ILLINOIS INTERNET GAMBLING OPERATION BUST

02/03/2012 : Tax evasion and illegal online gambling operations

The United States Attorney for the Northern District of Illinois, Patrick J Fitzgerald, has announced charges against two Chicago men on tax evasion issues and running an internet gambling operation.

Charges filed in the United States District Court against defendants Anthony Buttitta (42) and his father Dominic Buttitta (69) involve conspiracy to impede the Internal Revenue Service in the collection of federal taxes, as well as separately operating illegal internet gambling business.

The defendants' Elgin Entertainment Enterprises Inc's "Blackjacks Gentlemen's Club" situated in Elgin was the target of the tax investigation, however, it emerged that the two men also operated internet gambling businesses skybook.com, largejoe.com and theredhotel.com between 2005 and 2009.

Funds derived from the internet gambling businesses are reported to be in the region of $ 1 million placed in gross wagers, garnering the defendants a profit of $400,000 in net profits. The charges seek forfeiture of $400 000 as illegal proceeds.

The proceeds of both the tax evasion and internet gambling operations went towards funding a lavish property portfolio that included making direct payments towards a $2.9 million condominium in Las Vegas and another in Costa Rica, a home in St. Charles and personal credit card payments.

A maximum penalty of a five year prison sentence is possible on each count along with a $250 000 fine, restitution, costs of prosecution, payment of all back taxes and a civil fraud penalty of 75 percent of the underpayment plus interest.

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