TYLER, Texas – A federal grand jury has returned a 33-count indictment charging a Tyler man for fraud schemes in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Derek Robert Hamm, 38, was named in an indictment returned by a federal grand jury in Tyler charging him with wire fraud, money laundering, violations of the Stolen Valor Act, using a fraudulent military discharge certificate, and being a felon in possession of firearms and ammunition. The Stolen Valor Act of 2013 makes it illegal to fraudulently wear medals, embellish rank, or make false claims of military service to obtain money, employment, property, or some other tangible benefit.
According to the indictment, Hamm held himself out to be a former member of the Army Special Forces who had served multiple tours of duty in Iraq, Afghanistan, and other countries. He claimed to have been awarded a Purple Heart, a Silver Star, and a Bronze Star for his service. In reality, Hamm received none of those awards. Hamm also falsely claimed to be related to Harold Hamm, the billionaire oilman in Oklahoma, which he claimed gave him access to financial resources and oil industry expertise.
The indictment alleges that Hamm’s persona of being a wealthy war hero helped him create an extensive network of friends who introduced him to potential investors. Hamm then defrauded those investors in schemes related to the oil and gas drilling industry. Hamm did not invest funds as promised. Instead, once Hamm received investors’ funds, he spent the money on lavish personal gifts, including nearly $500,000 on jewelry and vehicles for himself and his family.
The indictment also alleges that Hamm was a prohibited person in possession of firearms and ammunition. Hamm was convicted in Smith County in 2020 for theft of property, a state felony. As a felon, Hamm is prohibited by federal law from owning or possessing firearms or ammunition. Hamm was also convicted in 2005 for assault of a family member, a domestic violence misdemeanor under state law. According to federal law, Hamm is also prohibited from possessing firearms or ammunition due to his domestic violence conviction.
If convicted, Hamm faces up to twenty years in federal prison.
If you or someone you know has been a victim of Derek Robert Hamm, please contact the Federal Bureau of Investigation at 903-594-3503. Derek Robert Hamm is also known as D. Wayne Hamm II, Wayne Hamm, D. Wayne H., DW Hamm, and RD Hamm.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
This case is being investigated by the Federal Bureau of Investigation’s Tyler Field Office, with assistance from the Tyler Police Department, the Smith County Sheriff’s Office, the Phoenix Arizona Police Department, Smith County Adult Probation, the Texas Railroad Commission-Enforcement Division, Department of Veteran’s Affairs-Office of Inspector General, Texas Comptroller of Public Accounts-Criminal Investigation Division, and the United States Special Operations Command. This case is being prosecuted by Assistant U.S. Attorneys Robert Austin Wells and Ryan Locker.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
BEAUMONT, Texas – A Beaumont businessman, his wife, and son have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Larry Earnest Tillery, 70, Judy Kay Tillery, 63, and Brian Tillery, 47, all of Beaumont, pleaded guilty on June 25, 2019 to federal charges and were sentenced today by U.S. District Judge Thad Heartfield.
Larry Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity and tax evasion. Today he was sentenced to 33 months in federal prison. Tillery was ordered to pay restitution in the amount of $1,000,040.00 and to forfeit approximately $2 million in cash, jewelry, and sports memorabilia that were proceeds of his illegal gambling enterprise. A money judgment of $32,758,541.00 was also ordered by the court.
Judy Tillery pleaded guilty to structuring of financial transactions to evade reporting requirements and was sentenced to serve two years federal probation. Judy Tillery shares the forfeiture judgment with her husband.
Brian Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity and was sentenced to two years of federal probation. Brian Tillery was ordered to forfeit approximately $245,477.00 and a residence on Christina Court in Beaumont with an appraised value of approximately $600,000.00 that was determined to be proceeds of the illegal gambling enterprise. Additionally, a money judgment of $700,000.00, which represents the proceeds of the illegal gambling enterprise.
According to information presented in court, Larry Tillery was engaged in the business of accepting illegal wagers on sporting events from 1985 until April - 2017. Tillery owned and operated Daylight Motors, a used car dealership, and Lamar Capital, a holding company for Daylight Motors, and used these two companies as a front to launder illicit proceeds from his illegal gambling enterprise.
