The Department of Justice (DOJ) recently accused a Texas family of running an elaborate and illegal gambling business. They claim the family would funnel the money used for to run the gambling business through two legitimate businesses: the family car dealership and a holding company for the family car dealership. The prosecution claimed the family used this process to launder the allegedly ill-gotten gains.
The DOJ further claims the family took steps to reduce the risk of triggering federal reporting requirements by only taking out deposits from the bank that were under $10,000. In addition to breaking federal and state laws with the illegal gambling business, the government also states the family was aware that they were breaking tax laws by not reporting the earnings and by failing to register as bookmakers with the Internal Revenue Service (IRS).
If the government can substantiate the allegations that the family was intentional in the process and knowingly broke the law, they can pursue an increase in penalties.
When presented with the evidence the family chose to accept a plea deal. As a result, they have agreed to forfeit over $1.7 million in cash, luxury jewelry and professional sports memorabilia. They will also pay the government a fine of over $35 million. The deal still comes with jail time. The sentencing guidelines vary for each, with one facing up to ten years and the other two up to five. Ultimately, instead of ten years the leader of the family received a 33 month prison sentence, the court sentenced his wife and son to 24 months each.