Probe into the Miccosukee's Gambling Profits

Naught, naughty. Bad boy. Bad boy.



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“IRS steps up probe of Miccosukee Tribe’s payouts of gambling profits to members”

(Miami Herald) The Internal Revenue Service has escalated its investigation into the Miccosukee Indians’ finances, demanding that the West Miami-Dade tribe hand over a mountain of internal records showing millions in allegedly unreported payments from its gambling profits to tribal members.

The IRS’ sweeping new action, which the Miccosukees are trying to stop in Miami federal court, seeks internal documents of the tribe’s gaming distributions during 2006-2010 as well as its council meeting records on tax matters from as far back as 1985.

The agency is demanding a long list of documents — from Miccosukee disbursement statements to check register reports, plus any tax advice from tribal lawyers and accountants. It’s part of an aggressive push to recover potentially tens of millions of dollars in back income taxes.

The tribe lashed out at the IRS.

“No longer is there even a pretense that the United States is not seeking to harass the Miccosukee Tribe and its members,” the tribe claims in court documents.

“The Miccosukee Tribe is not subject to income taxes, yet the IRS seeks all of its records based on sections of the [tax code] that do not even apply to the tribe,” wrote Miccosukee lawyer Bernardo Roman III in court documents.

Roman could not be reached for further comment Tuesday.

The federal agency’s legal battle with the Miccsosukees has been raging over the past decade, with the IRS winning a series of fights over access to the tribe’s financial accounts held by banks and other third parties. The tribe, which has tried to use its sovereign status to block the IRS’ civil probe, might now be on the hook for taxes owed by many of its 600 members.

The reason: The tribe’s status as a sovereign nation means the entity itself is not subject to taxes under federal law. But once the tribe distributes profits from its gambling casino to members, they are individually responsible for reporting and paying taxes on their annual income tax returns, according to the IRS. The tribe is also responsible for reporting and withholding a portion of any personal income distributed from its gambling enterprise featuring bingo-style slot machines and poker.

Earlier this year, the tribe admitted that more than 100 Miccosukee Indians owed the federal government about $25.8 million in back taxes, penalties and interest on income the tribe handed out from its gaming operation off the Tamiami Trail during 2000-05.

A federal judge has repeatedly sided with the IRS in its quest to obtain the tribe’s financial records. Last month, U.S. District Judge Alan S. Gold denied the tribe’s bid to block the IRS’ summons for Miccosukee financial accounts for 2010.

Gold said the U.S. government’s sovereignty was “superior” to that of the tribe, and therefore the Miccosukees must release their financial records held by Morgan Stanley Smith Barney, American Express, CitiBank and Wachovia.

Gold’s ruling was consistent with his previous decision ordering the tribe to turn over the same financial records for 2006-09.

The tribe has a long history of fighting the federal government over major issues ranging from income taxes to the cleanup of the Everglades.

But since the ouster of Miccosukee Chairman Billy Cypress in late 2009, the tribe has filed one lawsuit after another against the former leader and his inner circle of advisers, including two ex-U.S. attorneys in Miami who represented the Miccosukees.

In a federal suit filed last month, the tribe accused Cypress of stealing $26 million from the Miccosukees to spend on numerous gambling trips, shopping sprees, real-estate investments and luxury cars. The suit claims Cypress conspired with two former Miccosukee financial officers, former U.S. attorneys Dexter Lehtinen and Guy Lewis, and a Miami brokerage firm, Morgan Stanley Smith Barney, to keep the tribe in the dark about his alleged “criminal enterprise.”

The federal racketeering suit claims the tribe did not “discover this massive web of financial theft, embezzlement and fraud until 2010,” when Colley Billie replaced Cypress as the Miccosukee chairman.

The suit details a total of $11.5 million in ATM withdrawals by Cypress at casinos in Las Vegas and elsewhere, along with an additional $4 million in American Express charges for jewelry, restaurants and other expenses, between 2006 and 2009. Cypress also acquired nearly a dozen properties and residences, from Miami-Dade to Panama City Beach, worth a total of $4 million.

The tribe’s suit targeting him is the latest of his legal woes. In 2010, the IRS claimed that Cypress personally owed the government almost $2.8 million in taxes and penalties on $6.65 million in unreported income during 2003-05.

