It has been announced that two men from Wichita, Kansas have pleaded guilty to federal gambling and income tax charges. 67-year-old Danny Chapman pled guilty to a single count of operating an illegal gambling business and one count of tax evasion. 46-year-old Daven Flax pled guilty to two counts of operating an illegal gambling business and one count of making a false statement on a tax return. According to Chapman’s plea, he worked as a sports bookmaker in the Wichita area.
The defendant admitted to having at least five people working for him. The defendant and his partners took bets on sporting events and collected the clients’ losses. The clients were instructed to place bets through online gambling websites, which were created and hosted in Costa Rica. The defendant and his subordinates kept a portion of the money collection. The defendant managed to generate a gross revenue exceeding $2,000 in a single daily.
Chapman failed to pay nearly $345,000 in federal income taxes on his illegal gambling earnings. Meanwhile, Flax admitted to operating an illegal gambling business in Wichita. Flax conducted and managed illegal poker games at several Wichita locations. He earned an income by taking a cut of the amount of money wagered. He admitted to being responsible for paying employees, such as dealers, waitresses and caterers.
He also paid for the use of commercial properties where the games were held. Only invited players were able to partake in the events. Flax also worked as a sub-bookie for Chapman’s operation. Ultimately, Flax failed to pay at least $65,000 in federal income taxes on his illegal gambling earnings. The defendants are scheduled to be sentenced at a later date.