Larry Tillery used a website to receive and track wagers from his betting clients, allowing his bettors to place wagers on sporting events, including professional and collegiate basketball, baseball, and football games. Judy assisted her husband in laundering cash proceeds of his illegal gambling activities by depositing cash into her personal bank account at Beaumont Community Credit Union in Beaumont, Texas, and then writing checks to bank accounts controlled by her husband. Judy Tillery structured these cash deposits in amounts under $10,000 in an attempt to evade federal currency transaction reporting requirements.
Brian Tillery, Larry Tillery’s son, aided the bookmaking enterprise by collecting money from sports bettors; making payments to bettors on Larry’s behalf; checking the online wagers on a regular basis to make Larry aware of what bets were placed on which games; accepting illegal gambling funds from Larry and making wire transfers to pay illegal gambling debts for Larry; and mailing packages of currency in excess of $10,000 – derived from illegal gambling activities – via the United States Postal Service at the request of Larry.
Larry Tillery knew that despite the fact he was violating Texas state and federal law, federal tax law nonetheless required him to register as a bookmaker with the Internal Revenue Service and to file monthly excise tax returns to report total wagers he accepted during the month. Larry also knew that he was required to pay gross wagering excise taxes of 2% on wagers he accepted each month, but he failed to report or pay taxes to the IRS based on the wagers he accepted each month. From September through November of 2016, Larry Tillery accepted at least 450 wagers totaling $5,060,150. These wagers are subject to the 2% federal gross wagering excise tax, and Larry evaded gross excise wagering taxes of $29,717 in September 2016, $34,423 in October 2016 and $37,063 in November 2016 for a three month total of $101,203.
Between 2011 and 2016, Larry Tillery accepted at least $52 million in illegal wagers on sporting events. Larry did not report these wagers to the IRS or pay gross excise taxes. The gross wagering taxes that resulted from wagers Larry Tillery accepted between 2011 and 2016 total $1,040,000.
The investigation traced a total of 125 financial transactions in excess of $10,000 derived from illegal gambling that utilized the United States banking system. These financial transactions total $32,383,841 and occurred between 2010 and 2016.
“These sentences imposed today on the Tillery family demonstrate the Department’s commitment to hold criminal enterprises accountable,” said U.S. Attorney Stephen J. Cox. “Illegal gambling activity and tax evasion will not be tolerated in the Eastern District of Texas.”
“Today’s sentencing and forfeiture order are the culmination of a six-year multi-agency criminal investigation into one of the largest illegal sports gambling and money laundering operations in U.S. history,” said Mark Dawson, special agent in charge of Homeland Security Investigation (HSI) Houston. “Working together with our federal partners, we have successfully disrupted the Tillery family criminal enterprise and sent a message that we are united in our efforts to investigate and prosecute financial crimes.”
“Most individuals file truthful and accurate tax returns voluntarily and pay their fair share of taxes," said Gerardo Gomez, Acting Assistant Special Agent in Charge, IRS Criminal Investigation. "IRS Special Agents will continue to investigate individuals like Mr. Tillery, who gain illicit profits and evade their taxes at the expense of law-abiding taxpayers.”
This case was investigated by Homeland Security Investigations and the Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.
BEAUMONT, Texas - A Cuban national has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Victor Entenza, 30, pleaded guilty on May 10, 2021 to conspiracy to commit access device fraud and aiding and abetting aggravated identity theft. Entenza was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield.
“Typically, a skimmer, such as the one found in this case, is placed inside a gas pump and used by criminals to collect credit card information from victims using the pump,” said Acting U.S. Attorney Nicholas Ganjei. “The crime is difficult to detect because intended gas purchase will proceed without interruption or notification,” Ganjei added. “A single gas station skimmer is capable of storing credit card information for hundreds of victims.”
According to information presented in court, on Jan. 27, 2017, an officer with the Nacogdoches Police Department conducted a traffic stop on a vehicle driven by Entenza and occupied by Cuban nationals, Orlando Enrique Quesada-Oliva, 25, and Ricardo Chavez-Travieso, 29. During the traffic stop, the officer discovered a credit card bearing the name of third party, leading to a more exhaustive search of the car. During this search, the officer found a notepad that listed various gas stations in Texas, Tennessee, and Alabama, numerous cell phones, a laptop computer and tape used as a security seal/tamper indicator for gas station fuel pumps. The officer also located a card skimmer, an encoder, a key used to open gas pumps, and additional credit cards located in hidden compartments within the vehicle. Credit card information for nine individuals, none of whom were occupants the vehicle, was additionally found.
