MEMPHIS, Tenn. (WREG) — A Lakeland, Tennessee man was indicted on federal charges in a multi-million dollar sports betting tax evasion scheme.
Gary L. Rapp Jr., 44, is among 11 defendants from across the country named by prosecutors in a 114-count indictment announced in January, the U.S. Attorney for the Northern District of Alabama says.
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Rapp 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, the Department of Justice said in a news release.
Prosecutors say the charges are related to an illegal sports betting site called Red44 that operated offshore from a server in Costa Rica.
From 2019 to 2021, Red44 allegedly made profits of $14 million, $24 million and $36 million per year. The excise taxes owed to the Internal Revenue Service on those profits would have totaled $6 million to $7 million annually, the DOJ said.
Prosecutors say Rapp was either a senior agent or founding member of Red44. One of the defendants started the wagering service 17 years ago.