A Beaumont, Texas man was sentenced to 33 months in prison for tax evasion and for running a business that accepted illegal wagers on sporting events from 1985 to 2017. Larry Tillery owned two companies and used both as a front to launder the illegal gambling money. He was ordered to pay restitution of $1,000,040 and to forfeit approximately two million dollars in cash and other items. A judgment of $32,758,541 was also ordered by the court.
His wife Judy was given 24 months’ probation and shares the judgment with her husband. She assisted with laundering the proceeds of the operation, which allowed bettors to place bets on sporting events, including professional and collegiate basketball, baseball and football games via a website.
Larry’s son Brian was also sentenced to 24 months’ probation and was ordered to forfeit $245,477 and a home worth $600,000. He collected money from bettors, paid bettors, made wire transfers to pay illegal gambling debts. He also regularly mailed currency totaling more than $10,000 through the US Post Office.
While the gambling operation was illegal, federal tax law still required that Tillery register with the IRS as a bookmaker, report total wages he accepted monthly, and pay a gross wagering excise tax of 2% every month. Between the years 2011 and 2016, Tillery took at least 52 million dollars in illegal wagers, resulting in over a million dollars in wagering taxes he did not pay.