Entenza, Oliva, and Travieso were indicted by a federal grand jury on Oct. 8, 2020 and charged with federal violations. On July 12, 2021, Travieso pleaded guilty to conspiracy to commit access device fraud and aiding/abetting aggravated identity theft. Travieso is awaiting a sentencing date. The case against Oliva is still pending.
This case was investigated by the Nacogdoches Police Department and the Department of Homeland Security Investigations (HSI) and prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman.
BEAUMONT, Texas – A Beaumont businessman, his wife, and son have pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Larry Earnest Tillery, 69, Judy Kay Tillery, 62, and Brian Tillery, 46, all of Beaumont, appeared in federal court today before U.S. Magistrate Judge Keith F. Giblin to enter their pleas to an Information. Larry Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity and tax evasion. Judy Tillery pleaded guilty to structuring of financial transactions to evade reporting requirements. Brian Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity.
According to information presented in court, Larry Tillery was engaged in the business of accepting illegal wagers on sporting events from 1985 until April, 2017, and was his primary occupation during that time. Tillery owned and operated Daylight Motors, a used car dealership, and Lamar Capital, a holding company for Daylight Motors, and used these two companies as a front to launder illicit proceeds from his illegal gambling enterprise.
Tillery used a website to receive and track wagers from his betting clients, allowing his bettors to place wagers on sporting events, including professional and collegiate basketball, baseball and football games. Judy Tillery assisted her husband in laundering cash proceeds of his illegal bookmaking activities by depositing cash into her personal bank account at Beaumont Community Credit Union in Beaumont, Texas, and then writing checks to bank accounts controlled by her husband. Judy Tillery structured these cash deposits in amounts under $10,000 in an attempt to evade federal currency transaction reporting requirements.
Brian Tillery, Larry Tillery’s son, aided the bookmaking enterprise by collecting money from sports bettors and making payments to bettors on behalf of his father; checking the online wagers on a regular basis to keep Larry Tillery aware of what bets were placed on which games; accepting illegal gambling funds from Larry Tillery and making wire transfers to pay illegal gambling debts for Larry Tillery; and mailing packages of currency in excess of $10,000 via the United States Postal Service at the request of Larry Tillery, which was derived from illegal gambling activities.
Larry Tillery knew that despite the fact that he was violating Texas state and federal law, federal law nonetheless required him to register as a bookmaker with the Internal Revenue Service and to file monthly excise tax returns to report total wagers he accepted during the month. Tillery also knew that he was required to pay gross wagering excise taxes of 2% on wagers he accepted each month. But, Tillery failed to report or pay any taxes to the IRS based on the wagers he accepted each month. During September through November of 2016, Larry Tillery accepted at least 450 wagers totaling $5,060,150. These wagers are subject to the two percent federal gross wagering excise tax and Larry Tillery evaded gross excise wagering taxes of $29,717 in September 2016, $34,423 in October 2016 and $37,063 in November 2016 for a three month total of $101,203.
Between 2011 and 2016, Tillery accepted at least $52 million in illegal wagers on sporting events. Tillery did not report these wagers to the IRS or pay gross excise taxes. The gross wagering taxes that resulted from wagers Larry Tillery accepted between 2011 and 2016 total $1,040,000. This tax due figure includes $101,203 in gross wagering excise taxes listed above in this document for wagers accepted in September 2016 – November 2016.
The investigation traced a total of 125 financial transactions in excess of $10,000 derived from illegal gambling that utilized the United States banking system. These financial transactions totaled more than $32 million between 2010 and 2016.
As part of the plea agreement, Larry and Judy Tillery are agreeing to forfeit $1,738,455 in cash seized during the investigation; numerous luxury watches and pieces of jewelry; and several professional sports memorabilia items. They have also agreed to a money judgment of $32,758,541, representative of illegal wagers the Tillery sports gambling enterprise during the relevant time period.
