Michigan authorities have charged a Southfield man with eight felonies for taking advantage of a Caesars Sportsbook vulnerability that allowed him to make over $2 million in fictitious deposits. Per the Michigan Gaming Control Board (MGCB), over 16 days in 2023, Saco allegedly placed nearly 10,000 bets and wagered more than $88 million. Later, Saco reportedly transferred more than half a million dollars into his bank account before abandoning Caesars’ platform.
The MGCB said the charges resulted from an extensive joint investigation with the Michigan Department of Attorney General. The investigation got underway after Caesars notified the MGCB that an account holder allegedly used his sportsbook account for fraudulent activities.
According to the media release, Jeffrey Saco, 38, deposited over $2 million into his Caesars Sportsbook account by exploiting an unidentified vulnerability.
It’s not the first time a US online gambling site has been hacked, but the attackers rarely escape justice for long. A Wisconsin man was arrested last year for a hack on DraftKings that allegedly resulted in the theft of $600,000 from users’ accounts.
MGCB Executive Director Henry Williams said the board takes enforcement of Michigan’s gambling laws and regulations extremely seriously.
To that end, I appreciate the collaborative partnership the agency has with the Michigan Attorney General’s Office and industry personnel at Caesars Entertainment—who initially notified us about this situation. It is important to remember that this individual who is facing charges has the right to due process and is presumed innocent until proven guilty. With that being said, we will now let the judicial system determine the truth in this matter and the veracity of the charges.
Charges Include Larceny, Cyber Crime
Lathrup Village Police arrested Saco on Sept. 4. Agents of the Michigan Department of Attorney General Criminal Investigation Division then transferred him to the Grand Traverse Sheriff’s Department in Traverse City. He was arraigned on Sept. 5 in Traverse City’s 86th District Court and released on a $500,000 personal bond.
An arrest warrant issued for Saco details the eight felonies he’s facing.
- Larceny (Theft) by Conversion: 1 count
- Gambling Activity-Felony Violation: 3 counts
- Using a Computer to Commit a Crime: 4 counts
For the first count, Michigan Penal Code Section 362 (MCL 750.362) states that larceny by conversion occurs when someone embezzles or unlawfully converts money, goods, or other property entrusted to them. Penalties tie to the value of the stolen property.
For values over $20,000 or defendants with prior larceny convictions, the sentence could be up to 10 years. There’s also a fine of up to $15,000 or three times the value of theft—whichever is greater.
For counts 2-4, the Michigan Gaming Control and Revenue Act 432.218 deems each felony count punishable by imprisonment for up to 10 years, a fine of not more than $100,000.00, or both. If guilty, the person cannot receive or maintain a gambling license.
For the final four counts, MCL 752.796 says each is punishable by up to 10-20 years and/or a $10,000 fine.
Considered together, Saco could face a lengthy prison stint and hefty fines.
AG, MGCB Work Together to Uphold State Laws
In the release, Michigan Attorney General Dana Nessel spoke about working with the MGCB to enforce Michigan laws.
My office not only works alongside the Michigan Gaming Control Board to enforce our state laws prohibiting illegal gaming operations, we also partner to prosecute criminals taking advantage of legitimate gaming venues. I appreciate our partnership with the Michigan Gaming Control Board and share their dedication to enforcing our state’s gaming laws.
Michigan will hold a preliminary examination hearing on the matter on Friday, Oct.4 at 11 a.m. A probable cause conference took place last Friday.
Michigan encourages citizens to report suspected illegal gambling to the MGCB via phone (1-888-314-2682) or email ([email protected]).
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