Wichita man pleads guilty to paying no taxes on gambling income

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

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Specifically, Daniel Dreese, 65, pleaded guilty to two counts of making false statements on income tax returns, McAllister says.

The U.S. attorney says in his plea, Dreese admitted that he received more than $89,000 in 2011 and more than $136,000 in 2012 from illegal bookmaking and did not report that income.

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

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

Dreese's sentencing is set for April 23. The U.S. attorney says he faces up to three years in federal prison and a fine up to $100,000 on each count.

The U.S. Attorney's Office confirms Dreese's case is connected with a federal investigation centered around illegal gambling in Wichita.