“The Tillerys ignored state and federal gambling laws, and profited tremendously from a criminal enterprise,” said U.S. Attorney Joseph D. Brown. “We intend to collect every bit of the money judgment that will be issued against them, and we expect Larry Tillery’s prison sentence to send a message to those who profit from illegal bookmaking.”
“For more than 30 years this family operated one of the largest illegal sports gambling and money laundering operations in the U.S.,” said Assistant Special Agent in Charge (ASAC) Mary Magness, Homeland Security Investigations (HSI) Houston. “Today’s pleas underscore HSI’s commitment to aggressively investigate financial crimes and bring offenders to justice.”
“Concealing or transferring assets in an attempt to evade taxes is a crime, and IRS-CI is committed to prosecuting individuals that do so,” said Rusty Lee, Assistant Special Agent in Charge, IRS Criminal Investigation.
As part of his plea agreement, Brian Tillery agrees to forfeit $241,176 in U.S. currency seized during the investigation and a residence valued at approximately $600,000 located on Christina Court in Beaumont. He has also agreed to a money judgment of $700,000.
Under federal statutes, Larry Tillery faces up to 10 years in federal prison. Judy Tillery and Brian Tillery each face up to five years in federal prison. The maximum statutory sentences prescribed by Congress is provided her for information purposes, as the sentences will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case was investigated by Homeland Security Investigations and the Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY
Description: The code of the federal judicial circuit where the case was located
Format: A2
Description: The code of the federal judicial district where the case was located
Format: A2
Description: The code of the district office where the case was located
Format: A2
Description: Docket number assigned by the district to the case
Format: A7
Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3
Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3
Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5
Description: Case type associated with the current defendant record
Format: A2
Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18
Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15
Description: The status of the defendant as assigned by the AOUSC
Format: A2
Description: A code indicating the fugitive status of a defendant
Format: A1
Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD
Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD
Description: The date when a case was first docketed in the district court
Format: YYYYMMDD
Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD
Description: A code used to identify the nature of the proceeding
Format: N2
Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD
Description: A code indicating the event by which a defendant appeared before a judicial officer in the district court where a charge was pending
Format: A2
Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2
Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE1
Format: N2
Description: The four digit AO offense code associated with FTITLE1
Format: A4
Description: The four digit D2 offense code associated with FTITLE1
Format: A4
Description: A code indicating the severity associated with FTITLE1
Format: A3
Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5
Description: The date of the last action taken on the record
Format: YYYYMMDD
Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD
Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD
Description: The date upon which the case was closed
Format: YYYYMMDD
Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8
Description: A count of defendants filed including inter-district transfers
Format: N1
Description: A count of defendants filed excluding inter-district transfers
Format: N1
Description: A count of original proceedings commenced
Format: N1
Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants terminated including interdistrict transfers
Format: N1
Description: A count of defendants terminated excluding interdistrict transfers
Format: N1
Description: A count of original proceedings terminated
Format: N1
Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1
Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1
Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10
Description: A sequential number indicating the iteration of the defendant record
Format: N2
Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD
Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
BEAUMONT, Texas – A Beaumont businessman, his wife, and son have pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Larry Earnest Tillery, 69, Judy Kay Tillery, 62, and Brian Tillery, 46, all of Beaumont, appeared in federal court today before U.S. Magistrate Judge Keith F. Giblin to enter their pleas to an Information. Larry Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity and tax evasion. Judy Tillery pleaded guilty to structuring of financial transactions to evade reporting requirements. Brian Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity.
According to information presented in court, Larry Tillery was engaged in the business of accepting illegal wagers on sporting events from 1985 until April, 2017, and was his primary occupation during that time. Tillery owned and operated Daylight Motors, a used car dealership, and Lamar Capital, a holding company for Daylight Motors, and used these two companies as a front to launder illicit proceeds from his illegal gambling enterprise.
Tillery used a website to receive and track wagers from his betting clients, allowing his bettors to place wagers on sporting events, including professional and collegiate basketball, baseball and football games. Judy Tillery assisted her husband in laundering cash proceeds of his illegal bookmaking activities by depositing cash into her personal bank account at Beaumont Community Credit Union in Beaumont, Texas, and then writing checks to bank accounts controlled by her husband. Judy Tillery structured these cash deposits in amounts under $10,000 in an attempt to evade federal currency transaction reporting requirements.
