BIRMINGHAM, Ala. (WBRC) – Eight people accused of a multimillion-dollar excise tax evasion and money laundering scheme involving an illegal sports betting organization have agreed to plead guilty to federal charges, according to court records.

According to the U.S. Attorney’s Office, 11 defendants, including six from Alabama, are accused of operating an organization known as Red44, an illegal online sports betting organization with an offshore server in Costa Rica.

Red44 allegedly received millions of dollars in betting money over three years but failed to pay excise taxes, according to court records. Prosecutors say Red44 made $75 million in profits between 2019 and 2021 and did not pay nearly $20 million in excise taxes.

A 114-count federal indictment was filed in Birmingham in 2022 against the following individuals involved in the sports betting scheme:

• Timothy J. Pughsley51, from Birmingham
• Christopher Burdette30, from Chelsea
• Nathanael Burdette36, from Birmingham
• Jonathan Lind44, from Birmingham,
• Thomas V. Zito57, from Vestavia
• Christopher Donaldson46, of Trussville
• Gary L. Rapp, Jr.44, from Lakeland, Tennessee
• Mark Giaquinto50, from Upton, Massachusetts
• Matthew D. Voorhees47, of Englewood, Colorado
• David Richards38, from Las Vegas, Nevada
• Joshua Gentrup36, Athens, Georgia

Christopher Donaldson, Christopher Burdette, Nathanael Burdette, Jonathan Lind, Thomas V. Zito, Joshua Gentrup, David Richards, and Matthew D. Voorhees agreed to plead guilty to charges in the indictment and pay between $40,000 and $2 million to the IRS. according to court documents.

Three other defendants, including Timothy J. Pughsley, who owns Red44, is still expected to appear in court.

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