Odessa businessman sentenced to 3 years in jail, forced to pay $7 million

MIDLAND -- An Odessa businessman has been sentenced after being found guilty of taking part in money laundering and tax evasion schemes.

According to the Department of Justice, in Midland on Wednesday a federal judge sentenced Jose Abelardo Dominguez, 40, to three years in federal prison.

Along with the prison term U.S. District Judge David Counts ordered Dominguez to pay $1,971,072.45 in restitution to the IRS, a $10,000 fine and a money judgment in the amount of $5,088,507.98.

Dominguez must also forfeit seven real estate properties in Ector and Midland counties, $375,000 seized from bank accounts, $140,000 seized from two of his Odessa properties and four vehicles.

Dominguez will be placed on supervised release for three years once his prison term is complete.

According to a release, an investigation by the FBI, IRS-CI, HSI and Texas DPS found that Dominguez was running an illegal sports wagering enterprise from 2011 to 2016.

The enterprise allowed gambles to place bets on games online. Any debts from gambling were payed to Dominguez through cash, checks, wire transfers and direct deposits. Authorities say that those funds were then used to buy real estate property and vehicles or to fund businesses.

During this time Dominguez created two businesses including Peps Properties in 2011 and Permian Basin Consulting, LLC in 2014 and used them and their bank accounts to launder money from the sports gambling.

Dominguez reportedly earned more than $2.3 million in gambling proceeds in just 2014.

On June 19, 2018 Dominguez pleaded guilty to one count of money laundering and one count of tax evasion.

Assistant U.S. Attorney William F. Lewis prosecuted this case on behalf of the Government.