A recent federal indictment has linked nine properties in the Trussville entertainment district to a massive tax evasion scheme. The 56-page indictment charges 11 people with conspiring to evade paying nearly $20 million in federal excise taxes from a lucrative sports betting operation called Red44. Lead defendant Timothy Pughsley faces 38 charges in the case. He also owns 30 percent of Downtown Trussville LLC, the company developing the entertainment district. Prosecutors outlined 30 property seizures they could attempt as punishment, in addition to various bank accounts tied to the defendants. Nine of the parcels are in the Trussville Entertainment District, which currently houses shops and restaurants. Nearly $20 million of the City of Trussville’s own funds were used for the project. Mayor Buddy Choat said, “It’s paid dividends. Not just that area, but our entire downtown area and beyond. We’ve had a lot of new businesses come here because they see Trusville as a place to be. The efforts of the previous development.” The developer’s lawyer, Jay Smith, told the venue it should be fine. “I believe we’re going to have open business and we’re going to move forward with our plans for the area,” Choate said. Retired federal judge John Carroll said several steps must be taken before any property can be criminally forfeited. First, Pughsley must be convicted, and prosecutors must prove that illegal proceeds were used on property or that the package was used to commit the crime. The law does protect the primary property owner in such situations, Carroll said. “Innocent buyers can come to court and say, ‘Wait a minute, we don’t know anything about this. Forfeiting property is wrong, we don’t deserve to lose our property,'” Carroll said. Smith said Pughsley was a passive investor in the project and the developer had no knowledge of his alleged crimes. “We do not believe the indictment or allegations will have any impact on the development of the downtown Trussville area, or the businesses that operate there,” Jay Smith said. Pughsley and nine other defendants will be arraigned in federal court on Thursday morning.
A recent federal indictment has linked nine properties in the Trussville entertainment district to a massive tax evasion scheme.
The 56-page complaint accuses 11 people of conspiring to evade nearly $20 million in federal excise tax payments from the lucrative sports betting business Red44.
The lead defendant, Timothy Pughsley, faces 38 charges in the case.
He also owns 30 percent of Downtown Trussville LLC, the company developing the entertainment district.
Prosecutors also outlined 30 items of property they could seize as punishment, in addition to various bank accounts tied to the defendants.
Of these, nine are parcels in the Trussville Entertainment District, which currently houses shops and restaurants.
Nearly $20 million of the City of Trussville’s own funds were used for the project.
“It’s paid dividends. Not just that area, but our entire downtown area and beyond. We’ve had a lot of new businesses come here because they see what Trusville is doing to move forward,” Mayor Buddy Choat said.
The developer’s attorney, Jay Smith, told Choate the site should be fine.
“I believe we’re going to have open business and we’re going to move forward with the plans we have for the region,” Choat said.
Retired federal judge John Carroll said several steps must be taken before any property is confiscated in criminal forfeiture.
First, Pughsley must be convicted, and prosecutors must prove that ill-gotten gains were used to buy the property or that the parcel was used to commit the crime.
The law does protect the primary property owner in such cases, Carroll said.
“Innocent buyers can come to court and say, ‘Wait a minute, we don’t know anything about this. Forfeiting property is wrong, we don’t deserve to lose our property,'” Carroll said.
Smith said Pugsley was a passive investor in the project and the developer knew nothing of his alleged crimes.
“We do not believe that the indictment or charges will have any impact on the development of the downtown Trussville area or the businesses that operate there,” Jay Smith said.
Pughsley and nine other defendants will be arraigned in federal court on Thursday morning.
