The two brothers at the heart of the defunct Macho Sports online sports betting operation received federal prison sentences on Friday.
Erik and Jan Harald Portocarrerro were arrested along with 16 other individuals in June 2013 on charges of racketeering conspiracy and running an illegal gambling business. Jan was detained in California while Erik was arrested in Norway and subsequently extradited to the US.
Macho Sports was a classic online credit betting operation, processing wagers over the phone and online via a call center and website based in Peru while settling up with bettors in cash in person. The brothers chose to base their ops in Peru after being investigated for gambling activity in the Los Angeles area in the mid 1990s.
Macho Sports reportedly catered to a high-rolling clientele up and down the California coast. Checks made out to fake names were cashed at check-cashing businesses by local runners, then forwarded to the brothers in Norway and Peru in amounts that stayed below federal reporting requirements. Sub-bookies were instructed to route all phone calls through toll-free numbers and to use scrambling devices, tactics that apparently gave federal authorities fits.