Hazer Siblings, Joseph Mahfood Indicted in $250K Illegal Sports Betting Ring

St. Louis, MO – A high-stakes illegal sports betting operation run through a covert internet website has landed three people in federal crosshairs, with indictments unsealed today in the Eastern District of Missouri. At the center of the scheme: Samuel Douglas Hazer, 67, of Florence, Alabama; Carol Jean Hazer, 66, of Farmington, Missouri; and Joseph Mahfood, 63, of St. Louis, Missouri — all charged in a sprawling criminal enterprise that stretched across state lines and into real estate fraud.

The indictment alleges the trio organized and operated an illegal gambling business that facilitated large-scale sports wagering, using online infrastructure to conduct transactions and evade law enforcement scrutiny. Prosecutors say the operation wasn’t just a digital hustle — it was a structured criminal network that moved dirty money through financial systems, including the purchase of a house and a vehicle with illicit proceeds, violating federal laws on unlawful monetary transactions.

As the cash flowed, so did the lies. Two defendants, Samuel and Carol Hazer, are accused of filing false tax returns to conceal millions in unreported income generated by the betting ring. Meanwhile, Joseph Mahfood faces a perjury charge for allegedly submitting a fraudulent declaration under oath to the United States District Court — an act that, if proven, strikes at the heart of judicial integrity.

Charges against the three include illegal gambling business, interstate activity in furtherance of gambling, money laundering, unlawful monetary transactions, perjury, and filing false tax returns. Each count carries severe penalties: up to 20 years in federal prison and fines as high as $250,000. While the U.S. Sentencing Guidelines will ultimately shape any prison term, federal judges have little tolerance for organized financial crimes of this magnitude.

The takedown was the result of a joint probe by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation — a combination that signals both the technological reach and financial depth of the operation. Assistant United States Attorney Richard Finneran is leading the prosecution, building a case that hinges on digital trails, bank records, and sworn statements turned inside out.

As this case moves toward court, one fact remains: the charges are allegations. Samuel Douglas Hazer, Carol Jean Hazer, and Joseph Mahfood are presumed innocent until proven guilty. But in the world of underground betting rings and federal indictments, the house always collects — and the feds are now calling all bets off.