UTAH SEVEN CHARGED

1 June 2007

Gambling ring accuseds face 34 felony charges

The Utah gambling ring raids a fortnight back (see previous InfoPowa reports) had a sequel in a US District Court this week when seven Las Vegas residents were charged with involvement in the illegal sportsbetting enterprise. All seven pleaded not guilty at the arraignment and detention hearing.

Hill Financial Services and Gateway Technologies also entered a not guilty plea to money laundering, racketeering conspiracy and bank fraud charges, according to U.S. Attorney Brett L. Tolman in a statement. Representatives from BetUS.com and CurrenC Worldwide, two other companies charged in the indictment unsealed earlier this month in Utah, were not present at the arraignment and have not yet been served, U.S. Attorney spokesperson Melodie Rydalch said.

Richard Carson-Selman, Henry Bankey, Tina Hill, Lombardo brothers Baron, Count and Francisco, and Francisco's wife Kimberlie were charged with 34 felony counts of racketeering, bank fraud, wire fraud and money laundering, which carry sentences up to 20-30 years in prison.

The prosecution alleged that members of the group were involved in a seven-year-long international money laundering service, which would distribute moneys from sports Internet gambling Web sites to a series of international bank accounts and computer servers. The funds would then be forwarded to Utah-based companies.

Court documents state the group processed more than $150 million in proceeds from the gambling Web sites, deceiving credit card companies by mislabeling U.S.-based online gambling transactions. The indictment also alleges that at least one U.S. bank official had been bribed to ensure the transactions were miscoded. Almost 40 boxes of evidence and multiple computer hard drives were confiscated by authorities as evidence. evidence.

Companies used in the operation were named as CurrenC Limited, Gateway Technologies, Hill Financial services and Betus by prosecutors, who claim that the group created the companies as a conduit for credit card and wire transfer operations. The indictment alleged that using the group's facilities, US players could illegally place bets on sporting events and gambling games using Web sites such as Betonsports PLC and Betus.

US enforcement authorities revealed that the ring was uncovered when the IRS noticed "several strange" transactions from the companies and conducted an investigation.

Members of the group were not detained, but Judge Paul Warner required them to surrender passports and imposed a restriction on movement outside the states of Nevada and Utah without prior court approval. One exception - for Richard Carson-Selman - was granted as that individual was required to travel in his capacity as an independent contractor for Edelweiss, a credit card manufacturing company in Europe. But he is required to obtain court approval before travel.

Federal prosecutors served notice under the Rackeeter Influenced and Corrupt Organisations (RICO) statute that in the event any defendant is convicted, the government will seek seizure of multiple assets. In addition to the monetary content in multiple off-shore accounts.

"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," said US Attorney Tolman in a statement.

A trial date has not been set. The group is next scheduled to appear at a trial status conference on August 6 in front of Federal Judge Paul Cassell.

Online Casino News courtesy of InfoPowa