Gambling Business Owner Sentenced to Prison for Tax Evasion

Columbia, South Carolina – On [undisclosed date], Larry W. Flynn, a/k/a “L.W. Flynn,” age 40, of Columbia, South Carolina, pleaded guilty in federal court to Operating a Gambling Business, a violation of 18 U.S.C. § 1955, and Evading Federal Taxes, in violation of 26 U.S.C § 7201.

Flynn operated a video-poker gambling business in violation of South Carolina gambling laws and evaded paying taxes on the money he made from his gambling business. Between 2010 and 2013, Flynn owned and ran Magic Minutes, a South Carolina company that placed video-poker machines in various locations, such as convenience stores, liquor stores, party shops, and bowling alleys.

Flynn had a substantial taxable income yet took various steps to evade his tax responsibility including not filing tax returns, operating a significant portion of his business and personal life in cash, and paying employees in cash.

Mr. Nettles stated the maximum penalty for operating a gambling business is imprisonment for 5 years and/or a fine of $250,000, and the maximum penalty for tax evasion is imprisonment for 5 years and/or a fine of $100,000.

The case was investigated by agents of the FBI, SLED, and IRS-CID. Assistant United States Attorneys Jim May and Jay Richardson are prosecuting the case, along with attorneys from the South Carolina Attorney General’s Office.

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