HAMMOND MAN SENTENCED FOR OPERATING AN
ILLEGAL GAMBLING BUSINESS AND TAX EVASION
JOSEPH A. SCHILLACE IV, age 52, a resident of Hammond, Louisiana, was sentenced today in federal court by U. S. District Judge Nannette Jolivette Brown to thirty (30) months imprisonment, announced U. S. Attorney Jim Letten. In addition, SCHILLACE was ordered to pay $464,180 in restitution to the Internal Revenue Service and a fine of $50,000. After imprisonment, SCHILLACE will be placed on a term of supervised release for three (3) years, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
According to court documents, from on or about January, 1999 and up to and including April 7, 2011, SCHILLACE did conduct, finance, manage, supervise, direct and own all or part of an illegal gambling business, to wit: a gambling business involving sports betting, which gambling business. Specifically, SCHILLACE established a “call center” in an apartment in Hammond, Louisiana which was outfitted with multiple telephone lines and computer access. Gamblers seeking to place monetary bets with SCHILLACE’S operation called in to the center and placed their bets with one of several individuals within SCHILLACE’S organization whose responsibility it was to answer the calls and record the bets. After the sporting event, SCHILLACE or one of his associates would collect the gambling losses from or pay out the gambling winnings to each gambler. Regardless of the result of the bet, SCHILLACE’S gambling operation would keep a percentage or commission of each bet placed, commonly referred to as the “juice”. The gambling operation involved five or more persons who conducted, financed, managed, supervised, directed or owned all or part of said illegal gambling business, which remained in substantially continuous operation for a period in excess of thirty days and had a gross revenue of at least $2,000.00 in any single day.
Further, for the calendar years 2004, 2005, 2006, 2007, 2008, 2009, 2010 and 2011, SCHILLACE, did willfully attempt to evade and defeat a large part of the income and excise tax due and owing by him to the United States of America by concealing and attempting to conceal from the Internal Revenue Service the nature and extent of his income and gross wagers received by intentionally preparing and causing to be prepared, and by signing and causing to be signed, false and fraudulent Forms 1040, U.S. Individual Income Tax Return, and Forms 730, Monthly Tax Return for Wagers, on his behalf, which were filed with the Internal Revenue Service and which said returns reported amounts of his taxable income, income taxes and excise taxes due and owing thereon which the defendant then and there well knew and believed were substantially less than his actual taxable income, income taxes and excise taxes due and owing for the aforementioned months and years.
This matter was investigated by Special Agents of the Department of the Treasury, Internal Revenue Service and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Brian Marcelle and Duane Evans.
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