The Michigan Gaming Control Board (MGCB) and the Michigan Department of Attorney General conducted an extensive investigation, uncovering Saco’s activities, which included over $2 million in fictitious deposits and $88 million in wagers over a mere 16 days in April 2023.
Exploiting a Vulnerability to Defraud the System
Caesars Michigan initially notified the MGCB of suspicious activity involving Saco’s mobile betting account. The investigation revealed that Saco allegedly utilized a system vulnerability to deposit over $2 million into his account.
Over the next 16 days, he placed nearly 10,000 bets, totaling $88 million, averaging approximately $8,800 per wager. He then transferred more than $521,000 into his personal bank account before ceasing activity on the platform.
The MGCB Executive Director Henry Williams highlighted the seriousness of this case, saying,
“The Michigan Gaming Control Board takes the enforcement of gambling laws and regulations very seriously in this state. 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 also emphasized that Saco is
“presumed innocent until proven guilty”
and that it is now up to the judicial system to determine the veracity of the charges.
The Charges and Legal Proceedings
Saco faces eight felony charges, including one count of larceny by conversion, three counts of gambling activity-felony violation, and four counts of using a computer to commit a crime. The charges carry potentially severe penalties if Saco is convicted.
Larceny by conversion, as defined under the Michigan Penal Code Section 362 (MCL 750.362), involves embezzling or unlawfully converting money or property that has been entrusted to the accused. In this case, Saco allegedly converted the funds obtained through fictitious deposits into his sportsbook account. If the value exceeds $20,000, the offense can lead to a prison sentence of up to 10 years and a fine of up to $15,000 or three times the value of the stolen property — whichever is greater.
The three felony counts related to gambling activity fall under the Michigan Gaming Control and Revenue Act (432.218). Each count can result in imprisonment for up to 10 years or a fine of up to $100,000. In addition, the individual would be barred from receiving or maintaining a license to conduct a gambling operation.
The four counts of using a computer to commit a crime, under MCL 752.796, are punishable by a maximum term of imprisonment of 10 to 20 years or a $10,000 fine. This aspect of the charges reflects the nature of Saco’s alleged actions, where he used digital means to exploit vulnerabilities in the sportsbook platform.
Saco was arrested on September 4, 2024, by Lathrup Village Police and conveyed to the Grand Traverse Sheriff’s Department in Traverse City by agents from the Michigan Department of Attorney General’s Criminal Investigation Division. He was arraigned the next day in the 86th District Court in Traverse City and subsequently released on a $500,000 personal bond.
Michigan Attorney General Dana Nessel also commented on the case, stating,
“My office not only works alongside the Michigan Gaming Control Board to enforce our state laws prohibiting illegal gaming operations, we also partner to prosecute criminals taking advantage of legitimate gaming venues. I appreciate our partnership with the Michigan Gaming Control Board and share their dedication to enforcing our state’s gaming laws.”
A probable cause conference was held on September 13, 2024, and Saco’s preliminary examination hearing is scheduled for October 4, 2024. As the judicial process moves forward, this case highlights the ongoing efforts of Michigan authorities to enforce gaming regulations and address fraud in the growing Michigan sports betting industry.
