Fifth Defendant in Sports Betting Fraud Ring Sentenced
Memphis, TN / Thursday, January 22, 2026 – The last of five Mid-South men, LaVonte Holmes, who executed a sports betting fraud scheme between 2022 and 2024, was sentenced to prison on January 20, 2026.
According to information presented in Court, the defendants purchased both stolen personal identifying information—including dates of birth and social security numbers—and bank account information off the internet to create and fund fraudulent sports betting accounts on multiple sports betting smartphone applications in order to earn account opening incentives multiple times over.
In addition to conducting the scheme in the Western District of Tennessee, the ring would travel to other states to perpetrate the fraud as well. All five defendants pled guilty to aggravated identity theft in violation of 18 U.S.C. § 1028A and unauthorized use of an access device in violation of 18 U.S.C. § 1029(a)(2) and were sentenced by Chief United States District Court Judge Sheryl H. Lipman.
- Lucas Gilliam, 25, was sentenced to 36 months.
- LaVonte Holmes, 24, was sentenced to 30 months.
- Lawrence Williams, 22, was sentenced to 15 months.
- Nathan Penaflor, 23, was sentenced to 6 months.
- Joshua Penaflor, 22, was sentenced to 6 months.
There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "With new and ever-changing technology, applications, and platforms, criminals are using more creative and disturbing ways to commit fraud against vulnerable victims, including identity theft. For these thieves, their bets did not pay off, and were instead parlayed into prison sentences.”
This case was investigated by the Federal Bureau of Investigation Nashville Field Office-Memphis Resident Agency and the United States Secret Service, Memphis Field Office.
United States Attorney D. Michael Dunavant thanked Assistant United States Attorney William Bateman, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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Source: U.S. Attorney's Office, Western District of Tennessee
