The 11 defendants charged in connection to a possible multi-million-dollar illegal sports gambling conspiracy will not go to trial this month, as planned. Instead, the trial is being put off until at least December after the judge granted a continuance at the defense's request.
Of the 11 defendants, six are from Alabama.
The charges break down as follows:
· Timothy Pughsley, 51, of Birmingham, is charged with 38 counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering and four counts of money laundering.
· Christopher Burdette, 30, of Chelsea, is charged with six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering, and one count of money laundering.
· Nathanael Burdette, 36, of Birmingham, is charged with six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering, and two counts of money laundering.
· Jonathan Lind, 44, of Birmingham, is charged with six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering, and two counts of money laundering.
· Thomas V. Zito, 57, of Vestavia, is charged with six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering, and one count of money laundering.
· Christopher Donaldson, 46, of Trussville, is charged with one count of conspiring to operate an illegal sport-betting organization and one count of conspiring to commit money laundering.
· Gary L. Rapp, Jr., 44, of Lakeland, Tennessee, is charged with six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering and two counts of money laundering.
· Mark Giaquinto, 50, of Upton, Massachusetts, is charged with six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering and two counts of money laundering.
· Matthew D. Voorhees, 47, of Englewood, Colorado, is charged with six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering and two counts of money laundering.
· David Richards, 38, of Las Vegas, Nevada, is charged with six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering and two counts of money laundering.
· Joshua Gentrup, 36, of Athens, Georgia, is charged with six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering and two counts of money laundering.
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Attorneys for the defendants told the judge in the federal case they would not be ready to try the case in June as originally scheduled because the evidence is “voluminous, the charges are unusual, and the defendants intend to conduct their own investigation into the facts supporting the indictment.”
United States Magistrate Judge Gary M. Borden granted the request to continue the case until after December 4.
The United States Department of Justice investigated an alleged scheme that prosecutors believe spanned at least three years.
According to an indictment, the head of the operation is Timothy J. Pughsley. He started the bookmaking business at least 17 years ago, but it eventually became known as “Red44,” a website where bettors could place their bets on sporting events. More players were eventually added as “senior agents,” prosecutors say. Pughsley also invested in properties that are now on a seizure list, many in Alabama.
According to the indictment, the website had an offshore server in Costa Rica. Court documents state that bettors generally placed bets on credit. No money was exchanged through the Red44 online platform; bank accounts, PayPal, Venmo, CashApp, GooglePay, cash and virtual currency were used.
The organization was estimated to have accepted hundreds of millions of dollars in wagers from bettors from 2019 through 2021 and did not pay taxes, according to the indictment. Excise tax owed to the IRS from 2019 profits is estimated to be $6,882,460.46. 2020 excise tax owed would total approximately $6 million and 2021 excise tax owed would total over $7 million.
The date for the trial will be decided at a later date.
To connect with the author of this story, or to comment, email erica.thomas@1819news.com.
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