Brian Tillery, Larry Tillery’s son, aided the bookmaking enterprise by collecting money from sports bettors and making payments to bettors on behalf of his father; checking the online wagers on a regular basis to keep Larry Tillery aware of what bets were placed on which games; accepting illegal gambling funds from Larry Tillery and making wire transfers to pay illegal gambling debts for Larry Tillery; and mailing packages of currency in excess of $10,000 via the United States Postal Service at the request of Larry Tillery, which was derived from illegal gambling activities.
Larry Tillery knew that despite the fact that he was violating Texas state and federal law, federal law nonetheless required him to register as a bookmaker with the Internal Revenue Service and to file monthly excise tax returns to report total wagers he accepted during the month. Tillery also knew that he was required to pay gross wagering excise taxes of 2% on wagers he accepted each month. But, Tillery failed to report or pay any taxes to the IRS based on the wagers he accepted each month. During September through November of 2016, Larry Tillery accepted at least 450 wagers totaling $5,060,150. These wagers are subject to the two percent federal gross wagering excise tax and Larry Tillery evaded gross excise wagering taxes of $29,717 in September 2016, $34,423 in October 2016 and $37,063 in November 2016 for a three month total of $101,203.
Between 2011 and 2016, Tillery accepted at least $52 million in illegal wagers on sporting events. Tillery did not report these wagers to the IRS or pay gross excise taxes. The gross wagering taxes that resulted from wagers Larry Tillery accepted between 2011 and 2016 total $1,040,000. This tax due figure includes $101,203 in gross wagering excise taxes listed above in this document for wagers accepted in September 2016 – November 2016.
The investigation traced a total of 125 financial transactions in excess of $10,000 derived from illegal gambling that utilized the United States banking system. These financial transactions totaled more than $32 million between 2010 and 2016.
As part of the plea agreement, Larry and Judy Tillery are agreeing to forfeit $1,738,455 in cash seized during the investigation; numerous luxury watches and pieces of jewelry; and several professional sports memorabilia items. They have also agreed to a money judgment of $32,758,541, representative of illegal wagers the Tillery sports gambling enterprise during the relevant time period.
“The Tillerys ignored state and federal gambling laws, and profited tremendously from a criminal enterprise,” said U.S. Attorney Joseph D. Brown. “We intend to collect every bit of the money judgment that will be issued against them, and we expect Larry Tillery’s prison sentence to send a message to those who profit from illegal bookmaking.”
“For more than 30 years this family operated one of the largest illegal sports gambling and money laundering operations in the U.S.,” said Assistant Special Agent in Charge (ASAC) Mary Magness, Homeland Security Investigations (HSI) Houston. “Today’s pleas underscore HSI’s commitment to aggressively investigate financial crimes and bring offenders to justice.”
“Concealing or transferring assets in an attempt to evade taxes is a crime, and IRS-CI is committed to prosecuting individuals that do so,” said Rusty Lee, Assistant Special Agent in Charge, IRS Criminal Investigation.
As part of his plea agreement, Brian Tillery agrees to forfeit $241,176 in U.S. currency seized during the investigation and a residence valued at approximately $600,000 located on Christina Court in Beaumont. He has also agreed to a money judgment of $700,000.
