Eleven defendants charged with felonies for running an illegal offshore gambling site known as Red44 may be nearing their sixth trial date continuance. A judge in the US District Court, Northern District of Alabama, had set a July 22 deadline to receive pretrial motions from defense counsel in USA vs. Timothy J. Pughsley, et al.
However, on July 15, Timothy J. Pughsley filed a motion for another continuance in the case against him. That case, related to Red44, first surfaced publically in early 2023.
On Jan. 6, 2023, the US Attorney’s Office, Northern District of Alabama, announced a grand jury outcome:
According to the indictment, Pughsley began operating a bookmaking business at least 17 years ago. The organization eventually became known as ‘Red44,’ and bookmaking and betting activities occurred online via an offshore server located in Costa Rica. Defendants named within the indictment are alleged to be senior agents in the Red44 organization or original founding members.
Authorities shut down the illegal site that had accepted “hundreds of millions of dollars in wagers from bettors from 2019 through 2021.” According to its disused X account, Red44 accepted sports bets and paid gamblers every Tuesday. Bonus also checked the domain on July 18 and found it selling for $7,895.
Previously, the 11 defendants charged in the 114-count indictment filed in January 2023 received continuances for scheduled appearances on five separate occasions:
- March 2023
- June 2023
- December 2023
- February 2024
- May 2024
Before each scheduled trial date, defense attorneys asked to delay the proceedings. They claimed to need more time to prepare due to the case’s complicated nature.
In addition to Pughsley, the defendants include Gary L. Rapp Jr., Mark Giaquinto, Matthew D. Voorhees, David Richards, Christopher Donaldson, Joshua Gentrup, Christopher Burdette, Nathanael Burdette, Jonathan Lind, and Thomas V. Zito.
However, Red44 is far from the only offshore gambling site to allegedly violate state law, as the grand jury alleged Pughsley’s site did. State gaming regulators have recently sent cease-and-desist letters to Harp Media, which owns Bovada. Colorado, Michigan, and West Virginia are newly among Bovada’s “restricted” states, perhaps prompted by the orders.
UPDATE: 07/23/24
The court continued the Red44 case against 11 defendants on July 22.
Judge Borden ordered no trial could begin before Oct. 7.
The federal district court order states:
As set out in the motions, the defendants’ attorneys will not be prepared to try the case on the August 2024 trial docket because the case is complex, and the defendants are actively negotiating a resolution of their charges.
Red44-Related Charges Were Always Complex
When the US Attorney’s Office unsealed the grand jury indictments in 2023, Pughsley alone faced 44 charges.
In the active case first filed on Feb. 24, 2022, Pughsley’s charges are:
- Conspiracy to operate an illegal gambling business
- Tax evasion
- Money laundering conspiracy
- Engaging in illegal monetary transactions
The other defendants also face felony charges.
In the Second Superseding Indictment filed on Sept. 27, 2022, it said the grand jury found:
The Red44 Organization operated similarly to a multi-level marketing business. As previously noted, bookmakers were paid a percentage of their subagents’ profits. As bookmakers grew the number of bettors within their down-line, their percentage of collected losses grew. Bookmakers also paid a percentage of collected losses to the Red44 Organization to pay for bookmaker conferences and player fees.
Case Continuance Orders Similar
On April 25, 2024, US Magistrate Judge Gray M. Borden‘s order explaining the latest continuance said:
As set out in the motions, the defendants attorneys will not be prepared to try the case on the May 2024 trial docket because the case is complex and the defendants are actively negotiating a resolution of their charges. The court finds on this showing that the ends of justice served by a continuance outweigh the best interest of the public and the defendant in a speedy trial.
The Feb. 1, 2023, order for a continuance was almost identical:
The defendants’ attorneys will not be prepared to try the case on the March 2023 trial docket because the discovery materials are voluminous, the charges are unusual, and the defendants intend to conduct their own investigation into the facts supporting the indictment. The court finds on this showing that the ends of justice served by a continuance outweigh the best interest of the public and the defendant in a speedy trial.
That April 2024 docket entry said there would be no new trial date until at least Aug. 5, 2024.
However, if the court grants Pughsley’s most recent request, it’s unclear when the trial will begin.
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