A Santa Monica man has recently entered a guilty plea concerning a range of serious charges, including running an illegal gambling operation, evading taxes, and money laundering, as was announced by authorities. Christopher Scott King, implicated in conducting illicit betting activities in the heart of Los Angeles County, was accused of employing a Costa Rican sports betting website for accepting wagers on various sporting events, starkly against California's state and federal regulations.
Operating under the radar of the law, King amassed income of $13,586,493 between 2019 and 2022, which he strategically concealed from the IRS. According to the court documents obtained by The Justice Department, King, on his 2022 tax return, mentioned a taxable income of $143,258, while in stark contrast, he had actually earned over $5 million in that year alone.
The money laundering aspect of King's scheme involved funneling proceeds through various outlets, including real estate development projects and investments in gold. Additionally, he was found to support his brokerage and other financial accounts using the capital sourced from his unlawful gambling business. He has agreed to pay $10 million in personal forfeiture at sentencing, as per his plea.
In a report detailing the tax malfeasance, the total tax loss caused by King to the IRS was computed to be about $3,804,218. Working alongside the Justice Department’s Tax Division, the IRS Criminal Investigation’s International Tax and Financial Crimes unit, as well as Homeland Security Investigations, took charge of bringing to light the illicit financial undertakings of King. Trial Attorneys John C. Gerardi and Charles A. O'Reilly of the Tax Division are assigned to the prosecution of the case.
As King readies for his sentencing scheduled for September 9, he stares down the prospect of a maximum penalty of five years in prison for each of the charges, which encapsulates tax evasion, operating an illegal gambling business, and accepting financial instruments for unlawful internet gambling, and an additional decade for money laundering. Further details regarding sentencing will be at the discretion of a federal district court judge, who will take into account the U.S. Sentencing Guidelines and other relevant statutory factors.
