Couple convicted of stealing $8M in bingo proceeds from charities

A local couple is facing decades in prison after allegedly pocketing $8 million in bingo proceeds meant for charities, according to a U.S. Attorney's Office news release.

Larry Masino, 67, of Gulf Breeze, and Dixie Masino, 65, of Pensacola, were convicted late Wednesday in the U.S. District Court in Pensacola of wire fraud conspiracy, operating an illegal gambling business and money laundering conspiracy.

In addition, Larry Masino was convicted of 18 counts of money laundering, and Dixie Masino was convicted of 20 counts of money laundering.

According to the release, the couple was illegally keeping the proceeds of bingo games they ran on behalf of various Okaloosa County charities.

Though Florida prohibits many forms of gambling, state statutes allow certain charitable organizations to operate bingo games as a form of fundraising. A stipulation of the statute is that all proceeds from the games — with the exception of operating expenses — must go to the organization. No person involved in conducting the games is allowed to receive compensation.

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The Masinos owned and operated Racetrack Bingo Inc. in Fort Walton Beach and ran bingo games on behalf of around 10 area nonprofits.

The release said the couple was paying themselves and their employees to conduct bingo games and were charging the charities fees based on inflated expenses. The Masinos also conspired to launder more than $5.8 million of the bingo proceeds through profit distribution checks that the Masinos and their three children received as shareholders of Racetrack Bingo.

For the wire fraud conspiracy, the Masinos face a maximum of 20 years in prison. For the money laundering conspiracy and money laundering charges, the Masinos face a maximum of 10 years in prison. For operating an illegal gambling business, they face a maximum of 5 years in prison.

The sentencing hearing is scheduled for 1 p.m. May 25 at the Arnow Federal Building in Pensacola.

This case resulted from a joint investigation by the Florida Department of Law Enforcement, the Internal Revenue Service — Criminal Investigation, the Federal Bureau of Investigation and the Okaloosa County Sheriff’s Office.