Bookmaker Gambles That the IRS Won’t Discover Illegal Income
Two men from Wichita, KS, Danny Chapman and Daven Flax pleaded guilty to federal charges of income tax evasion and operating an illegal gambling business.
Chapman was a sports bookmaker who failed to report earnings of $345,000 made from illegal gambling. Customers of Chapman would place bets through an online gambling site based in Costa Rica.
Chapman attempted to hide his income by purchasing money orders and cashier’s checks in the name of family members, and by purchasing cars in cash under other’s names.
Daven Flax was in charge of the invitation only poker games where his duties were to pay the dealers, caterers and waitresses where the games were held in various commercial locations in Wichita. Flax also failed to disclose his illegal income which amounted to $65,000 in federal taxes owed.
Both defendants face up to five years in prison and monetary fines.
About the Author
Gregory McCauley Jr., Esq.
Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court
Gregory McCauley Jr. is an experienced tax attorney who has personally represented more than 1,000 clients in matters ranging from civil tax controversy and IRS examinations to criminal tax defense, U.S. Tax Court litigation, and complex business disputes. His practice is built on a foundation his c...
