DANVERS — A former bookie from Danvers has pleaded guilty to money laundering, gambling and tax fraud charges, federal prosecutors announced.
John Giannelli Sr., 66, could face up to 40 years in prison when he’s sentenced on Jan. 3.
Ginannelli ran a computer-based sports betting operation out of his homes in Peabody and later, Kingston, N.H., between 2003 and 2007, prosecutors in U.S. District Court in Concord, N.H., told a judge during a hearing last Thursday.
The prosecutors said in court that Giannelli’s operation involved user identification and passwords, which allowed bettors to place wagers with agents online. All of the activity was being remotely monitored by Giannelli, said the prosecutors, according to a press release from the U.S. Attorney in Concord.
Approximately $452,000 of the proceeds were then “laundered” through a scheme in which Giannelli was listed as an employee of one customer’s business. The cash he was making through his bookmaking business was then handed over to the customer, who generated paychecks to Giannelli so that the money would appear legitimate, prosecutors said.
The business also generated phony W-2 statements that Giannelli used to file fraudulent tax returns, prosecutors said.
The case was investigated jointly by the FBI and the IRS, according to a press release from the US Attorney in New Hampshire.
Courts reporter Julie Manganis can be reached at 978-338-2521, via email at email@example.com or on Twitter @SNJulieManganis.