June 12, 2003

PRESS RELEASE

THREE MASSACHUSETTS MEN CHARGED
WITH TAX, WAGERING OFFENSES

Boston, MA... Three Massachusetts men were charged today in federal court with filing false tax returns and/or the interstate transmission of wagering information.

United States Attorney Michael J. Sullivan; Joseph A. Galasso, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation; and Colonel Thomas J. Foley, Superintendent of the Massachusetts State Police, announced today that DONALD A. WILLIS, age 68, of 18 Cliffside Drive, Plymouth, Massachusetts, was charged in an Information with four counts of Filing a False Tax Return; GEORGE A. CHUTE, age 52, of 4 Cobb Lane, Dedham, Massachusetts, was charged in an Information with three counts of Filing a False Tax Return and one count of Interstate Transmission of Wagering Information; and PAUL F. WILLIS, age 67, of 222 Cain Avenue, Braintree, Massachusetts, was charged in an Information with one count of Interstate Transmission of Wagering Information.

The Information charging DONALD WILLIS alleges that he was the primary operator of an illegal gambling business with a main office in Waltham. It is alleged that WILLIS routinely submitted federal tax returns which substantially understated his actual income. It is alleged that in his 1996 federal income tax return, WILLIS reported total income of $63,800 when in fact his income was at least $130,709. It is alleged that in his 1997 federal income tax return WILLIS reported total income of $58,408 when in fact his income was at least $152,599; that in his 1998 federal income tax return WILLIS reported total income of $63, 943 when in fact his total income was at least $378,491; and in his 1999 federal income tax return, WILLIS reported total income of $145,057 when in fact his total income was at least $624,593.

The Information charging GEORGE CHUTE alleges that he managed the Waltham office of DONALD WILLIS' illegal gambling business. It is alleged that in the course of that business CHUTE placed a telephone call from Massachusetts to New Jersey in order to accept or place bets or wagers, or to give or receive information assisting in the placing of bets and wagers. It is further alleged that in his 1996 federal income tax return, CHUTE reported total income of $24,801 when in fact his income was at least $60,002; that in his 1997 federal income tax return, CHUTE reported total income of $27,447 when in fact his income was at least $71,249; and that in his 1998 federal income tax return, CHUTE reported total income of $28,803 when in fact his income was at least $111,705.

The Information charging PAUL WILLIS alleges that he assisted in running an illegal gambling business, and that in the course of that business he placed a telephone call from Georgia to Massachusetts in order to accept or place bets or wagers, or to give or receive information assisting in the placing of bets and wagers.

If convicted on these charges, DONALD A. WILLIS faces up to 3 years' imprisonment, to be followed by 1 year of supervised release, and a $250,000 fine on each of four counts; GEORGE A. CHUTE faces up to 3 years' imprisonment, to be followed by 1 year of supervised release, and a $250,000 fine on each of the three tax counts and up to 2 years' imprisonment to be followed by 1 year of supervised release and a $250,000 fine on the wagering count; and PAUL F. WILLIS faces up to 2 years' imprisonment to be followed by 1 year of supervised release and a $250,000 fine.

The case was referred to the U.S. Attorney's Office by the Norfolk County District Attorney's Office, investigated by the U.S. Internal Revenue Service, Criminal Investigation and the Massachusetts State Police. It is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard in Sullivan's Economic Crimes Unit.

Press Contact: Samantha Martin, (617) 748-3139