COLUMBUS — A Lewis Center man pleaded guilty Friday in U.S. District Court to defrauding the Internal Revenue Service through income tax evasion.
Kurt S. Kovaleski, 44, of Lewis Center, faces a maximum of 5 years in prison and a $250,000 fine, according to court officials.
According to court documents, between 2008 and 2011 Kovaleski was the sole owner and operator of Tahoe Net Enterprises LLC. Tahoe Net Enterprises LLC functioned as an “affiliate” or recruiter for online gambling establishments, court officials said.
In return for directing players to their website, online casinos paid a “rake” or commission fee to Tahoe Net Enterprises LLC. The “rakes” were collected by a third party operating in Europe and wire-transferred to a bank account owned by Tahoe Net Enterprises LLC. Between 2008 and 2011, Tahoe Net Enterprises LLC generated about $411,197 in total gross receipts, officials said.
Kovaleski failed to file a federal income tax return for the 2008-2011 income tax years. In an attempt to evade his income tax obligation, Kovaleski purchased assets through nominees, operated what the U.S. Attorney’s Office believes to be an illegal business, and maintained a cash lifestyle.
In total, Kovaleski attempted to evade $97,928 in income taxes due for the 2008-2011 tax years, officials said.
This case was prosecuted by Assistant U.S. Attorney Daniel A. Brown and was investigated by special agents of IRS-Criminal Investigation.
Information for this story was provided by the IRS.
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