Wichita man pleads guilty to not paying taxes on illegal gambling

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Gambling (AP Photo/Julie Jacobson)

WICHITA, Kan. (KSNW) – A Wichita man who made hundreds of thousands of dollars from illegal bookmaking pleaded guilty Monday to failing to report the income on his federal income taxes, according to U.S. Attorney Stephen McAllister.

Daniel Dreese, 65, Wichita, Kan., pleaded guilty to two counts of making false statements on income tax returns. In his plea, he admitted that in 2011 he received $89,078 from illegal bookmaking, and in 2012 he received $136,985 from illegal bookmaking. He did not report that income.

In addition, he admitted that in 2010, he failed to report $383,684 in income.

In the plea agreement, Dreese agreed to pay $214,540 in restitution.

Sentencing is set for April 23. He faces up to three years in federal prison and a fine up to $100,000 on each count. McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Aaron Smith for their work on the case.