Former University of Cincinnati basketball player ordered to pay more than quarter of a million dollars for failing to file taxes

CINCINNATI – A former prominent college basketball player, who currently plays professionally overseas, was sentenced in U.S. District Court today for failing to file tax returns in the United States.

Yancy D. Gates, 31, of Cincinnati, was sentenced to one year of probation and ordered to pay nearly $270,000 in restitution to the IRS for failing to pay his taxes.

According to court documents, since 2012, Gates has played professional basketball for teams in Lithuania, Israel, China Germany and France.

Gates earned anywhere from $80,000 for his first season to $80,000 per month during the season he played in China. In addition to his salary, Gates’ employer teams provided him with all of his needs while living abroad, including his apartment, utilities, a car, health insurance, transportation, and several round trip flights he could use for himself or for family and friends.

During the offseason, Gates would return to the Southern District of Ohio to live.

Gates knew he was required to report his foreign earned income on a U.S. tax return, but has never filed a return nor reported any of his income from playing professional basketball.

Gates was charged by a bill of information in August 2019 pleaded guilty in January 2020 to two counts of willfully failing to file tax returns. His case was unsealed today.

Congress sets the maximum statutory sentence. Sentencing of the defendant is determined by the Court based on the advisory sentencing guidelines and other statutory factors.

David M. DeVillers, United States Attorney for the Southern District of Ohio, and Bryant Jackson, Special Agent in Charge of the IRS-Criminal Investigation Cincinnati Field Office, announced the sentence imposed by U.S. Magistrate Judge Karen L. Litkovitz. Assistant United States Attorney Anthony Springer is representing the United States in this case.

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