7 indicted on Internet gambling charges, 4 companies named

[Mousey]

Anyone still wondering why casinos are having problems processing payouts?? I find this piece rather disturbing...

LINKY

7 indicted on Internet gambling charges, 4 companies named Fri May 11, 5:36 PM ET


Seven people and four companies were indicted on charges of conspiring to violate a US ban on Internet gambling by disguising the credit card charges, officials said Friday.

Those charged include a Canadian-based sport betting firm and a company based in the British Virgin Islands, according to the US Department of Justice.

The 34-count indictment handed down in Salt Lake City, Utah, said the defendants ran a scheme to circumvent a US law passed last year that prohibits US banks and credit card companies from processing Internet bets.

The indictment alleges that the defendants facilitated the payment of more than 150 million dollars to Internet gambling websites in violation of a US ban on online betting.

The companies named included the payment processing firms CurrenC, Ltd.of the British Virgin Islands and Utah-based Gateway Technologies and Hill Financial Services; along with the Canadian-registered wagering site BetUS.

"Virtually all Internet gambling is illegal" under US law, US Attorney Brett Tolman said in announcing the indictments.
"Individuals and businesses that facilitate illegal Internet gambling are violating numerous federal and state laws. Payment processors who attempt to hide the true nature of the transactions they are conducting and the Internet gambling websites that use these payment processors will be prosecuted and brought to justice."

The defendants are charged with racketeering conspiracy, bank fraud, violations of the wire-wager act and money laundering.

US authorities are also seeking forfeiture of 150 million dollars as well as real estate, vehicles and funds in numerous bank accounts.

Investigators said the scheme "purposefully misclassified credit card transactions to fool banks into processing Internet gambling charges" and thus allowed bettors in the US to spend money on the gambling websites.

According to the indictment, the funds were wired through Western Union to people in the Philippines who were associated with the defendants and then transferred back to the gaming sites through a service the operators called "the Gateway."

Some of the charges carry criminal penalties of up to 30 years in prison.

The individuals charged in the indictment are seven people from Las Vegas identified as Baron Lombardo, 46; Richard Carson-Selman, 51; Henry Bankey, 49; Francisco Lombardo, 52; Count Lombardo, 43; Tina Hill, 32; and Kimberlie Lombardo, 43.

[cynthial]

I think it is starting to raid turds.

[jetset]

Here's a somewhat more detailed report than the AP report above (see below).

Coincidentally, Optimal parent of Firepay issued a fuzzy sort of press release yesterday on their "discussions" with the U.S. Attorney's Office in the Southern District of New York.

The release says they are "...responding to a voluntary request for information issued by the U.S. Attorney's Office.

"In connection with such ongoing investigation, Optimal has received a copy of warrants of seizure issued by the U.S. Attorney's Office against funds of certain payment processors on deposit with two U.S. banks. These funds include monies on deposit to the credit of Company affiliates, namely, approximately $4.2 million that FirePay Limited has on deposit in a reserve account and approximately $15 million that Optimal Payments has on deposit in a money market account.

"Through counsel, the Company has been assured by the U.S. Attorney's Office that the issuance of the warrants does not impact in any way upon discussions between the Company and the U.S. Attorney's Office, nor upon any eventual outcome of those discussions."

Sounds to me like there could also be some "save your skin by disclosing information on some of your former merchants!"

Here's that information on the Utah charges:

Betus and other online gambling indictments

A federal grand jury in Salt Lake City returned a 34-count indictment Wednesday afternoon charging seven individuals and four companies with conspiring to violate laws prohibiting Internet gambling, U.S. Attorney Brett L. Tolman for the District of Utah, and Special Agent in Charge Wes Eddy of the IRS Criminal Investigation Division's Las Vegas Field Office said.

The indictment, unsealed on May 10, 2007, alleges the defendants operated a business that helped Internet gambling websites to disguise credit card charges for gambling as charges for something else, thereby deceiving credit card issuers who otherwise would not have authorized the transactions.

The indictment also alleges the defendants' businesses assisted Internet gambling websites by arranging fund transfers between bettors in the United States and various Internet gambling websites using Western Union wire transfers.

One Internet gambling website, BetUS, is also charged with conspiring with the individuals named in the indictment. According to BetUS's website, BetUS provides internet based sports and casino gambling.

During the course of their conspiracy, the indictment alleges that the defendants facilitated the payment of more than $150 million to illegal Internet gambling websites.

