A tax preparer from New Jersey has been sentenced to 57 months in prison for his involvement in a $4.49 million gambling fraud scheme.
Omar Khater of Fairfield, New Jersey was charged for using stolen identities to falsely declare gambling winnings on tax returns and obtain refunds from the Internal Revenue Service (IRS). Working alongside his relative, Walid Khater, the duo filed fraudulent tax returns using victims' names and personal information without their consent.
The false submissions led to the U.S. Treasury making refunds totaling $4.49 million, which the Khaters and their associates directed into various bank accounts in N.J. and elsewhere. U.S. District Judge Brian R. Martinotti also ordered restitution of the full amount.
“Omar Khater has admitted his role in an elaborate scheme that used stolen personal identifying information and fabricated tax returns to bilk the IRS of millions of dollars,” wrote U.S. Attorney Philip R. Sellinger in a statement. “He and a relative submitted tax documents falsely claiming that the taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings.”
Khater pleaded guilty in a Newark federal court in January this year to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. His conspirator confessed to the same offenses in May.
This case highlights the ongoing challenge of identity theft in financial transactions, including those involving NJ online casinos, which have been legal since November 2013.
Zivhas been deep in the iGaming trenches for over 20 years, long before most people could spell "geolocation compliance." With a background in marketing and business development at some of the biggest names in gambling tech, Ziv knows the industry from the inside out. Since joining Covers, he's turned his sharp eye (and sharper keyboard) toward everything happening in the fast-moving world of online gambling. Whether it's new state launches, the latest twists in regulation, or what the big operators and game providers are cooking up next, Ziv breaks it all down with clarity, context, and just the right amount of snark. He covers the business side of betting, from affiliate trends and revenue reports to the tech powering your favorite slots. His motto in writing is “let’s make it make sense without putting you to sleep.”
When he’s not tracking gambling legislation or looking for the next breaking story, Ziv is living and dying with every pitch and play from his beloved Pittsburgh Steelers, Pirates, and Penguins. As a Pitt graduate, it’s a city loyalty forged in heartbreak, but one he wouldn’t trade for anything, except maybe a few more playoff wins.
When away from the keyboard, Ziv loves to hit the road and soak up the energy of casinos. Whether strolling the neon jungle called the Vegas Strip, or wandering into a smoky riverboat casino in the Midwest, Ziv’s in his element. He’s the guy chatting with players, blackjack dealers, and asking pit bosses way too many questions, all in the name of “research,” of course. The casino floor isn’t just his workplace, it’s a weird and wonderful ecosystem of flashing lights, wild characters, and pure sensory overload, and he wouldn’t have it any other way.
If you choose to make use of any information on this website including online sports betting services from any websites that may be featured on
this website, we strongly recommend that you carefully check your local laws before doing so.It is your sole responsibility to understand your local laws and observe them strictly.Covers does not provide
any advice or guidance as to the legality of online sports betting or other online gambling activities within your jurisdiction and you are responsible for complying with laws that are applicable to you in
your relevant locality.Covers disclaims all liability associated with your use of this website and use of any information contained on it.As a condition of using this website, you agree to hold the owner
of this website harmless from any claims arising from your use of any services on any third party website that may be featured by Covers.
