LOS ANGELES — The former interpreter for Los Angeles Dodgers star Shohei Ohtani pleaded not guilty Tuesday to bank and tax fraud, a formality ahead of a plea deal he’s negotiated with federal prosecutors in a wide-ranging sports betting case.
Prosecutors say Ippei Mizuhara stole nearly $17 million from Ohtani to pay off sports gambling debts during a yearslong scheme, at times impersonating Ohtani to bankers, and exploited his personal and professional relationship with the two-way player.
Mizuhara signed a plea agreement that detailed the allegations on May 5, and prosecutors announced it several days later.
During his arraignment Tuesday in federal court in Los Angeles, U.S. Magistrate Judge Jean P. Rosenbluth asked Mizuhara to enter a plea to one count of bank fraud and one count of subscribing to a false tax return.
The expected not-guilty plea was a procedural step as the case moves forward, even though he has already agreed to the plea deal.
Defense attorney Michael G. Freedman said Mizuhara planned to plead guilty in the future.
In the hallway before the hearing, Freedman said they would not comment Tuesday.
Members of the media were not allowed inside the main courtroom and instead were seated in an audio-only overflow room. The Associated Press and other outlets filed a complaint with the court clerk and chief district judge.
Mizuhara only spoke to answer the judge’s questions, with responses like “yes, ma’am” when asked whether he understood the proceedings.
There was no evidence Ohtani was involved in or aware of Mizuhara’s gambling, and the player is cooperating with investigators, authorities said.
What to know about Shohei Ohtani’s accusations against his former interpreter
Lawyers representing Los Angeles Dodgers star Shohei Ohtani have accused his now-former interpreter and longtime friend Ippei Mizuhara of “massive theft” in a $4.5 million bombshell.
Mizuhara, who followed the two-time AL MVP from the Angels after he signed a 10-year, $700 million deal this offseason, reportedly accrued massive gambling debts he needed to pay off.
Mizuhara first told ESPN Ohtani offered to pay off the debt and later changed his story, insisting the Japanese star was unaware of the eight-nine wire transfers made from his accounts to an alleged illegal bookmaker.
Ohtani’s camp has “disavowed” Mizuhara’s initial story, per ESPN.
He was fired shortly after the Dodgers’ season opener against the Padres in Seoul, South Korea, and Ohtani has yet to publicly address the situation, though his camp is pushing for a law enforcement investigation amid an IRS probe.
“I never bet on baseball,” Mizuhara told ESPN. “That’s 100%. I knew that rule. … We have a meeting about that in spring training.”
All sides claim Ohtani has no involvement in any gambling.
Mizuhara’s plea agreement says he will be required to pay Ohtani restitution that could total nearly $17 million, as well as more than $1 million to the IRS.
Those amounts could change prior to sentencing.
The bank fraud charge carries a maximum of 30 years in federal prison, and the false tax return charge carries a sentence of up to three years in federal prison.
Mizuhara’s winning bets totaled over $142 million, which he deposited in his own bank account and not Ohtani’s. But his losing bets were around $183 million, a net loss of nearly $41 million.
He did not wager on baseball.
He is free on an unsecured $25,000 bond, colloquially known as a signature bond, meaning he did not have to put up any cash or collateral to be freed. If he violates the bond conditions — which include a requirement to undergo gambling addiction treatment — he will be on the hook for $25,000.
The judge set a status conference for June 14.
The Los Angeles Times and ESPN broke the news of the prosecution in late March, prompting the Dodgers to fire the interpreter and the MLB to open its own investigation.
MLB rules prohibit players and team employees from wagering on baseball, even legally.
MLB also bans betting on other sports with illegal or offshore bookmakers.
Ohtani has sought to focus on the field as the case winds through the courts.
Hours after his ex-interpreter first appeared in court in April, he hit his 175th home run in MLB — tying Hideki Matsui for the most by a Japan-born player — during the Dodgers’ 8-7 loss to the San Diego Padres in 11 innings.