Charged in the indictment are Baron Lombardo, 46, of Las Vegas; Richard Carson-Selman, 51, of Las Vegas; Henry G. Bankey, 49, of Las Vegas; Francisco Lombardo a.k.a. Frank Lombardo, 52, of Las Vegas; Count C. Lombardo, 43, of Las Vegas; Tina I. Hill, 32, of Sandy, Utah and Las Vegas; Kimberlie Lombardo a.k.a. Kittie Lombardo, 43, of Las Vegas; CurrenC, Ltd., also known as CurrenC WorldWide, LTD., of Road Town, Tortola, British Virgin Islands; Gateway Technologies, LLC., of Draper, Utah; Hill Financial Services, Inc., of Draper, Utah, and Las Vegas; and BetUS of Kanawahke, Canada.

"Virtually all Internet gambling is illegal. Individuals and businesses that facilitate illegal Internet gambling are violating numerous federal and state laws," U.S. Attorney Brett L. Tolman said.

"Payment processors who attempt to hide the true nature of the transactions they are conducting and the Internet gambling websites that use these payment processors will be prosecuted and brought to justice."

"Internet gambling, along with other types of 'illegal e-commerce,' are areas of interest to IRS Criminal Investigation," IRS Special Agent in Charge Eddy said.

"Laundering money from illegal activity such as illegal internet gambling is a crime. Regardless of how the money changes hands-via cash, check, wire transfers or credit cards-and regardless of where the money is stored-in a United States financial institution or an off shore bank-we will trace the funds and seize them.

"IRS Criminal Investigation will vigorously investigate and prosecute the owners and operators of these illegal enterprises to the fullest extent possible."

The defendants are charged with RICO conspiracy, bank fraud, violations of the wire-wager act, and money laundering. In addition to the criminal charges, the indictment also contains a forfeiture provision seeking forfeiture of $150 million as well as real estate, vehicles, and funds in numerous bank accounts.

The indictment alleges the individual defendants and three related businesses, CurrenC, LTD, also known as CurrenC Worldwide LTD; Gateway Technologies, LLC; Hill Financial Services, as well as BetUS, conspired to promote illegal Internet gambling in the United States.

The indictment alleges the defendants operated a payment processing business that catered to illegal Internet gambling businesses. As a part of their payment processing services, the indictment alleges that the defendants purposefully misclassified credit card transactions to fool banks into processing Internet gambling charges; collected monies transferred from bettors in the United States via credit card transactions; and transferred the collected funds to various Internet gambling web site operators.

The indictment further alleges that the purpose of the defendants' business was to help gambling websites have their transactions approved by Visa and MasterCard issuing banks, which would not knowingly authorize Internet gambling transactions.

The indictment alleges that the defendants also conspired to offer their illegal Internet gambling websites another payment processing option through Western Union wire transfers. According to the indictment, the defendants caused the illegal Internet gambling website's customers to wire funds through Western Union to people in the Philippines who were associated with the defendants. The defendants then caused these associates in the Philippines to transfer funds to accounts controlled by the defendants.

In order to operate their illegal payment processing business, the indictment alleges the defendants created a website they called "the Gateway." The Gateway was an automated collector and processor of illegal Internet gambling funding transactions. The indictment alleges that the defendants caused the Gateway to misclassify the transactions to Visa and MasterCard, representing that the transactions were for something other than gambling. In this manner, the defendants assisted illegal Internet gambling websites in having their gambling transactions authorized by Visa and MasterCard issuing banks.

The indictment further alleges that the defendants used offshore accounts to receive the proceeds of their payment processing business. The defendants then caused this money to be transferred to their client websites. For their services, the defendants collected per-transaction fees from their clients.

The defendants allegedly transferred their proceeds to businesses in the United States that they owned and controlled, including Gateway Technologies and Hill Financial.

The defendants are also accused of using trusts, including Bablcom Domestic Non Grantor Insurance Trust, Landbaron Ultra Trust, Behnke Domestic Non Grantor Insurance Trust, Lime Light Domestic Non Grantor Insurance Trust and Red Dogg Ultra Trust, to conceal their profits from their illegal payment processing business. The defendants then used the funds transferred to trust bank accounts to make investments and to buy real property, cars, and other personal property.

None of the defendants are in custody at this time.

Richard Carson-Selman was arrested on May 10, 2007, in Las Vegas. He had an initial appearance in Las Vegas yesterday and was released on conditions under the supervision of pre-trial services.

Baron Lombardo will self-surrender in Las Vegas today and will have an initial appearance.

All of the defendants are scheduled to be arraigned in U.S. District Court in Salt Lake City on Wednesday, May 30, at 10a.m. before U.S. Magistrate Judge Paul Warner.

The potential maximum penalties for the counts in the indictment include 20 years for racketeering conspiracy; 30 years for bank fraud; two years for transmission of wagers/wagering information; and 20 years for money laundering.

