Denver Man Pleads Guilty To Filing False Tax Return As Part Of Running Illegal Sports Betting Business
DENVER – Daniel Dinner, age 61, of Denver, Colorado, pled guilty today before U.S. District Court Judge Robert E. Blackburn to one count of filing a false income tax return, the United States Attorney’s Office and IRS Criminal Investigation announced. Dinner, who is free on bond, is scheduled to be sentenced by Judge Blackburn on August 8, 2013.
Dinner was originally charged by Information on April 12, 2013 after waiving his Constitutional right to be charged by Indictment. According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, from 2005 through 2009, Dinner ran an illegal sports betting business in the Denver metro area and on line for which most of his proceeds were cash. In March 2011, agents executed a search warrant and recovered approximately $1.2 million in cash from the defendant's properties and safe deposit boxes which came from both legitimate and illegitimate sources. Dinner owned two homes with an aggregate assessed value of more than one million dollars.
During 2005 through 2009 Dinner filed tax returns reporting some legitimate income from an agricultural business owned by a family trust but he also made money from his illegal sports betting business which he did not report on his tax returns. He signed and filed tax returns under penalty of perjury with the IRS for each of these years. He reported less income than he actually made.
The total tax loss to the government is $165,193 which Dinner has agreed to pay to the Internal Revenue Service as part of his plea agreement.
“While illegal sports betting is not a legitimate business, the income the defendant received is still taxable,” said U.S. Attorney John Walsh. “In this case the defendant faces criminal consequences for not declaring all of his income to the IRS and for not paying his income tax.”
“This is a reminder that all taxpayers should file complete and accurate tax returns; all income regardless of the source is taxable,” said Steven Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Dinner faces one count of filing a false income tax return which carries a penalty of not more than 3 years in federal prison and a fine of up to $250,000.
This case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Suneeta Hazra.