TAX NEWS - March 2009

Delaware tax: Middletown Resident Indicted In Gambling Ring

(Wilmington, DE) – Patrick T. Carter, Director of Revenue, announced that on March 3, 2009 the grand jury for the Superior Court in New Castle County returned a 38-count indictment charging a Middletown man with multiple gambling offenses and tax evasion, arising out of an illegal gambling operation run out of his Middletown residence and for failing to report his profits as income.

William Shane Anderson, 38, was charged with one felony count and one misdemeanor count of attempting to evade tax, as well as an additional 36 counts involving gambling offenses, including providing a premises for gambling and possessing a gambling device.

The indictment alleges that from about July 2007 through February 2008, Anderson ran illegal poker games including illegally taking bets from both residents of Delaware and neighboring states and failing to pay taxes on profits earned. Anderson solicited players mostly by word-of-mouth or referrals and would send text-messages to players noting the date and time of the games.

Investigators say that Anderson collected payments from the gamblers who were required to pay a certain percentage of their wagers to the "house." In order to conceal the income, Anderson then allegedly deposited the proceeds into a bank account set up in the name D. V. Services.

The felony count carries a maximum penalty of five years in prison, and such fines and penalties as the court deems appropriate. The 37 misdemeanor counts each carry a maximum penalty of one year in prison and $2,300 in fines.

This case stems from an investigation conducted by the Middletown Police Department and the Delaware Division of Revenue's Criminal Investigation Unit, and was referred to the Delaware Attorney General's office for indictment and prosecution.

Anderson awaits arraignment and trial date in Superior Court in New Castle County.