Woman Skimmed Gaming Machine Profits

[vc_row][vc_column][vc_column_text]The woman’s company split gaming machine profits with bar owners, then underreported income.

 A Wisconsin woman who operated a gaming machine company pleaded guilty to conspiring to defraud the IRS and to filing a false 2018 corporate income tax return for her business.

Mary Lavine, 65, Madison, Wisconsin, was sentenced to one year and one day in prison and fined $75,000.

Lavine ran Bullseye Inc. with another person, who is now deceased. Bullseye operated as a coin-operated music and amusement game vending business.

Lavine admitted that Bullseye also contracted with bar owners to place video gaming machines at their bars.

Bullseye split the profits generated by the machine with the bar owners. Different bar owners had different profit-sharing agreements with Bullseye.

Lavine admitted that she worked with certain bar owners to skim the cash receipts generated from the machines and not report 100 percent of the cash receipts to the IRS or Wisconsin Department of Revenue.

This underreporting caused Bullseye to evade its own corporate income taxes, as well as the Wisconsin sales taxes and income taxes for Bullseye and its bar owners.

In addition to her prison sentence and fine, Lavin was also ordered to pay $834,769.65 to the IRS and $1.9 million to the Wisconsin Department of Revenue. To date, five individuals have pleaded guilty as part of this criminal tax investigation and Lavine is the fourth to be sentenced.[/vc_column_text][us_image image=”2692″][/vc_column][/vc_row]