Two felony gambling charges and a money laundering charge have been filed against Joseph Mahfood, 58, of St. Louis County, Samuel Douglas “Doug” Hazer, 63, of Alabama, and Carol Jean “CJ” Hazer, 60, of Farmington. They are accused of engaging in illegal sports betting for over 6 years and have been arrested within the past two months.
Mahfood is charged with an unlawful financial transaction and four false tax returns. According to prosecutors, he laundered approximately $500,000 since 2008 by issuing paychecks to local businesses for services that were never rendered. $420,000 have been seized from his numerous bank accounts. A relative of Mahfood’s has allegedly been also involved in the scheme by converting gambling proceeds into stock shares. Mahfood has pleaded not guilty and his attorney has not been found for comment.
The Hazers are facing a monetary transaction charge, two money laundering accusations, a perjury charge as well as four charges of filing false tax returns. Doug Hazer is believed to have obtained at least $380,000 from illegal gambling while his former wife has likely received around $124,000. Pursuant to the indictment, prosecutors are demanding the forfeiture of Doug Hazer’s house which has been partially bought with laundered money.