2 Las Vegas sports bettors plead guilty to illegal bookmaking

Two Las Vegas gamblers pleaded guilty in federal court Wednesday to running a lucrative illegal bookmaking operation.

Mitchell Garshofsky, 54, and Aaron Virchis, 31, each entered guilty pleas before U.S. District Judge Jennifer Dorsey to one felony count of operating an illegal gambling enterprise.

Prosecutors are seeking to recover roughly $1 million from the two men, who are free on their own recognizance.

Dorsey set a July 21 sentencing for Garshofsky, who called himself a professional gambler and sports bettor, and an Aug. 11 sentencing for Virchis, who said he has a masters degree in applied mathematics.

Garshofsky and Virchis, described as one of the biggest sports bettors in Las Vegas, were originally charged in 2013 with engaging in illegal chip transfers between their then-Cantor Gaming accounts at Strip casinos to avoid filing required currency transaction reports. Cantor Gaming has since changed its name to CG Technology.

Internal Revenue Agents leading a special financial crimes task force later uncovered evidence of the bookmaking operation, which according to the plea agreements involved the participation of offshore betting organizations.

The evidence was seized from Garshofsky’s home during a 2012 raid conducted by IRS and state gaming agents, the plea agreement said.

Agents learned from the raid that Garshofsky and Virchis had been communicating with known offshore betting operations, including Pinnacle, BetCris and Matchbook.

Garshofsky has agreed to forfeit to the government $244,108 in cash and property seized in the raid and Virchis is giving up $750,000, the plea agreement said. Virchis, who has dual citizenship in the United States and England, could wind up being deported after he serves his sentence.

The illegal currency transaction charges are being dismissed against both men as part of their plea deals.

They each were charged with one count of conspiracy to cause a domestic financial institution to fail to file an accurate currency transaction report.

By federal law, all financial institutions, including casinos, must file accurate reports of cash transactions above $10,000. The law is designed to combat money laundering.

From July 31, 2012, through Jan. 31, 2013, Garshofsky and Virchis tried to evade the reporting requirements by making more than $1 million in chip transfers between their Cantor Gaming accounts, the earlier complaint against the men alleged.

Seven of the transfers occurred at The Venetian and one at the Hard Rock, according to the complaint.

Chip transactions allow the transfer of funds between accounts without using cash.

Virchis also was accused of unlawfully transferring $300,000 worth of chips on Jan. 7, 2013, between his Cantor Gaming accounts at The Venetian and the Palms.

Federal agents suspected Garshofsky and Virchis were “settling up” outstanding wagers with an offshore sport book through the chip transfers.

Virchis also was alleged to have used phony Social Security numbers for currency transaction reports at Palace Station and Bellagio.