A Lewis Center man has been ordered by a federal judge to pay more than $97,000 in restitution to the IRS for committing income tax evasion.
Kurt S. Kovaleski, 44, of Lewis Center, was sentenced to six months in prison, three years of supervised release, of which six months will be served in home confinement, and was ordered to pay $97,928 in restitution to the Internal Revenue Service. Kovaleski pleaded guilty to tax evasion on Aug. 7.
The sentence handed down last week by U.S. District Judge Algenon L. Marbley, according to Carter M. Stewart, U.S. attorney for the Southern District of Ohio, and Troy N. Stemen, acting special agent in charge of the IRS Criminal Investigation’s Cincinnati field office.
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. 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 approximately $411,197 in total gross receipts.
Kovaleski failed to file a federal income tax return for the 2008-2011 income tax years, officials said. 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 about $97,928 in income taxes due for the 2008-2011 income tax years.
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 Internal Revenue Service.