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Arlington, TN - Gary L. Rapp Jr., owner of the Arlington-based sandwich shop “It’s A Wrapp,” is facing multiple criminal charges. The indictment includes six counts of tax evasion, one count of conspiring to operate an illegal sports-betting organization, one count of conspiring to commit money laundering, and two counts of money laundering.

The indictment alleges that Rapp and a group of other defendants have been involved in an illegal bookmaking business for at least 17 years. The organization, known as “Red44,” is said to have conducted betting activities online through an offshore server located in Costa Rica.

Defendants named in the indictment are alleged to be senior agents in the Red44 organization or original founding members. The tax evasion charges relate to Rapp’s purported failure to report income from the illegal sports-betting operation.

Regarding the tax counts against the defendants, the indictment alleges that the organization was estimated to have accepted hundreds of millions of dollars in wagers from bettors from 2019 through 2021. In 2019, the Red44 Organization was alleged to have earned a gross profit of $14,930,787.00. The excise tax owed to the Internal Revenue Service (“IRS”), or two percent of total wagers placed by bettors, would be $6,882,460.46 for 2019 alone. In 2020, the organization had income of approximately $24 million. The excise tax owed to the IRS for this year would total approximately $6 million. Further, in 2021, the organization had income of approximately $36 million. The excise tax owed to the IRS for 2020 would total over $7 million.

An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.