Two brothers will spend time in federal prison for running an international sports betting ring.
A San Diego District judge sentenced the owners of “Macho Sports” for accepting high-stakes bets from gamblers throughout California, primarily in San Diego and Los Angeles.
Brothers Jan Harald, 42, and Erik Portocarrero, 44, face 18 months and 22 months in prison respectively and $50,000 fines each.
The Portocarreros must give up the $1.7 million they earned through Macho Sports, based in Lima, Peru, and forfeit the $10 million in profits. Sixteen other defendants must also do the same. Officials said when they ran the ring, the brothers took millions in bets from customers across the state.
"After running an international racketeering organization for two decades, Jan and Erik Portocarrero finally faced American justice today," U.S. Attorney Laura Duffy said in a statement. "Despite attempting to evade U.S. law enforcement by moving their sophisticated operations to Peru and Norway, they must now face substantial custodial sentences and millions in forfeitures. No longer can their global Macho Sports enterprise engage in violence, threats, and intimidation to amass illegal profits."
The FBI began investigating Macho Sports in 2011. They used wire taps and undercover agents to expose the businesses’ illegal gambling and intimidation tactics.
The brothers started the company in 1995 following the Super Bowl. They hired bookies in San Diego and Los Angeles to recruit customers, collect and pay bets. “Sub-bookies” and “runners,” who dealt directly with customers, kept up to several million dollars in cash in their homes and safe deposit boxes.
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Two years ago, FBI agents and Norwegian Police arrested 18 members of the organization and seized $10 million in illegal assets in a coordinated effort in San Diego, Los Angeles, and Norway.
While authorities arrested Jan in Los Angeles, Eric had to be extradited from Norway. All 18 involved pleaded guilty and have either been sentenced or are waiting to be sentenced.
"Today's sentencings mark the end of a sophisticated international gambling criminal enterprise that preyed upon the gambling addiction of its customers," said FBI Special Agent in Charge Eric S. Birnbaum in a statement. "It also reaffirms the FBI's commitment to working with our domestic and international law enforcement partners, integrating intelligence into our criminal investigations and dismantling sophisticated criminal enterprises such as Macho Sports."
The Portocarreros must report to prison at the end of the month.
