{"id":49268,"date":"2022-03-31T21:27:07","date_gmt":"2022-04-01T04:27:07","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=49268"},"modified":"2022-03-31T21:27:07","modified_gmt":"2022-04-01T04:27:07","slug":"feds-shut-down-socal-illegal-sports-gambling-operation-involving-current-and-former-pro-athletes","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=49268","title":{"rendered":"Feds Shut Down SoCal Illegal Sports Gambling Operation Involving Current and Former Pro Athletes"},"content":{"rendered":"<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong>LOS ANGELES<\/strong><\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3918 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice.png 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Federal authorities Thursday announced a series of cases stemming from an illegal gambling operation, according to authorities.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The operation involved current and former professional athletes, some of whom assisted with the business and others who placed large bets on games, according to officials.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In documents unsealed Wednesday in federal court, the principals of the operation agreed to plead guilty to conspiracy charges. They admitted they took in millions of dollars in bets, many of which were facilitated by a Costa Rica-based gambling website. <\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-37053 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/07\/cropped-Justice-Scales-1.jpg\" alt=\"\" width=\"299\" height=\"90\" \/>One of the leaders of the scheme also admitted that he failed to report to the IRS nearly $1.5 million in income he received from the gambling scheme over two years, officials stated.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The owner of the online gambling business and website pleaded guilty earlier this month and admitted the business was illegal under California law.\u00a0 <\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">This is because it involved at least five people, operated for at least six years, and often had gross revenue of well over $2,000 on a single day.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Four new cases and related plea agreements were unsealed this week against:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 20px;\">Wayne Nix, 45, of Newport Coast, a former minor league baseball player, who was charged with one count of conspiring to operate an illegal sports gambling business, and one count of filing a false tax return;<\/span><\/li>\n<li><span style=\"font-size: 20px;\">Edon Kagasoff, 44, of Lake Forest, Nix\u2019s longtime partner in the operation, who was charged with one count of conspiring to operate an illegal sports gambling business;<\/span><\/li>\n<li><span style=\"font-size: 20px;\">Howard Miller, 63, of Gardena, who was charged with one count of aiding and abetting the operation of an illegal sports gambling business by assisting in the collection and payout of gambling proceeds related to the Costa Rica-based website; and<\/span><\/li>\n<li><span style=\"font-size: 20px;\">Celebrity Financial LLC, dba Sherman Oaks Check Cashing, which was charged with failing to maintain an effective money laundering program related to it cashing at least $18 million in checks from the illegal sport gambling business at its San Fernando Valley check cashing store.<\/span><\/li>\n<\/ul>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Representatives of Celebrity Financial appeared in court on March 28. Nix made his first court appearance Wednesday, and he is scheduled to formally enter his guilty plea on April 11.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Justice Department also announced that earlier this month the court unsealed cases against two other defendants:<\/span><\/p>\n<ul style=\"text-align: center;\" type=\"disc\">\n<li class=\"yiv0239397938MsoListParagraphCxSpFirst\"><span style=\"font-size: 20px;\">Kenneth Arsenian, 52, of Newport Beach, pleaded guilty on January 26 to four charges: operating an illegal sports gambling business, filing a false tax return, money laundering, and accepting a financial instrument for unlawful internet gambling; and<\/span><\/li>\n<li class=\"yiv0239397938MsoListParagraphCxSpLast\"><span style=\"font-size: 20px;\">Joseph Castelao, 56, of Rancho Palos Verdes, the owner of the gambling website \u2013 Sand Island Sports \u2013 pleaded guilty on March 15 to operating an illegal gambling business.<\/span><\/li>\n<\/ul>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">According to the court documents made public this week, Nix began operating a bookmaking business about 20 years ago. <\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Through his contacts in the sports world, Nix developed a client list that included current and former professional athletes. He employed three former Major League Baseball players to assist with the business.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Kagasoff joined Nix in the gambling operation around 2014.\u00a0 They used an online infrastructure and calling center operated by Sand Island Sports to create accounts for bettors, according to court documents.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The evidence noted that Nix and his associates paid winning bets and retained nearly all of the money collected from bettors.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Nix\u2019s plea agreement outlines specific incidents related to the betting scheme, including receiving payments for gambling losses from a professional football player, a Major League Baseball coach, and a baseball analyst. <\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The plea agreement also discusses a bettor who wagered $1 million a year with Nix\u2019s operation, a $5 million bet on the 2019 Super Bowl, and a sports broadcaster who told Nix he was going to refinance his home to pay off gambling debts.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In relation to the tax count against him, Nix admitted receiving $1,466,947 in income that he failed to report on his 2017 and 2018 federal income tax returns. In his plea agreement, Nix agreed to pay all back taxes due for those years \u2013 a total of $1,248,429, which includes the back taxes, penalties and interest. <\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Nix also agreed to forfeit to the government nearly $1.3 million seized in February 2020 from two bank accounts and two brokerage accounts he controlled.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">When Arsenian pleaded guilty in January, he admitted failing to report to the IRS more than $2.8 million in income for the years 2015 through 2018. <\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Arsenian has agreed to pay $1.1 million in back taxes, plus additional penalties and interest. Arsenian also agreed to forfeit $341,459 in United States currency seized from his residence in February 2020.<\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In its plea agreement, Sherman Oaks Check Cashing admitted that it encouraged customers to bring large business checks \u2013 far in excess of the $10,000 that normally triggers a Currency Transaction Report (CTR) to federal authorities \u2013 and employees of the company told customers that it would not file CTRs. <\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">As a result, many of its customers brought checks that were proceeds of unlawful activity, including two customers of the gambling operation who cashed at least $18.35 million in checks. <\/span><\/p>\n<p class=\"yiv0239397938MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Sherman Oaks Check Cashing admitted that it made at least $500,000 in profits by engaging in this activity. In its plea agreement, the company agreed to pay a $500,000 fine, which is the maximum penalty under the law.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>LOS ANGELES Federal authorities Thursday announced a series of cases stemming from an illegal gambling operation, according to authorities. The operation involved current and former professional athletes, some of whom assisted with&#8230;<\/p>\n","protected":false},"author":1,"featured_media":49270,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-49268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Feds Shut Down SoCal Illegal Sports Gambling Operation Involving Current and Former Pro Athletes<\/title>\n<meta name=\"description\" content=\"LOS ANGELES Federal authorities Thursday announced a series of cases stemming from an illegal gambling operation, according to authorities. 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