Monmouth County Man Admits To Gambling Conspiracy, Forfeits $80,000
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted his role in a conspiracy to operate a gambling enterprise, U.S. Attorney Craig Carpenito announced.
John Dougherty, 55, of Keyport, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to use facilities in interstate commerce to carry on a business enterprise involving gambling in violation of New Jersey law.
According to documents filed in this case and statements made in court:
From January 2011 to October 2017, Dougherty conspired with an unnamed New Jersey resident (“Individual 1”). Acting as Individual 1’s agent for their gambling business, Dougherty had his own group of bettors who, with Individual 1’s knowledge and assistance, were given access to a website to conduct sports betting with their own usernames and passwords.
Dougherty used money provided by Individual 1 to pay bets won by Dougherty’s bettors. Dougherty also collected money from his bettors for bets they lost and then met with Individual 1 in various locations in New Jersey to share that money.
Dougherty and Individual 1 agreed to use various facilities in interstate commerce to carry on their gambling business, including the internet, cellular telephones used for interstate calls and text messaging, and an overnight delivery service. At various times, Individual 1 changed the cell phone number that he used to communicate with Dougherty and referred to himself in text messages by a code name. After being informed by Dougherty about an expected delivery of “35K” from one of Dougherty’s bettors, Individual 1 sent Dougherty a text message, “Let me know when the eagle has landed.” Later that same day, Dougherty sent Individual 1 a text message with a photograph of the UPS Express Box containing a substantial amount of cash sent by his bettor and with the note, “Eagle has landed. Gonna count now.”
The charge of conspiring to use facilities in interstate commerce to carry on a gambling business in violation of local state law carries a maximum potential penalty of five years in prison and a $250,000 fine. Dougherty forfeited $80,000 to the United States. Sentencing is scheduled for May 6, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney J Imbert of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Keith G. Oliver Esq., Middletown, New Jersey