Little Rock Owner of Chicot Game Room Pleads Guilty to Tax Evasion and Operating an Illegal Gambling Business

LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Tracey D. Montaño, Special Agent in Charge, Internal Revenue Service—Criminal Investigation (IRS-CI), announced today that Allan Siebert, 75, of Little Rock, agreed to waive indictment and pleaded guilty to a two-count federal information charging him with tax evasion and operating an illegal gambling business.

Today’s plea hearing took place before United States District Judge J. Leon Holmes, who will sentence Siebert at a later date. As part of a plea agreement with the United States, Seibert will pay $331,821 in restitution to the IRS. In addition, Seibert will forfeit two pieces of real property and more than $1 million representing the proceeds of the illegal gambling operation.

"For nearly a decade this defendant broke the law, but today his illegal conduct caught up with him," Hiland said. "Mr. Seibert not only defrauded the United States, he also exploited the hundreds of people he took money from over the years with his illegal gaming machines. This case should send a message to the Eastern District of Arkansas that our office will not tolerate this type of behavior."

From at least August 2007 to May 2017, Siebert owned and operated the Chicot Game Room, an illegal gambling business. This business used various gaming devices that were illegal under the laws of Arkansas.

Between January 2012 and October 2016, Siebert evaded paying $331,821 in federal income tax that he owed by withholding cash from his business deposits, funneling business receipts into his personal properties, and causing his accountant to prepare false U.S. Individual Income Tax Returns for tax years 2012, 2013, 2014 and 2015.

"No matter the source of income, all income is taxable, including illegal gambling proceeds," Montaño said. "Everyone has a responsibility to file correct and accurate tax returns. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS Criminal Investigation’s enforcement strategy. We will vigorously investigate those individuals who knowingly and willfully evade their tax obligation."

"The Little Rock Police Department has had a long-standing relationship with our federal partners," Little Rock Assistant Chief Wayne Bewley said. "We entered into a partnership with the IRS recently. We look forward to continuing this relationship and continued success as we fight a variety of crimes within Little Rock."

The maximum penalties for tax evasion are not more than five years’ imprisonment, a $100,000 fine, and three years’ of supervised release. The penalty for conducting an illegal gambling business is not more than five years’ imprisonment, a $250,000 fine, and three years’ of supervised release.

This case was investigated by the IRS—CI and the Little Rock Police Department. Assistant United States Attorney Cameron McCree prosecuted the case for the United States.