Jason Noah Feinman from Calabasas, California, was sentenced Tuesday to 27 months in federal prison after being convicted of operating an illegal offshore gambling enterprise, laundering money, and evading taxes on more than $4 million, according to the US Department of Justice.
Feinman Ran an Illegal Gambling Business
Court records and statements presented in court showed that Feinman operated a Costa Rica-based company that ran a website used by unlicensed gambling operators to facilitate illegal betting activities. The platform allowed customers to place wagers through websites maintained by Feinman, in violation of state and federal laws.
Prosecutors said Feinman laundered the money from the illegal gambling operation by converting cash into checks issued by one of his businesses. Between May 2018 and January 2024, he provided a customer with more than $1.5 million in cash and received the same amount back through 18 checks. In total, authorities said he exchanged between approximately $1.5 million and $3.5 million in cash for checks over the course of the scheme.
The investigation was conducted by IRS Criminal Investigation and Homeland Security Investigations, while Tax Division attorneys John C. Gerardi and Charles A. O’Reilly led the prosecution. Back in April, the Justice Department announced the creation of the National Fraud Enforcement Division, a unit dedicated to investigating and prosecuting fraud targeting Americans. The division is part of President Trump’s Task Force to Eliminate Fraud, an initiative aimed at combating fraud, waste, and abuse in federal benefit programs.
Feinman Also Evaded Taxes
However, the illegal betting business isn’t Feinman’s only misdemeanor. In fact, the Californian also evaded millions in taxes over a four-year period. According to prosecutors, Feinman failed to pay taxes on income generated by his illegal gambling operation between 2018 and 2022.
Although he earned about $1.8 million in 2020, he reported no taxable income on his federal tax return and paid no taxes that year. Authorities said he ultimately evaded taxes on approximately $4.2 million in income. During the trial, Feinman pleaded guilty to one count each of tax evasion, operating an illegal gambling business, and money laundering.
In other news from California, this time on a much more positive note, one lucky player won a Match 5 prize from Powerball, and the game’s jackpot has surpassed $300 million.
Stefan Velikov
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