The U.S. Attorney’s Office for the Northern District of Alabama announced Wednesday that ten men have pleaded guilty in connection with managing a multi-million-dollar illegal sports-betting operation. The defendants, who were part of a sprawling network known as “Red44,” admitted to charges of illegal gambling and money laundering before U.S. District Judge Madeline Haikala.
The guilty pleas mark the culmination of a long-running investigation led by the U.S. Attorney’s Office for the Northern District of Alabama in coordination with the Internal Revenue Service Criminal Investigation (IRS-CI) and multiple law enforcement agencies.
According to court documents, Timothy Pughsley began the operation at least 17 years ago, which later evolved into the Red44 bookmaking network. The organization conducted its activities online through an offshore server based in Costa Rica, allowing it to accept more than $2 billion in wagers over its existence.
“These guilty pleas are the result of years of hard work by federal and state law enforcement,” said U.S. Attorney Prim F. Escalona. “The defendants illegally accepted millions of dollars in wagers and lived lavishly while avoiding their tax obligations. We will diligently pursue those who enrich themselves in violation of the law.”
IRS-CI Special Agent in Charge Demetrius Hardeman emphasized the broader impact of the scheme.
“Excise tax evasion and illegal sports betting are not victimless crimes,” Hardeman said. “Money obtained from illegal gambling operations is often used to finance other criminal activities. IRS-CI agents are skilled at following the money to expose and dismantle these organizations.”
The defendants, all identified as senior agents within Red44, admitted to conspiring to operate the illegal betting business and participating in a money laundering conspiracy. As part of their plea agreements, they agreed to pay $19.7 million in excise tax restitution to the IRS and resolve any outstanding income tax obligations.
The defendants include:
- Timothy J. Pughsley, 53, and Nathan Burdette, 39, of Birmingham, Alabama
- Christopher Burdette, 32, of Chelsea, Alabama
- Thomas Zito, 59, of Vestavia, Alabama
- Gary Rapp, 46, of Lakeland, Tennessee
- Mark Giaquinto, 52, of Upton, Massachusetts
- Matthew Voorhees, 49, of Englewood, Colorado
- David Richards, 39, of Las Vegas, Nevada
- Joshua Gentrup, 38, of Athens, Georgia
- Jonathan Lind, 46, of Birmingham, Alabama
Sentencing hearings are scheduled for May 2025.
The case was investigated by IRS-Criminal Investigation and Homeland Security Investigations, with significant support from the Vestavia Hills Police Department, Shelby County Sheriff’s Office, Alabama Department of Revenue, and the FBI.
Assistant U.S. Attorneys Catherine Crosby, Kristen Osborne, and Ryan Rummage are prosecuting the case.
