Citizen Sentenced In Costa Rica-Linked $4M Tax Evasion Case

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Published on Tuesday, September 8, 2026
By the A.M. Costa Rica staff and wire services

A U.S. citizen with a Costa Rica-based business was sentenced to 27 months in prison for tax evasion, operating an illegal gambling business and money laundering, the U.S. Department of Justice announced.

According to court documents and statements made in court, Feinman, of Calabasas, California, operated a business based in Costa Rica that, among other activities, ran a website used by unlicensed and illegal gambling businesses to facilitate their operations.

“The website enabled customers of the gambling businesses to place bets through websites the defendant maintained, which is illegal under state and federal law,” officials said.

Feinman also laundered cash generated by his business by exchanging it for checks made payable to himself or one of his businesses.

For example, between May 18, 2018, and Jan. 2, 2024, Feinman gave one of his customers more than $1.5 million in cash. In exchange, he received 18 checks payable to himself or his businesses for an equivalent amount. Overall, Feinman exchanged between $1.5 million and $3.5 million in cash for checks.

Between 2018 and 2022, Feinman also evaded taxes on income he earned through his illegal gambling business. Despite earning approximately $1.8 million in income in 2020, Feinman reported no taxable income to the Internal Revenue Service on his 2020 tax return and paid no taxes for that year.

In total, Feinman evaded taxes on approximately $4.2 million in income.

Feinman pleaded guilty to one count each of tax evasion, operating an illegal gambling business and money laundering.

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Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and First Assistant U.S. Attorney Bilal A. Essayli for the Central District of California announced the case.

The case was investigated by the IRS Criminal Investigation division and Homeland Security Investigations.

Trial attorneys John C. Gerardi and Charles A. O’Reilly of the Criminal Division’s Tax Section prosecuted the case.

According to the Justice Department, the department announced April 7 the creation of the National Fraud Enforcement Division, also known as the Fraud Division. The division is focused on investigating and prosecuting individuals who commit fraud against the American people.

The department said its efforts to combat fraud support the Task Force to Eliminate Fraud, a whole-of-government effort aimed at eliminating fraud, waste and abuse within federal benefit programs.

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What have you heard about expats running businesses in Costa Rica facing accusations of tax evasion? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com