WICHITA, Kan - Two Wichita men have pleaded guilty to federal gambling and income tax charges.
67-year-old Danny Chapman pleaded guilty to one count of operating an illegal gambling business and one count of tax evasion. He admitted working as a sports bookmaker in the Wichita area, with at least five people working for him. He and his employees took bets on sporting events from clients and collected their losses, and they arranged for clients to place bets through online gambling web sites that were created and hosted in Costa Rica. Chapman failed to pay almost $345,000 in federal income taxes on his earnings.
46-year-old Daven Flax pleaded guilty to two counts of operating an illegal gambling business and one count of making a false statement on a tax return. Flax admitted to managing illegal poker games at a number of locations in Wichita, and his income came from taking a cut of the amount of money wagered. The games were only open to invited players. Prosecutors said Flax also worked as a bookie for Chapman's sports betting operation. Flax failed to pay more than $65,000 in federal income taxes on his earnings.
The two men will be sentenced at a later time. They're facing penalties of three to five years and fines up to $250,000.