California Man Sentenced for Illegal Offshore Gambling Business
LOS ANGELES, Calif. – A California man has been sentenced to 27 months in federal prison after admitting to operating an illegal offshore gambling business, evading taxes and laundering money.
LISTEN TO THIS ARTICLE:Jason Noah Feinman, of Calabasas, was sentenced after pleading guilty to tax evasion, operating an illegal gambling business and money laundering, according to the U.S. Department of Justice.
Federal prosecutors said Feinman operated a Costa Rica-based company that provided services to unlicensed gambling operators, allowing customers to place bets through websites he maintained.
Illegal Gambling Business Generated Millions
According to court documents, Feinman ran a website used by illegal gambling businesses to facilitate betting activity that violated state and federal law.
The operation generated millions of dollars in income over several years. Prosecutors said Feinman failed to properly report earnings from the business and evaded taxes on approximately $4.2 million in income between 2018 and 2022.
In one example cited by the Justice Department, Feinman earned about $1.8 million in 2020 but reported no taxable income to the Internal Revenue Service and paid no federal income tax for that year.
The case highlights ongoing federal efforts targeting illegal offshore gambling businesses operating outside licensed regulatory frameworks.
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Money Laundering Scheme Detailed
Authorities also said Feinman laundered proceeds from the gambling operation through a series of cash-for-check exchanges.
Between May 2018 and January 2024, Feinman allegedly provided more than $1.5 million in cash to one customer and received 18 checks payable to himself or his businesses in return.
Investigators estimated that the total value of such exchanges ranged between $1.5 million and $3.5 million.
Federal Agencies Led Investigation
The case was investigated by IRS Criminal Investigation and Homeland Security Investigations. Assistant Attorney General Colin McDonald of the Justice Department's National Fraud Enforcement Division and First Assistant U.S. Attorney Bilal A. Essayli for the Central District of California announced the sentence.
The prosecution was handled by attorneys from the Criminal Division's Tax Section. The conviction adds to a growing number of enforcement actions targeting unlicensed betting activity, including a recent illegal gambling club raid in Houston.
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