Imprisoned PA Sports Bettor Gambled Away $1.5 Million

On Aug. 27, 2024, a former accountant in Pennsylvania was sentenced to prison stemming from a sports gambling addiction.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lawrence Malachefski, 39, of Wilkes-Barre, was sentenced to 30 months’ imprisonment and a three-year term of supervised release for wire fraud.

According to the government, from about March 2023 to May 2023, while serving as the financial Controller of a Wilkes-Barre based Heating, Ventilation and Air Conditioning (HVAC) business, Malachefski embezzled over $1.5 million from his employer, converting the funds to his own personal use and then spending the money primarily on online sports betting websites. 

The state of Pennsylvania sanctions and promotes online sports gambling, an activity which causes problems for 30-40% of players, according to the latest betting addiction statistics.

At his sentencing, Malachefski was also ordered to pay $1,586,557.45 in restitution.

It’s unclear how long it took Malachefski to gamble away the $1.5 million he embezzled. It could have been lost to online gambling platforms in just a few months.

According to court filings, he used FanDuel, Barstool Sports, DraftKings and Unibet. He apparently was never cut off from gambling despite the heavy losses.

Malachefski pleaded guilty to the wire fraud charge in April 2024.

Malachefski, who had been on a path for promotion to company chief financial officer, reported himself to his employer in June 2023 and cooperated with the police investigation.

His embezzlement started during the March Madness basketball tournament, one of the most heavily-bet sports events. March is Problem Gambling Awareness Month.

Image by Lisa Kennedy from Pixabay.