North Shore Butcher Gets Prison Time, Must Pay $1.4M In Taxes For Illegal Sports Betting Business

Earlier this year, Dominic Poeta admitted to making over $3.7 million from an illegal sports gambling operation between 2012 and 2017.

Lawyers, on the other hand, claim that he has been consistently underreporting his income to the IRS for many years. One instance of this behavior is evident when he bought a $1.5 million house in Highland Park in 2008.

In that year, he filed a tax return with the IRS for less than $12,000.

US District Judge Matthew Kennelly sentenced Poeta to a term of imprisonment on Monday. Additionally, the 63-year-old must pay back the $1.4 million in taxes he owes.

Poeta, a barber at NorthShore, claimed that he frequently placed bets while on the job.

Kennelly said during the hearing, as reported by the Chicago Sun-Times:

Honestly, the sum of money in question is quite surprising. Additionally, it is likely a substantial underestimate.

By analyzing checks deposited into Poeta’s personal bank accounts after 2012, prosecutors calculated the $1.4 million amount. They believe that he had started placing bets and inaccurately reporting money before that time.

The extent of his actions and the money he made exceeded the charges brought against him, according to Assistant US Attorney Patrick King.

King’s letter also mentioned that Poeta was known to place bets on individuals, whether it be at his barber shop or various gambling establishments.

He claimed that a casino stole money from his family’s restaurant chain to pay off its debts, resulting in the restaurant being forced to shut down due to community backlash.

It is widely acknowledged that problem gambling frequently accompanies irresponsible gambling.

Not the first run-in with the authorities for Poeta

In 2007, Poeta was accused by federal authorities of engaging in bookmaking activities.

This refers to the situation involving Adam Resnick, who, as a compulsive gambler, was sent to prison for his role in a $10 million check-kiting scheme.

In 2002, the program caused the downfall of the Universal Federal Savings Bank.

Resnick’s book “Bust: How I Gambled Away my Wealth, Brought Down and Mdash, and Lived to Pay For It” was published in 2007.

He talks about Poeta, depicting him as a well-known high school athlete in his forties. In addition to his regular job, Poeta also ran a betting operation.

In 2018, Poeta was issued a subpoena by the IRS, but reports indicate that he continued to accept bets. He even notified a casino that the IRS had banned him from taking checks, but this did not stop him from engaging in his activities.

In August, Poeta admitted to submitting fake tax returns and providing details about illegal gambling activities. Instead of being incarcerated, Poeta and his legal team advocated for probation or house confinement as an alternative punishment.

The defense attorney, Thomas Breen, argued that Poeta is a remarkably kind and charismatic person who frequently assisted others in his community.

Poeta recommended to the prosecutor that he should serve his sentence by remaining in the current location, attending to his obligations, maintaining his job, and settling his debts.

In the end, the judge reached a different conclusion.

Illinois authorities have recently uncovered the latest illegal gambling operation in the state. Earlier this year, a scheme involving Casey Urlacher gained widespread media coverage.

The court proceedings are still in progress, but one man has already been sentenced.

Why a restricted market is preferable

Legal sportsbooks promote responsible gaming and offer assistance to those struggling with problem gambling through local services.

In this scenario, a gambler who has experienced years of continuous losses would frequently entrust Poeta, the doorman, with thousands of dollars in cash envelopes. It is difficult to imagine Poeta discouraging this behavior.

Additionally, if a bookmaker’s business is found to be in violation of the law, they can withhold rewards from their customers without consequences.