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Feds seek 9 properties, $230K from Beaumont car dealer accused of illegal gambling

The federal government is seeking nine properties around Southeast Texas and more than $230,000 in cash from Beaumont car dealer Larry Tillery on accusations he's operated "an illegal gambling and money laundering enterprise," according to civil asset forfeiture documents obtained by KFDM/6 News on Fox. (KFDM file photo)

The federal government is seeking nine properties around Southeast Texas and more than $230,000 in cash from Beaumont car dealer Larry Tillery on accusations he's operated "an illegal gambling and money laundering enterprise," according to civil asset forfeiture documents obtained by KFDM/6 News on Fox.

Among the list of properties is the Daylight Motors dealership on the Eastex Freeway, which last month we reported was being searched by the Department of Homeland Security.

According to court documents, the Internal Revenue Service Criminal Investigations started looking into "the bookmaking and money laundering activities of (Tillery) and his associates" in April 2014. Homeland Security joined the investigation that July. The investigation included wiretaps and confidential informants. It also included searching the contents of collected garbage at his office and home.

There are also allegations of tax evasion.

"To date, the investigation has found that (Tillery) is operating illegal sports betting operation with bettors located nationwide," the April 5 court document states. "The investigation has also found evidence that (Tillery) is evading taxes associated with his gambling activities."

The documents indicate about $5.3 million in wagers from 24 betters were recorded in intercepted calls from September 2015 through December 2016.

The documents also indicate in 2014, Larry Tillery reported on his federal personal income tax return that he had gambling income of $11,920,070 and gambling expenses of $11,064,894. Federal law permits a gambler to deduct his gambling expenses up to the amount of his gambling winnings. That resulted in Tillery's claiming net gambling income of $855,176 on his 2014 federal income tax return.

An analysis of bank records, according to the affidavit, shows about $26,662,000 deposited into his bank accounts from casinos during 2014. About $13,940,000 was paid to casinos from bank accounts for Tillery and his businesses during the same time period. The casino withdrawals subtracted from the casino deposits resulted in net deposits of about $12,721,647. That figure is about $11,866,000 more than the $855,000 net gambling winnings reported on Tillery's personal federal income tax return. The approximate income tax rate of 39.6% would be applied to the $11,866,471.28 of suspected unreported gambling income resulting in an additional income tax due of $4,699,122.63.

The document goes on to implicate Tillery's wife, son and daughter as his "criminal associates."

As of Monday, no criminal charges had been filed against any of them.

KFDM/6 News on Fox contacted Tillery last week about these allegations. He declined comment at this time.

You can read the full 52-page document here:


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