We’re about to see a the Unlawful Internet Gambling Enforcement Act (UIGEA) in action and the United States Department of Justice prosecutes Todd Lyons from Beverly, Massachusetts with the crimes of racketeering, filing false tax returns, operating an illegal gambling operations, interstate travel in aid of racketeering. And a laundry list of other charges, including money laundering.
Thirty six year old Lyons was reportedly involved in a business that handled funds for the Sports Offshore, an offshore gambling business established in St. Johns in Antigua but that still offers betting services within the United States. Apparently Lyons collected at least $22 million in funds and even used FedEx to send the cash off to Antigua.
But the charged aren’t just gambling related. Lyons apparently also falsified his tax returns. Even gamblers are encouraged (well, legally required) to report their earnings to the IRS. That institution doesn’t fool around when it comes to money. But Lyons apparently claimed less than $50,000 in years when he reportedly earned well over $150,000. Or there’s that year when he earned over $200,000 and claimed less than $100,000. Want to know how Lyons did so well in the gambling market? Well, when gamblers lost, he made a commission. So, if you lost, he won.
So, what happens if Lyons is found guilty? He faces a prison sentence of up to 20 years on the money laundering charges and another 10 years on other charges. He also faces fines of up to $250,000 or about a year’s unclaimed salary for the man. I’m wondering if we’ll really see the UIGEA work out here since the tax charges alone could send Lyons to prison.