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John Giannelli jailed For Online Sports Betting
January 5, 2013 : NEW HAMPSHIRE OPERATOR JAILED FOR ONLINE SPORTS BETTING
$452,000 in illegal proceeds forfeited
John Giannelli Sr. of Danvers, New Hampshire was sentenced this week to 2 years behind bars in a federal prison for his role in an illegal online gambling ring.
A press release from the U.S. Attorney's office in New Hampshire and the IRS revealed that Giannelli was also ordered to forfeit $452,000 for running an illegal online gambling ring from his home on the North Shore.
Giannelli pleaded guilty to money laundering, operating an illegal gambling business and five counts of impeding the administration of the Internal Revenue laws back in September last year.
Prosecutors from the U.S. Attorney's office in New Hampshire said that Giannelli ran an illegal sports betting website for four years from his homes in, at first, Peabody and later Kingston, N.H., and that he had a client list of some 300 punters.
Evidence from an analysis of a computer seized at Giannelli's home showed that in a select 12-week period the illegal website generated $188,000 in profits.
The forfeiture of $452,000 is based on what prosecutors said was the total amount of money Giannelli laundered through another legitimate business to make it look like the money was being earned legitimately.
Giannelli was listed as an employee of a former customer’s business. He would give that business cash generated by the online sports betting site and the former customer’s business would cut him a paycheck.
The money laundering made it appear as if Giannelli’s income was legitimate, and generated false W-2 tax forms.
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