Say it ain't so, Joe

Shoeless Joe Jackson, a major star in the league, was on that legendary team, and I think this is where the phrase “Say it ain’t so, Joe” came from. It was said by a seven-year old fan hugging Jackson's pant leg after the news reports came out. He was pleading for his hero not to have been one of the cheaters that took the bribe. He was desperately trying to hold on to the illusion that excellence on the playing field implies excellence of character.

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“Corey Nachman and Dashiell Bennett; The 16 Most Legendary Stories of Gambling in sports; from Businessinsider.com)

The fixing of the 1919 World Series is still the most infamous sports gambling moment of all time.

Eight White Sox players were paid a total of $100,000 to purposely lose the Fall Classic, so gamblers could clean up betting on Cincinnati. The players were easily convinced due to their hatred of owner Charles Comiskey, who was notorious for underpaying his players.

Although the "Black Sox" — including the legendary "Shoeless Joe" Jackson — were found innocent of any crimes by a grand jury, Commissioner Kenesaw Mountain Landis banned them from baseball for life, a ban that stand to this day.

The Gambling Nun

Ever heard of the flying nun? Well, here is the story of the gambling nun.

Sad. This addiction too often brings out the criminal in us. She must feel like P the protagonist in All or Nothing.

(Associated Press. 07.08.13)

"NY Nun with Gambling Problem Gets Jail"

ALBION, N.Y. -- A Roman Catholic nun has been sentenced to 90 days in jail for stealing nearly $130,000 from two western New York parishes to support a gambling addiction.

Sister Mary Anne Rapp also was ordered at Monday's sentencing to perform 100 hours of community service and repay $128,000.

Rapp pleaded guilty to grand larceny in Orleans County Court in April. The 68-year-old admitted stealing from St. Mary's Church in Holley and St. Mark's Church in Kendall from 2006 to 2011. The thefts were discovered during an audit.

Investigators have said she stole the money to feed a gambling addiction and spent the money at western New York casinos.

The Sisters of St. Francis in Lewiston issued a statement expressing empathy for the two churches and continued support for Rapp.

Illegal Gambling LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOL

This next story from South Florida 6, an NBC affiliate down here in Florida, cracked me up.

But then it got me to thinking that maybe I should go to my dictionary to find out what "legal gambling" is.

Lololololol and, etc.

"Five Arrested in Raid on Suspected Gambling Operation in Miami-Dade"

For about a year, Miami-Dade Police say they investigated a tip alleging that sports gambling and slot machines, or "maquinitas," were illegally paying customers out of a Southwest Miami-Dade cafeteria.

Their investigation got hands on Wednesday, after a group of undercover officers raided the OK Minimarket on the 3000 block of Southwest 107th Avenue, arresting five suspects on several charges.

"In the rear section of the cafeteria, there were several coin-operated machines," Miami-Dade Police spokesman Alvaro Zabaleta said. "In fact, when the detectives were executing the search warrant, there were several people gambling once the officers entered the room."

Detectives seized several prohibited machines and over $4,000 in cash in the raid, which took several customers by surprise.

"I was having a soda, they walked in. I just visiting here," William Rhodes said.

"I come here to get coffee, but that's all," Chase Brewer added.

Though some customers were surprised, Jesus Abreu may not have been. He's been already arrested twice for illegal gambling and now has another to add to his record.

Authorities believe Abreu has a slot machine company, and though he reportedly recently named his wife, Odalys, as owner, it's alleged he was still running that business.

Mrs. Abreu said nothing as she was hauled into a Miami-Dade Police cruiser Wednesday.

Jesus Abreu, 64, and Odalys Abreu, 46, both face several gambling charges, including possession of prohibited coin-making machines, bookmaking, gambling and keeping a house of gambling.

Jail records showed Jesus Abreu was being held on $14,000 bond Thursday while Odalys Abreu was being held on $15,500 bond. It was unknown whether they have attorneys.

Three others were arrested as well. Angel Padron, 70, and Juan Martinez, 62, are both accused of gambling and being agents of running a house of gambling. Padron was being held on $13,000 bond while Martinez was being held on $15,500 bond.

Kenia Hernandez, 38, is facing a charge of obstruction of justice and resisting arrest without violence and was being held on $1,000 bond. It's believed she worked at the illegal gambling house.