Owner-operator of two Stark County skill games businesses sentenced to prison
A Florida man has been ordered to spend three years in prison for hiding his ownership and more than $2 million in revenue from two now-closed skill games parlors in Stark County.
Larry Dayton pleaded guilty in U.S. District Court in Cleveland in July to defrauding the government. He was sentenced Tuesday by Judge Donald Nugent.
Dayton failed to report to the IRS more than $2 million in income from the gaming parlors.
From 2009 through 2018, Dayton and others owned and operated what prosecutors described as illegal gambling businesses, the Skilled Shamrock and Redemption in Plain Township, according to court documents and statements made in court.
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As part of his guilty plea, Dayton admitted to conspiring with the other owners to defraud the IRS by filing false tax returns that omitted income he received from operations. He faced up to five years in prison.
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Court records indicate Dayton stopped participating in the daily parlor operations in 2013. Between 2013 and 2018, Dayton continued to receive a share of the profits from the businesses, in cash, even though he no longer was a declared owner.
Dayton admitted to fraudulently placing the gambling businesses in the names of others to conceal the true ownership interests of the others and himself.
Nugent also ordered Dayton to serve three years of supervised release and pay $938,000 in restitution.
Dayton's attorney declined comment.
Several others charged in fraud case
On July 14, Jason Kachner, of Canton, pleaded guilty to two counts of defrauding the U.S. government. His wife, Rebecca, pleaded guilty to one count of the same charge. Jason Kachner is set to be sentenced May 22 and his wife Jan. 24.
They admitted to failing to report illegal proceeds from the skill game establishments on their income tax returns. After unveiling an initial indictment in May 2021, prosecutors filed a second superseding indictment that referred to then-unnamed co-conspirators.
Christos Karasarides Jr., charged in June, and Ronald DiPietro, charged in 2021, have been indicted on federal felony charges of conspiracy to illegally operate a gambling business, defrauding the United States, and failing to pay owed federal income taxes. DiPietro has also been charged with helping to prepare a false and fraudulent income tax return.
Karasarides also has been indicted on conspiracy to commit money laundering, filing a false income tax return, witness tamping and falsifying records.
Karasarides' nephew, Thomas Helmick, charged in 2021, stands accused of operating an illegal gambling business, Redemption, defrauding the U.S. and filing false income tax returns.
Karasarides, Helmick and DePietro have all pleaded not guilty and are all due back in court for a pretrial hearing Dec. 29.
This article originally appeared on The Independent: Skill game owner sentenced to 3 years in prison for tax fraud
