A California man who admitted operating an illegal offshore gambling business, laundering cash proceeds, and evading federal income taxes on more than $4 million in income has been sentenced to 27 months in federal prison and ordered to pay $1.47 million in fines and restitution.

Jason Noah Feinman, 52, of Calabasas, was sentenced after pleading guilty to one count each of tax evasion, operating an illegal gambling business, and money laundering. The case centered on a Costa Rica-based operation that federal prosecutors said helped illegal gambling businesses take bets from customers, including customers in California, through websites Feinman maintained.

Gambling and Money Laundering

Feinman’s business was not a gambling website in the traditional sense—you didn’t visit his site to play the odds. Rather, prosecutors said that unlicensed and illegal gambling businesses allowed their customers to place bets through websites that Feinman controlled. That conduct violated both state and federal laws.

The operation generated substantial cash, and Feinman took steps to conceal it, typically by exchanging cash for checks. Between May 2018 and January 2024, Feinman gave one customer more than $1.5 million in cash and received 18 checks payable to him or his businesses for that amount. In total, prosecutors said, he exchanged between $1.5 million and $3.5 million in cash for checks, which formed the basis of the money laundering charge.

Money laundering is the........

© Forbes