The youngest son of admitted gambler Teddy Mitchell pleaded guilty Tuesday to a misdemeanor tax offense.
Billy Nick Mitchell was one of the card dealers at illegal poker games hosted by his father in Oklahoma City, prosecutors allege. At the high-stakes tables, pots would grow as high as $25,000 per hand, the FBI reported.
Nick Mitchell, 23, admitted Tuesday to an Oklahoma City federal judge that he filed a false 2010 income tax return.
He was accused in the misdemeanor charge of failing to report $3,500 in tips he earned from dealing cards at the poker games.
When he signed his plea paperwork in May, he was working at an Oklahoma City restaurant. He wrote he wanted to “accept the consequences of my conduct and move on with my life as a law-abiding citizen.”
U.S. District Judge David Russell will decide his punishment later. He faces up to a year in federal prison. He has agreed to pay $820 in restitution to the Internal Revenue Service and to pay a $1,000 fine.
Two other men who were card dealers at Teddy Mitchell's poker games also pleaded guilty Tuesday to misdemeanor tax offenses. A longtime friend pleaded guilty to two felony gambling offenses.
A federal grand jury last year indicted Teddy Mitchell, two of his sons, longtime friend David Bruce Loveland and five other men.
The indictment was the result of an investigation into Teddy Mitchell's poker games and into his involvement with a Costa Rican Internet sports betting site. Teddy Mitchell has said he didn't know at the time that what he was doing was illegal.
Prosecutors agreed to drop all felony counts in the indictment against Nick Mitchell and the two other card dealers, Michael Lee McCullah, 35, and Justin Edward Musgrove, 39, in exchange for their pleas to the new misdemeanor tax charges.
McCullah admitted he filed a false 2007 income tax return, not reporting $7,000 in tips he made dealing at Teddy Mitchell's poker games. He agreed to pay $884 in restitution to the IRS and a $1,000 fine.
Musgrove admitted he failed to file a 2007 federal income tax return, even though he had income from dealing at Teddy Mitchell's poker games. He agreed to pay a $1,000 fine. Musgrove said last year that he dealt three times in 2007 and “did it to get money for drugs,” according to court records.