$2.8 Million in illegal bingo profits returned to Okaloosa charities

In Brief:

🎲 $2.8M in illegal bingo profits returned
🤝 Ten local charities receive restitution
👮 Years-long investigation ends in community win

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Ten local charities are receiving more than $2.8 million in restitution after federal prosecutors secured the forfeiture of profits from an illegal bingo operation that siphoned millions from nonprofits over nearly a decade.

U.S. Attorney John P. Heekin of the U.S. Attorney’s Office for the Northern District of Florida announced the distribution on Tuesday, stating that the remission process ensures that ill-gotten gains are returned to the community.

“Victims of crime too often suffer losses at the hands of criminals that cannot ever be restored,” Heekin said in a news release. “But my office is committed to taking action to ensure those offenders cannot reap or retain the benefits of their wrongdoing, and we will remit the proceeds of those forfeitures whenever possible.”

According to the U.S. Attorney’s Office, Larry and Dixie Masino, who operated Racetrack Bingo in Fort Walton Beach, were convicted of illegal gambling and money laundering charges.

From 2006 to 2015, investigators said, the Masino family laundered and retained more than $5.8 million in profits that should have been distributed to local nonprofits or returned to players as prize money.

Although Racetrack Bingo appeared to run games for charitable causes, prosecutors demonstrated that the operation diverted a significant portion of the money into personal accounts.

The $2.8 million in forfeited assets has now been distributed to the nonprofits originally defrauded:

The ARC of the Emerald Coast (formerly Horizons of Okaloosa County, Inc.)
Boys and Girls Club of the Emerald Coast
Emerald Coast Science Center
Habitat for Humanity in Okaloosa County
Horizons Foundation of Okaloosa County
Mental Health Association of Okaloosa and Walton Counties
Northwest Florida Ballet
Northwest Florida Fair Association
Okaloosa County Festival Association
Order Sons of Italy in America, Joseph B. Franzalia Lodge 2422

In a news release, Okaloosa County Sheriff Eric Aden called the outcome “long-awaited justice.”

“This not only holds the perpetrators accountable but also restores vital resources to organizations that uplift our community,” Aden said in a statement.

IRS Criminal Investigation Special Agent in Charge Ron Loecker added that the Masinos had “betrayed charities providing important services,” and praised the years-long effort by state and federal investigators.

The investigation involved the Florida Department of Law Enforcement, IRS Criminal Investigation, the FBI, and the Okaloosa County Sheriff’s Office. Assistant U.S. Attorney Alicia H. Forbes prosecuted the case.