A man from Michigan has been hit with eight felony charges for allegedly defrauding Caesars Sportsbook to the tune of millions of dollars.
The Michigan Gaming Control Board (MGCB) said in a release that Jeffrey Saco, 38, is accused of making more than $2 million in fictitious deposits into his Caesars Sportsbook account by “exploiting a system vulnerability” in April 2023.
Saco allegedly placed 10,000 bets within 16 days at an average rate of around 26 bets an hour, totaling more than $88 million in stake. He then allegedly transferred more than $521,000 into his personal bank account and stopped using the Caesars Sportsbook app.
Caesars Entertainment notified the MGCB about the issue after the operator suspected an account holder was allegedly engaging in fraudulent activities with his mobile betting account. The MGCB and the Michigan Department of the Attorney General’s Criminal Investigation Division conducted an extensive investigation.
Saco was arrested on Sept. 4 and was arraigned on Sept. 5 in the 86th District Court. He faces the following charges:
- One count of larceny by conversion. Larceny by conversion is when an individual embezzles or unlawfully converts money, goods or other property that has been entrusted to them. The penalties for this offense depend on the value of the stolen property. For amounts exceeding $20,000 or in cases involving prior larceny convictions, felony charges can lead to a prison sentence of up to 10 years, along with a fine of up to $15,000 or three times the value of the stolen property, whichever is greater.
- Three counts of gambling activity – felony violation. Each of these felony counts is punishable by imprisonment for not more than 10 years or a fine of not more than $100,000, or both.
- Four counts of using a computer to commit a crime. Each felony count for using a computer to commit a crime is punishable by a maximum term of imprisonment of 10 to 20 years and/or a $10,000 fine.
MGCB Executive Director Henry Williams said the board takes the enforcement of gambling laws and regulations very seriously.
“To that end, I appreciate the collaborative partnership the agency has with the Michigan Attorney General’s Office and industry personnel at Caesars Entertainment — who initially notified us about this situation,” Williams continued. “It is important to remember that this individual who is facing charges has the right to due process and is presumed innocent until proven guilty. With that being said, we will now let the judicial system determine the truth in this matter and the veracity of the charges.”
Saco has been released on $500,000 bond and his preliminary examination is scheduled for Oct. 4.
SBC Americas reached out to Caesars for comment but had not heard back at the time of writing.
