From Tribune staff reports
BIRMINGHAM, Ala.–Eight of the men who were indicted in a multi-million dollar excise tax evasion and money laundering scheme have reportedly agreed to plead guilty to federal charges.
Last year, a 114-count indictment filed in U.S. District Court charged 11 people in connection to the scheme, which involved an illegal sports betting organization.
The men charged include:
- Timothy J. Pughsley, 51, of Birmingham, Alabama
- Christopher Burdette, 30, of Chelsea, Alabama
- Nathanael Burdette, 36, of Birmingham, Alabama
- Jonathan Lind, 44, of Birmingham, Alabama
- Thomas V. Zito, 57, of Vestavia, Alabama
- Christopher Donaldson, 46, of Trussville, Alabama
- Gary L. Rapp, Jr., 44, of Lakeland, Tennessee
- Mark Giaquinto, 50, of Upton, Massachusetts
- Matthew D. Voorhees, 47, of Englewood, Colorado
- David Richards, 38, of Las Vegas, Nevada
- Joshua Gentrup, 36, of Athens, Georgia
The indictment alleged that Pughsley had begun operating a bookmaking business at least 17 years ago.
The organization, which eventually became known as “Red44,” operated bookmaking and betting activities online via an offshore server located in Costa Rica.
Defendants named within the indictment are alleged to be senior agents in the Red44 organization or original founding members.
The indictment goes on to allege that the organization accepted hundreds of millions of dollars in wagers from bettors between 2019 and 2021.
Over those three years, Red44 is alleged to have earned a total gross profit of nearly $75,000,000.
The excise tax owed to the Internal Revenue Service (IRS) during that time is estimated to be about $20 million, or 2% of total wagers placed by bettors.
According to reporting from WBRC, Donaldson, Lind, Zito, Gentrup, Richards, Voorhees, and Christopher and Nathanael Burdette have agreed to plead guilty to their charges and pay between $40,000 and $2 million to the IRS.
The other three defendants, including Pughsley, are reportedly still expected to go to trial.