Under federal statutes, Larry Tillery faces up to 10 years in federal prison. Judy Tillery and Brian Tillery each face up to five years in federal prison. The maximum statutory sentences prescribed by Congress is provided her for information purposes, as the sentences will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case was investigated by Homeland Security Investigations and the Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY
Description: The code of the federal judicial circuit where the case was located
Format: A2
Description: The code of the federal judicial district where the case was located
Format: A2
Description: The code of the district office where the case was located
Format: A2
Description: Docket number assigned by the district to the case
Format: A7
Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3
Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3
Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5
Description: Case type associated with the current defendant record
Format: A2
Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18
Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15
Description: The status of the defendant as assigned by the AOUSC
Format: A2
Description: A code indicating the fugitive status of a defendant
Format: A1
Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD
Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD
Description: The date when a case was first docketed in the district court
Format: YYYYMMDD
Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD
Description: A code used to identify the nature of the proceeding
Format: N2
Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD
Description: A code indicating the event by which a defendant appeared before a judicial officer in the district court where a charge was pending
Format: A2
Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2
Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE1
Format: N2
Description: The four digit AO offense code associated with FTITLE1
Format: A4
Description: The four digit D2 offense code associated with FTITLE1
Format: A4
Description: A code indicating the severity associated with FTITLE1
Format: A3
Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5
Description: The date of the last action taken on the record
Format: YYYYMMDD
Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD
Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD
Description: The date upon which the case was closed
Format: YYYYMMDD
Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8
Description: A count of defendants filed including inter-district transfers
Format: N1
Description: A count of defendants filed excluding inter-district transfers
Format: N1
Description: A count of original proceedings commenced
Format: N1
Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants terminated including interdistrict transfers
Format: N1
Description: A count of defendants terminated excluding interdistrict transfers
Format: N1
Description: A count of original proceedings terminated
Format: N1
Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1
Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1
Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10
Description: A sequential number indicating the iteration of the defendant record
Format: N2
Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD
Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
BEAUMONT, Texas – A Beaumont businessman, his wife, and son have pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Larry Earnest Tillery, 69, Judy Kay Tillery, 62, and Brian Tillery, 46, all of Beaumont, appeared in federal court today before U.S. Magistrate Judge Keith F. Giblin to enter their pleas to an Information. Larry Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity and tax evasion. Judy Tillery pleaded guilty to structuring of financial transactions to evade reporting requirements. Brian Tillery pleaded guilty to engaging in monetary transactions in property derived from specified unlawful activity.
According to information presented in court, Larry Tillery was engaged in the business of accepting illegal wagers on sporting events from 1985 until April, 2017, and was his primary occupation during that time. Tillery owned and operated Daylight Motors, a used car dealership, and Lamar Capital, a holding company for Daylight Motors, and used these two companies as a front to launder illicit proceeds from his illegal gambling enterprise.
Tillery used a website to receive and track wagers from his betting clients, allowing his bettors to place wagers on sporting events, including professional and collegiate basketball, baseball and football games. Judy Tillery assisted her husband in laundering cash proceeds of his illegal bookmaking activities by depositing cash into her personal bank account at Beaumont Community Credit Union in Beaumont, Texas, and then writing checks to bank accounts controlled by her husband. Judy Tillery structured these cash deposits in amounts under $10,000 in an attempt to evade federal currency transaction reporting requirements.
Brian Tillery, Larry Tillery’s son, aided the bookmaking enterprise by collecting money from sports bettors and making payments to bettors on behalf of his father; checking the online wagers on a regular basis to keep Larry Tillery aware of what bets were placed on which games; accepting illegal gambling funds from Larry Tillery and making wire transfers to pay illegal gambling debts for Larry Tillery; and mailing packages of currency in excess of $10,000 via the United States Postal Service at the request of Larry Tillery, which was derived from illegal gambling activities.
Larry Tillery knew that despite the fact that he was violating Texas state and federal law, federal law nonetheless required him to register as a bookmaker with the Internal Revenue Service and to file monthly excise tax returns to report total wagers he accepted during the month. Tillery also knew that he was required to pay gross wagering excise taxes of 2% on wagers he accepted each month. But, Tillery failed to report or pay any taxes to the IRS based on the wagers he accepted each month. During September through November of 2016, Larry Tillery accepted at least 450 wagers totaling $5,060,150. These wagers are subject to the two percent federal gross wagering excise tax and Larry Tillery evaded gross excise wagering taxes of $29,717 in September 2016, $34,423 in October 2016 and $37,063 in November 2016 for a three month total of $101,203.
Between 2011 and 2016, Tillery accepted at least $52 million in illegal wagers on sporting events. Tillery did not report these wagers to the IRS or pay gross excise taxes. The gross wagering taxes that resulted from wagers Larry Tillery accepted between 2011 and 2016 total $1,040,000. This tax due figure includes $101,203 in gross wagering excise taxes listed above in this document for wagers accepted in September 2016 – November 2016.
