Portland Man Pleads Guilty to Gambling, Money Laundering and False Tax Return Charges
Portland, Maine: United States Attorney Halsey B. Frank announced that Stephen Mardigan, 61, of Portland, Maine, pleaded guilty today in U.S. District Court to running an illegal gambling business, money laundering, and subscribing to a false income tax return.
According to court records, between 2003 and April 7, 2017, Mardigan ran an illegal multi-million dollar sports gambling business in Portland that received bets on professional and college sporting events. Mardigan used proceeds from the illegal gambling business to buy, maintain, improve, and pay expenses related to numerous real properties located in the greater Portland area. In 2015, Mardigan received substantial income from the illegal gambling business that he failed to report on his federal income tax return. On April 7, 2017, agents seized betting records; $142,974 from Mardigan’s residence; $500,000 from a safe deposit box; and $104,072.70 from a business bank account in Mardigan’s name d/b/a “Avenue Auto” that Mardigan used to launder his gambling proceeds.
The defendant faces up to five years in jail and twice the gain on the gambling charge, 20 years and twice the value of the property laundered on the money laundering charge, and three years and $100,000 on the tax charge. The defendant agreed to forfeit over $1,375,000 and 18 real properties located in Portland, Westbrook, Gorham and Cape Elizabeth, and to pay $1,338,891 in restitution to the Internal Revenue Service (“IRS”). He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the FBI’s Southern Maine Gang Task Force; the Portland, South Portland, Lewiston, Westbrook, Bangor, and Cape Elizabeth Police Departments; the Maine State Police; IRS, Criminal Investigation; and the U.S. Postal Inspection Service.