Gambling Addict Sentenced to Prison for Debts + $380,000

Corvallis man sentenced to federal prison for incurring debt of more than $380,00 in family members' names
Alison Barnwell, The Oregonian The Oregonian

A Corvallis man was sentenced to two years in federal prison, three years of supervision, and a restitution fee of $384,036 after he pleaded guilty to secretly incurring debts in his family members' names and fraudulently filing for bankruptcy.

Viengkham Virasak, 44, received his sentence yesterday in Eugene's U.S. District Court. The oldest son of Laotian immigrants and a Laos native himself, Virasak was supposed to be safeguarding the family finances, said Scott Bradford, the assistant U.S. district attorney who prosecuted the case.

Instead, an addiction to casino gambling led him to open about 50 credit-card accounts in the names of his father, mother, brother and sister, according to the U.S. district attorney's office.

The spree came after Virasak filed for his own bankruptcy in 1997. A certified tool-maker, Virasak worked at Hewlett-Packard as a maintenance technician until he was laid off in 2009.

Virasak also wrote three bankruptcy petitions using the names of his family members between 2005 and 2007. When confronted, he persuaded his siblings to go along with the ploy, Bradford said.

"He preyed upon his family's trust and love," Bradford wrote in the sentencing memo, noting that Virasak's family continued to give him money for the care of his wife and two young children.

Virasak's brother made payments to satisfy bankruptcy terms until he lost his job, Bradford said, and his sister ultimately withdrew her petition and paid off all the debt incurred by Virasak in her name.

FBI agents contacted Virasak in March 2010, acting on a tip from the U.S. Bankruptcy Court. Meanwhile, he attended inpatient and outpatient treatment for his gambling addiction through the state's Department of Human Services, Bradford's memo said.

After Virasak completed the program in December, his father liquidated his retirement funds to give his son $24,000 -- "to help him get back on his feet," according to the memo. Virasak took the money to two casinos, Bradford said.

"For years, the defendant wore one face to himself, a gambling addict and a manipulative fraudster, and another face to his wife, children, parents and siblings," Bradford wrote. "While recognizing the seriousness of his addiction and depression, it is important that they not be used to either excuse or diminish his criminal conduct."

At the sentencing, Virasak's large family begged the judge not to send him to prison, said Craig Weinerman, his attorney.

The family wanted him to continue treatment and work on the family's farm in Philomath, Weinerman said.

Virasak currently awaits his 37-month prison assignment on bond, according to the U.S. Marshals Service. Weinerman said he's at home with family in Corvallis.