The scheme caused an estimated tax loss to the IRS of $3.8 million, officials said
A Santa Monica man has pleaded guilty to operating an illegal gambling business, evading millions in taxes, and laundering money through real estate and gold investments, federal prosecutors said Tuesday.
Christopher Scott King admitted in court to running a large-scale bookmaking operation using a Costa Rica-based sports betting website to facilitate illegal wagers on sporting events, in violation of California and federal law, according to the U.S. Department of Justice.
King is scheduled to be sentenced on Sept. 9. He faces up to five years in prison for each count of tax evasion, operating an illegal gambling business, and accepting financial instruments for unlawful internet gambling, as well as up to 10 years for money laundering.
Between 2019 and 2022, King failed to report more than $13.5 million in income to the Internal Revenue Service, prosecutors said. In 2022 alone, he claimed just $143,258 in taxable income, while actually earning over $5 million that year.
King also admitted to laundering money by funneling proceeds from the gambling operation into real estate development ventures and gold purchases. Prosecutors said he used the illicit funds to bolster brokerage and financial accounts.
As part of a plea agreement, King will pay $10 million in forfeiture at sentencing and has agreed to restitution totaling nearly $14 million. The scheme caused an estimated tax loss to the IRS of $3.8 million, officials said.