The investigation traced a total of 125 financial transactions in excess of $10,000 derived from illegal gambling that utilized the United States banking system. These financial transactions totaled more than $32 million between 2010 and 2016.
As part of the plea agreement, Larry and Judy Tillery are agreeing to forfeit $1,738,455 in cash seized during the investigation; numerous luxury watches and pieces of jewelry; and several professional sports memorabilia items. They have also agreed to a money judgment of $32,758,541, representative of illegal wagers the Tillery sports gambling enterprise during the relevant time period.
“The Tillerys ignored state and federal gambling laws, and profited tremendously from a criminal enterprise,” said U.S. Attorney Joseph D. Brown. “We intend to collect every bit of the money judgment that will be issued against them, and we expect Larry Tillery’s prison sentence to send a message to those who profit from illegal bookmaking.”
“For more than 30 years this family operated one of the largest illegal sports gambling and money laundering operations in the U.S.,” said Assistant Special Agent in Charge (ASAC) Mary Magness, Homeland Security Investigations (HSI) Houston. “Today’s pleas underscore HSI’s commitment to aggressively investigate financial crimes and bring offenders to justice.”
“Concealing or transferring assets in an attempt to evade taxes is a crime, and IRS-CI is committed to prosecuting individuals that do so,” said Rusty Lee, Assistant Special Agent in Charge, IRS Criminal Investigation.
As part of his plea agreement, Brian Tillery agrees to forfeit $241,176 in U.S. currency seized during the investigation and a residence valued at approximately $600,000 located on Christina Court in Beaumont. He has also agreed to a money judgment of $700,000.
Under federal statutes, Larry Tillery faces up to 10 years in federal prison. Judy Tillery and Brian Tillery each face up to five years in federal prison. The maximum statutory sentences prescribed by Congress is provided her for information purposes, as the sentences will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case was investigated by Homeland Security Investigations and the Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY
Description: The code of the federal judicial circuit where the case was located
Format: A2
Description: The code of the federal judicial district where the case was located
Format: A2
Description: The code of the district office where the case was located
Format: A2
Description: Docket number assigned by the district to the case
Format: A7
Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3
Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3
Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5
Description: Case type associated with the current defendant record
Format: A2
Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18
Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15
Description: The status of the defendant as assigned by the AOUSC
Format: A2
Description: A code indicating the fugitive status of a defendant
Format: A1
Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD
Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD
Description: The date when a case was first docketed in the district court
Format: YYYYMMDD
Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD
Description: A code used to identify the nature of the proceeding
Format: N2
Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD
Description: A code indicating the event by which a defendant appeared before a judicial officer in the district court where a charge was pending
Format: A2
Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2
Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE1
Format: N2
Description: The four digit AO offense code associated with FTITLE1
Format: A4
Description: The four digit D2 offense code associated with FTITLE1
Format: A4
Description: A code indicating the severity associated with FTITLE1
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the second highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE2
Format: N2
Description: The four digit AO offense code associated with FTITLE2
Format: A4
Description: The four digit D2 offense code associated with FTITLE2
Format: A4
Description: A code indicating the severity associated with FTITLE2
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the third highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE3
Format: N2
Description: The four digit AO offense code associated with FTITLE3
Format: A4
Description: The four digit D2 offense code associated with FTITLE3
Format: A4
Description: A code indicating the severity associated with FTITLE3
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the fourth highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE4
Format: N2
Description: The four digit AO offense code associated with FTITLE4
Format: A4
Description: The four digit D2 offense code associated with FTITLE4
Format: A4
Description: A code indicating the severity associated with FTITLE4
Format: A3
Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5
Description: The date of the last action taken on the record
Format: YYYYMMDD
Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD
Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD
Description: The date upon which the case was closed
Format: YYYYMMDD
Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8
Description: A count of defendants filed including inter-district transfers
Format: N1
Description: A count of defendants filed excluding inter-district transfers
Format: N1
Description: A count of original proceedings commenced
Format: N1
Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants terminated including interdistrict transfers
Format: N1
Description: A count of defendants terminated excluding interdistrict transfers
Format: N1
Description: A count of original proceedings terminated
Format: N1
Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1
Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1
Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10
Description: A sequential number indicating the iteration of the defendant record
Format: N2
Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD
Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
