Jason Noah Feinman of Calabasas, California, was sentenced to 27 months in federal prison on Tuesday after being found guilty of operating an illegal offshore gambling company, laundering money, and dodging taxes on more than $4 million, according to the US Department of Justice.
Feinman Ran an Illegal Gambling Business
According to court records and statements produced in court, Feinman owned a Costa Rica-based corporation that hosted a website used by unlicensed gambling operators to conduct unlawful betting. Customers were able to place wagers through Feinman’s websites, which was illegal under both state and federal law.
Prosecutors claimed Feinman laundered the proceeds from the unlawful gambling activity by turning cash into checks issued by one of his firms. Between May 2018 and January 2024, he gave a customer more than $1.5 million in cash and received the same amount back in 18 checks. Authorities said he traded between $1.5 million and $3.5 million in cash for checks throughout the operation.
IRS Criminal Investigation and Homeland Security Investigations conducted the investigation, with Tax Division attorneys John C. Gerardi and Charles A. O’Reilly leading the prosecution. In April, the Justice Department announced the formation of the National Fraud Enforcement Division, a unit dedicated to investigating and prosecuting fraud against Americans. The division is part of President Trump’s Task Force to Eliminate Fraud, which aims to combat fraud, waste, and abuse in federal benefit programs.
Feinman Also Evaded Taxes
Feinman’s misdemeanors do not stop with unlawful betting. In fact, the Californian dodged millions of dollars in taxes over a four-year period. According to authorities, Feinman failed to pay taxes on the profits from his unlawful gaming company between 2018 and 2022.
Despite earning around $1.8 million in 2020, he filed no taxable income on his federal tax return and paid no taxes that year. Authorities claim he ultimately dodged taxes on nearly $4.2 million in income. During the trial, Feinman pleaded guilty to one count of tax evasion, operating an unlawful gaming company, and money laundering.
Leave a Reply