Bookmaker to forfeit $600k and pay $200k as restitution for running illegal gambling operation, laundering proceeds and filing false income tax return
Justin Herdman, U.S. Attorney for the Northern District of Ohio, announced today that Ryan Driscoll, age 48, of Aurora, was sentenced to three years of probation and ordered to forfeit $628,950.00 in cash seized during a search warrant and pay $208,693.00 to the IRS as restitution after entering a plea of guilty on January 15, 2020, to running an illegal sports gambling business with others, laundering the proceeds and filing a false income tax return.
“Not only did this individual try to enrich himself illegally, but he also attempted to avoid paying taxes on these ill-gotten proceeds in order to further profit and conceal his crimes,” said U.S. Attorney Justin Herdman. “This substantial forfeiture and restitution reflect the nature and great lengths that Driscoll went to avoid paying his duly owed income taxes.”
“Individuals are required to pay taxes on all sources of income, even income earned from illegal gambling,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Ryan Driscoll also attempted to launder the profits from his offshore illegal gambling business, but the IRS followed the money trail, which was vital to dismantling his criminal conduct.”
According to court documents, from July 2015 to August 2019, Driscoll operated as a bookmaker for his clients and provided them with access to offshore sports gambling websites. The websites allowed Driscoll’s clients to place bets on sporting events and track wins and losses and monies due. Driscoll paid out winnings and collected losses locally. During this time, Driscoll concealed the fact that the majority of his income came from the illegal gambling business and hid the proceeds as large bundles of cash in $10,000 increments in his home.
In 2019, Driscoll made a payment for membership at “The Mayfield Sand Ridge Club” country club using the proceeds from the illegal gambling business. This transaction was designed to conceal and disguise the nature and source of the illegal funds. Between 2014 and 2017, Driscoll also deposited approximately $167,827.00 in cash into his personal bank accounts and used an additional $197,879.00 in cash and money orders to make payments on vehicles and his country club membership.
For the tax years 2014 through 2017, Driscoll underreported his income by approximately $825,323.00, which resulted in additional tax due and owing of approximately $208,693.00. In 2018, Driscoll knowingly submitted a false income tax return that grossly underreported his income and failed to disclose proceeds made from the illegal gambling business.
This case was investigated by the IRS-Criminal Investigation and U.S. Secret Service. This case was prosecuted by Assistant U.S. Attorneys Alex A. Abreu, Robert E. Buford and James L. Morford and former U.S. Attorney Carmen E. Henderson.