WASHINGTON
A California man pleaded guilty Tuesday to operating an illegal gambling business, laundering money, and evading federal taxes, officials stated.
Jason Noah Feinman of Calabasas operated a Costa Rica-based business that ran a website used by unlicensed gambling operations, allowing customers — including people in California — to place bets in violation of state and federal law, according to court records.
Prosecutors said Feinman laundered proceeds by exchanging cash for checks made payable to himself or his businesses.
Between May 2018 and January 2024, he provided more than $1.5 million in cash to one customer in exchange for 18 checks totaling that amount. Overall, he exchanged between $1.5 million and $3.5 million in cash for checks.
From 2018 to 2022, Feinman knowingly failed to report income from the illegal operation and concealed up to $4,198,136, prosecutors said. In 2020, he earned about $1.8 million but reported no taxable income and paid no federal tax.
The conduct resulted in a tax loss to the United States of no more than $1.5 million, according to court filings.
Feinman is scheduled to be sentenced on May 12. He faces up to 10 years in prison on the money laundering charge and up to five years each on the tax evasion and illegal gambling charges. A federal judge will determine the sentence.
. The investigation was conducted by IRS Criminal Investigation and Homeland Security Investigations.