In a case that highlights the consequences of tax fraud, a man from Ohio has been sentenced to 20 months in federal prison.
This sentencing comes after he was found guilty of conspiring to defraud the IRS by failing to report income from illegal gambling operations he co-owned and operated.
The Gambling Scheme: A Decade of Deception
From 2010 to 2018, Jason Kachner of Canton, Ohio, worked with several others, including Christos Karasarides Jr., to run two illegal gambling businesses—Skilled Shamrock and Redemption.
Over the course of these years, patrons of Skilled Shamrock alone wagered more than $34 million, resulting in over $4 million in profits for Kachner and his partners.
To keep these profits hidden from the IRS, Kachner and his co-conspirators took elaborate steps.
They used a nominee owner to disguise their true ownership of the businesses and filed false tax returns that omitted a significant portion of their income.
Their actions resulted in a loss of $844,692 to the IRS.
The Legal Consequences: Jail Time and Financial Penalties
In addition to his 20-month prison sentence, Kachner will also face three years of supervised release following his time in prison.
Furthermore, he has been ordered to pay $1,393,024 in restitution to the U.S. government—a sum that covers the tax loss and additional penalties.
The Case Against Kachner: A Collaborative Effort
The announcement of the sentencing was made by officials from both the U.S. Department of Justice’s Tax Division and the Northern District of Ohio.
Various law enforcement and investigative agencies were involved in uncovering the fraudulent scheme.
These included IRS Criminal Investigation, the Stark County Prosecutor’s Office, the U.S. Department of Treasury Office of Inspector General, and others.
The case was prosecuted by attorneys from both the Justice Department’s Tax Division and the Northern District of Ohio, who successfully brought the charges against Kachner.
What Happens Next?
With the sentencing now behind him, Kachner will soon begin his prison term.
Meanwhile, federal agencies continue to crack down on similar schemes, sending a clear message that tax fraud and illegal gambling operations will not go unpunished.