Californian Sentenced in $4M Offshore Gambling and Money Laundering Case

Summary:

• A Californian was sentenced to 27 months for operating an illegal offshore gambling business.
• Prosecutors said the operation generated more than $4 million in income and involved money laundering.
• Authorities say the scheme was uncovered through a joint IRS and Homeland Security investigation.

A California man has been sentenced to more than two years in federal prison after authorities revealed a lengthy illegal offshore gambling operation that generated millions of dollars in untaxed income.

He Pleaded Guilty

Jason Noah Feinman of Calabasas was sentenced to 27 months in prison after pleading guilty to operating an unlicensed gambling business, money laundering, and tax evasion tied to more than $4 million in earnings, according to the U.S. Department of Justice.

Federal prosecutors said the 52-year-old managed an online betting operation based in Costa Rica that ran for several years, processing wagers through websites he controlled.

Investigators from the IRS Criminal Investigation unit and Homeland Security Investigations tracked the scheme from 2018 to early 2024.

Authorities caim the business was not a traditional gambling platform but instead ran as a unlicensed betting network that enabled customers to place wagers through offshore systems outside of U.S. regulation.

According to court filings, Feinman also laundered millions of dollars in gambling proceeds by converting cash into checks issued to himself or shell companies.

In one instance highlighted by investigators, he allegedly exchanged $1.5 million in cash with a customer for a series of checks that matched the same value, a transaction prosecutors described as part of the money laundering operation.

$1.3M in Restitution Plus Fine

Alongside his prison sentence, Feinman was ordered to pay more than $1.3 million in restitution and a $150,000 fine, along with interest.

He had previously entered into a plea agreement and formally admitted guilt earlier this year. His sentencing took place in federal court in Los Angeles.

Officials said the case reflects ongoing efforts by federal agencies to target offshore gambling networks that operate outside U.S. oversight while generating significant untaxed revenue.

Prosecutors emphasized that the investigation relied on coordination between multiple agencies, including IRS Criminal Investigation and Homeland Security Investigations, which continue to monitor illegal online gambling activity with international links.