A real estate and finance attorney in Kentucky should have been familiar enough with the laws, and the repercussions of breaking them, to not get caught up in a major illegal operation. However, H. Harris Pepper of Bowling Green apparently thought he was above the law or smart enough to avoid being caught, and helped launder money tied to illegal online sports gambling operations. Pepper has now had his day in court and decided to cut a deal to avoid a potentially long jail sentence.
The Bowling Green Daily News reports that the 53-year-old attorney acknowledged that he was a willing participant in a number of illegal activities instigated by a partner, Douglas Booth. He collaborated with Booth from 2008 to 2016 to help wash hundreds of thousands of dollars that the latter was picking up from illegal gambling websites, many of which were run out of Costa Rica. Booth was using the proceeds to purchase a number of real estate properties, and Pepper, in his capacity as a real estate attorney, helped to cover up Booth’s ownership.
Knowing that Costa Rica has been, for many years, a hotbed for offshore gambling sites that target U.S. citizens, law enforcement departments have been monitoring the web to track those behind the sites. It wasn’t difficult to follow the digital trails and, after Booth’s operations were uncovered last year, investigators were able to determine Pepper’s involvement. Booth was charged last year with five counts of failing to file federal tax returns, four counts of money laundering and a single count each of conspiring to commit money laundering and illegal transmission of wagering information. He pleaded guilty to all charges.
The U.S. Attorney’s Office went after Pepper earlier this month, charging him with a number of crimes related to the illegal activity. However, when he went before U.S. District Judge Justin Walker yesterday, he had already worked out a deal to plead to one count of conspiracy to commit money laundering, allowing him to possibly receive a sentence significantly lighter than what would have otherwise been imposed. Due to the agreement, instead of 20 years behind bars, he could be looking at a maximum of 366 days.
Just because he entered the plea and made a deal to avoid spending his remaining years in prison doesn’t mean the judge has to agree. Walker is reportedly mulling over his options now, and will make a decision on whether or not to accept the arrangement over the course of the next three months. Pepper will return to face the judge on June 11 to learn his fate.
The case was investigated by several law enforcement divisions, including the FBI. According to U.S. Attorney Russell Coleman, “The rule of law means that everyone is held to the same standard, to include attorneys and influential members of communities like Bowling Green. This result is the product of a diligent career federal prosecutor and strong investigative work by the IRS.”
