and Homeland Security Investigations, with assistance from the Vestavia Hills Police Department, the Shelby County Sheriff’s Office, the Alabama Department of Revenue, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Catherine Crosby, Kristen Osborne, and Ryan Rummage are prosecuting the case.
Sentencing for the defendants is scheduled for May 2025.
