A man from Santa Monica, California, named Christopher Scott King, has admitted in court that he broke several serious laws. He was running an illegal gambling business, failed to pay the taxes he owed, and tried to hide where his money came from.
King set up a secret gambling operation in Los Angeles County. Instead of using a legal or licensed betting service, he worked through a sports betting website based in Costa Rica. This allowed him to avoid both California and U.S. laws. People used this foreign-based site to place bets on sports games, and it ran quietly for years.
This business was completely illegal. California law and federal law both say you can’t run a gambling operation without proper licenses. Despite this, Christopher Scott King made millions of dollars from it, operating in the shadows and keeping his activities hidden from authorities.
Hiding Millions From the IRS
Between 2019 and 2022, Christopher Scott King made more than $13.5 million from his gambling business. But he didn’t tell the government about it. On his tax forms, he gave false information, claiming he earned far less than he actually did.
In one example, King reported just over $143,000 as his income in 2022. In reality, he earned over $5 million that year alone. This kind of false reporting is called tax evasion, and it’s a serious crime.
7 Accused in $34M Drug Money Scheme Tied to Louisville Stores
Because of these lies, the IRS lost out on more than $3.8 million in taxes. That money could have helped pay for things like schools, parks, and roads. Instead, King kept it for himself and continued hiding his wealth from the government.
Laundering Money Through Gold and Real Estate
Christopher Scott King didn’t just hide the money—he also tried to make it look like it came from legal sources. This is called money laundering. It means taking “dirty” money, earned from illegal activity, and trying to clean it so it appears to be legitimate.
He laundered the money by using it to invest in real estate projects and to buy gold. He also moved the money into brokerage and financial accounts, trying to make it harder to trace. These moves were all part of a plan to cover up where his millions actually came from.
As part of his guilty plea, Christopher Scott King agreed to pay back nearly $14 million. This includes a $10 million personal money judgment of forfeiture, which must be paid at the time of sentencing. That means the government will take $10 million from him as part of the punishment. He will also be ordered to pay restitution and may face more financial penalties.
US Sanctions 13 Entities Involved in Sinaloa Cartel’s Money Laundering Scheme
King is now waiting for his sentencing, which is scheduled for September. For each of the crimes—operating an illegal gambling business, tax evasion, and accepting unlawful financial instruments—he could face up to five years in prison. For money laundering, he could face up to 10 years behind bars.
Government investigators from the IRS Criminal Investigation team and Homeland Security worked together to uncover the truth. Now, prosecutors from the Department of Justice are handling the case to make sure justice is served.
This case highlights how illegal businesses can operate in plain sight—and how law enforcement works to uncover them.
