ARTICLE: IRS targets Belize gambling operation

[Louis Cypher]

Friday, March 05, 2004

By Torsten Ove, Pittsburgh Post-Gazette


Federal prosecutors in Pittsburgh have filed papers to seize nearly $5 million from various corporate bank accounts in Belize as part of an ongoing Internal Revenue Service investigation of a gambling business in the Central American nation.

According to forfeiture documents in U.S. District Court prepared by IRS Agent Richard Schott, the agency is investigating CaribSports & Casino, Carib International and other corporate entities controlled by Jon R. Rogers of Toronto, Ohio; John A. Thorne of Tampa, Fla.; and Peter T. Mowad of the Aliquippa area in Beaver County.

The government of Belize froze the bank accounts in Belize at the request of the United States in February, but the Supreme Court in Belize has since ordered them unfrozen until prosecutors indicate when they plan to file charges.

The U.S. attorney's office would not comment beyond the court filings, nor would the IRS.

The seizure of the accounts forced the company to borrow money to pay its 80 employees in Ladyville, Belize, a Carib accountant told a Belizean news agency. He also said his company injects $4 million into the local economy every year.

The forfeiture request is the second filing here in the probe of CaribSports, which takes wagers online or over the phone from bettors in the United States.

Last year, federal prosecutors moved to seize gold coins, a silver block and more than $1.6 million in cash from Rogers, Thorne and Mowad.

The new forfeiture request names various corporations through which the three are accused of laundering gambling money and also names others involved, including Mowad's children, Lisa Hoying and Anthony Mowad, who are on the board of a Belizean company controlled by Mowad called Data Tech.

In addition, the filings name Mark Sembar, business manager and assistant secretary for the gambling company.

Rogers, Thorne, Mowad and others named and unnamed are under investigation for alleged unlawful transmission of wagering information, mail fraud, wire fraud and money laundering.

Since at least 1993 until this year, court papers indicate, the three men and others operated CaribSports in Antigua, Belize and the United States. The company moved to Belize from Antigua in 2000.

From locations in the Caribbean, Rogers, Thorne and Mowad or their employees accepted millions of dollars in wagers on sports events from bettors in the United States, either online or by phone, according to the IRS.

The men are also accused of diverting millions in illegal income from CaribSports and a gambling supply company they established in Florida for their own benefit.

In early June 2003, the Criminal Investigation Division of the IRS executed search warrants at Rogers' home and his warehouse in Ohio, Thorne's home in Tampa and several safe deposit boxes in Ohio and Pittsburgh.

In the Pittsburgh search on June 4, agents seized $700,000 from a safe deposit box controlled by Rogers at Citizens Bank on Steubenville Pike, in addition to 360 gold coins worth $122,400.

In Ohio, agents seized $400,000 in cash from a safe deposit box controlled by Rogers at Sky Bank and $400,000 from his box at National City bank.

The June 3 search of Rogers' warehouse turned up $45,000 in cash and a 100-ounce block of silver. Another $112,100 was taken from the Thorne home in Florida.

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(Torsten Ove can be reached at tove@post-gazette.com or 412-263-2620.)

[Railbird]

Feds have been on Rogers for decades

The charges make the Carib guys sound like criminals. In reality, they're the good guys and the Nazi-like U.S. Government is the criminal. If I were going to be involved in a sportsbook, I'd think seriously about renouncing my U.S. citizenship and buying citizenship in Panama or Nevis.

The truth is, it's hard to get out of U.S. citizenship, and if you say you want to do it for tax purposes, you might not be let out of the clutches of ever-greedy Big Brother.

The U.S. is the only major country in the world that taxes gambling income. Are they also the only one that taxes work or business income (over $70,000 per year) generated offshore?

[big action]

The June 3 search of Rogers' warehouse turned up $45,000 in cash and a 100-ounce block of silver. Another $112,100 was taken from the Thorne home in Florida.

$600 worth of silver? They are hardly the Bass Brothers.

[KidVegas]

Can anyone explain why those three did'nt see this coming? When the Jagr story broke you had to know the Nazi govt would be taking a close look at who was behind Carib.

[big action]

I believe that the current adminstration is completely out of control with their zeal to legislate morality. However, by comparing the United States to a "Nazi" government you are engaging in hyperbole which only placates those who share Marge Schott's philosophy.