Eight Indicted in Alabama’s Multi-Million Dollar Illegal Sports Betting Scheme Plead Guilty
- - Eight people have agreed to plead guilty to federal charges related to a large excise tax evasion and money laundering scheme involving an illegal sports-betting organization.
- Attorney’s Office reported that 11 defendants, six of whom are from Alabama, allegedly operated an organization called Red44.
- A 114-count federal indictment was filed in Birmingham in 2022.
BIRMINGHAM, Ala. – Eight people have agreed to plead guilty to federal charges related to a large excise tax evasion and money laundering scheme involving an illegal sports-betting organization.
The U.S. Attorney’s Office reported that 11 defendants, six of whom are from Alabama, allegedly operated an organization called Red44. This organization, based online with a server in Costa Rica, allegedly took millions in betting money without paying excise taxes. From 2019 to 2021, Red44 reportedly made a profit of $75 million and failed to pay nearly $20 million in excise taxes.
A 114-count federal indictment was filed in Birmingham in 2022. The following individuals are named in the indictment:
- Timothy J. Pughsley, 51, of Birmingham
- Christopher Burdette, 30, of Chelsea
- Nathanael Burdette, 36, of Birmingham
- Jonathan Lind, 44, of Birmingham
- Thomas V. Zito, 57, of Vestavia
- Christopher Donaldson, 46, of Trussville
- 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
Three defendants, including Timothy J. Pughsley, who owned Red44, are set to go to trial.