Ten individuals have admitted guilt in a case involving a large-scale sports-betting operation, as announced by U.S. Attorney Prim F. Escalona and Demetrius Hardeman, Special Agent in Charge of the IRS Criminal Investigation, Atlanta Field Office.
The defendants include Timothy J. Pughsley and Nathan Burdette from Birmingham, Alabama; Christopher Burdette from Chelsea, Alabama; Thomas Zito from Vestavia, Alabama; Gary Rapp from Lakeland, Tennessee; Mark Giaquinto from Upton, Massachusetts; Matthew Voorhees from Englewood, Colorado; David Richards from Las Vegas, Nevada; Joshua Gentrup from Athens, Georgia; and Jonathan Lind also from Birmingham. They pleaded guilty before United States District Judge Madeline Haikala to charges related to operating an illegal gambling business and participating in a money laundering conspiracy. Sentencing is scheduled for May 2025.
According to plea agreements, Pughsley initiated the bookmaking operation over 17 years ago under the name "Red44," with activities conducted online through an offshore server in Costa Rica. The organization reportedly handled more than $2 billion in wagers during its operation. The defendants have agreed to pay $19,777,382.61 in excise tax restitution to the IRS due to their involvement with wagers accepted nationwide.
U.S. Attorney Escalona commented on the outcome: “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.” She added that they would continue pursuing those who violate such laws for personal gain.
Special Agent Hardeman remarked on the broader implications: “Excise tax evasion and illegal sports betting are not victimless crimes.” He noted that proceeds often fund other criminal activities and emphasized the role of IRS-CI special agents in tracking financial trails to uncover illegal organizations.
The investigation was led by IRS-Criminal Investigation and Homeland Security Investigations with support from local police departments and federal agencies. Assistant U.S. Attorneys Catherine Crosby, Kristen Osborne, and Ryan Rummage are handling prosecution duties.