Defendants charged in indictments are presumed innocent unless or until proven guilty in court.

The case is being investigated by the IRS Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney D. Loren Washburn of the District of Utah and trial attorney Marty Woelfle of the Criminal Division's Organized Crime and Racketeering Section.

[lojo]

reading

edit: leon, eddy and donovan. KMMFDA, and evey ass of any one in the world who wants to play. Go getcher goombas, eff U.

[dominique]

Originally Posted by jetset

Sounds to me like there could also be some "save your skin by disclosing information on some of your former merchants!"

That seems to be the general theme with neteller also.

[lojo]

Originally Posted by dominique

That seems to be the general theme with neteller also.

My point is eff the dolts. There's a break line somewhere, and it sure as hell is not the average player. Cahoots is cahoots in any industry (howard hughs).

I don't give a bleedin flip if some super Orwellian 'law' wants to touch my freedom, or play.

[Mousey]

Thanks for the additional details, Jetset.

All of this just totally creeps me out. The DoJ just seems to be so damned rabid about online gambling... Their passion for prosecuting (and extorting millions from) these companies and individuals seems totally out of whack with the severity of the 'crime'.

[oldtrvlagt]

Actually, I'm not a radical person and after 30 years in the travel business I HATE confrontations, however, my personal opinion is that the U.S. government has gone WAY overboard on online gaming. I can go and blow as much money as my bank card will allow me at a state run or indian casino but God forbid if I want to play $20 on Thunderstruck online. They are not protecting me, the citizen, by outlawing internet gambling, they are trying to give the IRS as much money as they can squeeze out. My personal opinion of course but it bites.

[lots0]

I don't know if any of you are keeping up with what is currently going on at the US Justice Department.

It now appears based on a current investigation that Bush and company have been filling all the jobs (including Interns) at the Justice Dept. with extremely radical conservative christian republicans for the last three or four years, most of the new Attorney hires are graduates of the Regent University School of Law, founded by televangelist Pat Robertson to provide "Christian leadership to change the world,". Regent Law school is a third rate law school, no respectable private law office would hire a graduate of Regent.

Of course filling jobs at the justice department based on the political and religious beliefs of the people you are hiring is against the law... But then Bush and his cronies are way above the Law... Or so they think.

The fact that these charges come out of Salt Lake City is no surprise, the US Attorney in Salt Lake is one of the Bush administrations favorite radical christian prosecutors (and he sure ain't a Mormon).

The online gambling ban is just the tip of the iceberg folks... these people want too and are trying very hard too... force their entire radical belief system down our throat no matter if we like it or not...

I think we are going to have to wait till Bush and his cronies have been all thrown out of power (and hopefully into prison) before our freedom to spend our own hard earned money the way we choose is restored.

http://www.washingtonpost.com/wp-dyn...040601799.html

http://www.washingtonpost.com/wp-dyn...032901964.html

http://rawstory.com/news/2007/olberm...teup_0508.html

http://www.indybay.org/newsitems/200...4/18404441.php

[mysticjoz]

My personal opinion on this... All of us who live in the good old USA (home of NOT Free to do with our own funds as we please country) all know that this whole issue is that the "United States of America" will go to any and all lengths to be sure TAXES are paid on any of these winnings. and it all boils down to that and only that.. the USA government is not getting thier "share" and therefore will go to any length to assure that they get a profit also.
I would be willing to bet that if ALL online casino's were required to file a Tax Form with the Federal IRS (just like all casinos Within the USA at the time of any payout over $599.00 just like Foxwoods Casino, Mohegan sun, Vegas, Atlantic city do) to assure that the USA gets its "cut" of this industry which they disguise as "TAXABLE WINNINGS" how many congress men would vote for it then? Not a suggestion just an opinion,...

I keep seeing: "Virtually all Internet gambling is illegal. Individuals and businesses that facilitate illegal Internet gambling are violating numerous federal and state laws," U.S. Attorney Brett L. Tolman said.

Virtually ! Come on... be honest.. this all comes down to money. I also noted that online gambling is "Illegal" in Nevada! Guess we certainly don't want anyone who lives IN Las Vegas hitting a Jackpot online when they can just walk across the Street hit one there and have it immediatly documented!
(or they lose thier shirt, shoes, house, kids, and wife) But it's legal to gamble in Nevada.. just not online! )

lojo,, bush is a snake.. from day one. that would open so much pain for all of us in the us, yes.. he needs to be out-ed... fast! I don't know why he has not been impeached yet! I agree but I do feel bad for whoever gets in office that has to try to clean up all of the messes he made.

"All the money in the world won't buy the most precious thing you should hold in your heart... love, respect and your dignity"..(jmz)