BEAUMONT, Texas — The owner of Daylight motors, along with his wife and son, were sentenced in federal court.
Larry Earnest Tillery, 70, Judy Kay Tillery, 63, and Brian Tillery, 47, all from Beaumont, pleaded guilty June 25, 2019 to federal charges involving illegal online gambling and tax evasion.
All three were sentenced in federal court by U.S. District Judge Thad Heartfield Friday, June 12, Eastern District of Texas U.S. Attorney's Office spokesperson Davilyn Walston said in a news release.
Larry Tillery received 33 months in prison after pleading guilty to "engaging in monetary transactions in property derived from specified unlawful activity" and tax evasion. The court ordered him to pay back $1,000,040 and forfeit $2 million in cash, jewelry and sports memorabilia--all proceeds from his illegal gambling enterprise. The court also ordered a judgement of $32,758,541.
His wife, Judy Tillery, was sentenced to serve two years of federal probation after pleading guilty to structuring financial transactions to evade reporting requirements. She also shares the forfeiture judgement with her husband.
His son, Brian Tillery, was also sentenced to two years of federal probation after pleading guilty to "engaging in monetary transactions in property derived from specified unlawful activity." He was ordered to forfeit $245,477 as well as a house on Christina Court in Beaumont, valued at $600,000 since the house was determined to be proceeds of the illegal gambling enterprise.
“These sentences imposed today on the Tillery family demonstrate the Department’s commitment to hold criminal enterprises accountable,” U.S. Attorney Stephen J. Cox said in a statement. “Illegal gambling activity and tax evasion will not be tolerated in the Eastern District of Texas.”
Information presented in court showed Larry Tillery accepted illegal bets in sporting events from 1985 until April of 2017. He also owned and operated Daylight Motors, a used car dealership in Beaumont, and Lamar Capital, which was a holding company for Daylight Motors.
The evidence presented in court demonstrated he used both companies as a front to launder money from his illegal gambling, according to the U.S. District Attorney's Office.
During the trial, prosecutors demonstrated that Larry Tillery used a website to receive and track wagers from his clients, allowing to them to place bets on sporting events, including both professional and college basketball, baseball and football games.
His wife helped him launder the cash proceeds of the illegal online gambling by depositing the cash into her personal bank account at Beaumont Community Credit Union and then writing checks to her husband's bank accounts, according to the U.S. District Attorney's Office. Cash deposits were under $10,000 to avoid federal currency transaction reporting requirements.
His son helped with bookmaking, including collecting money from bettors and making payments on his father's behalf and checking online wagers so his father would know what bets were placed on which games, according to the U.S. District Attorney's Office. He accepted illegal gambling funds from his father and made wire transfers to pay his father's illegal gambling debts and mailed packages of cash in amounts over $10,000 through the U.S. Postal Service at his father's request.
Federal law would have required Larry Tillery to register as a bookmaker and file tax returns reporting wagers he accepted every month.
Court evidence showed he accepted at least 450 wagers totaling $5,060,150 just from September to November of 2016.
In a five-year period between 2011 and 2016, he accepted at least $52 million in illegal bets on sporting events and avoided paying $1,040,000 in taxes, according to the U.S. Attorney's Office.
The federal investigation into Daylight Motors traced 125 banking transactions over $10,000 from illegal gambling activity totaling $32,383,841 just between 2010 and 2016.
“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,” Homeland Security Investigation special agent Mark Dawson said in a statement. “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.”
The case was investigated by Homeland Security and the IRS.
“Most individuals file truthful and accurate tax returns voluntarily and pay their fair share of taxes," IRS special agent Gerardo Gomez said. "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.”