Transaction Processors Charged (two threads merged on subject)

[oldirtyku]

Seven face felonies for online credit processing

San Francisco (IDGNS) - A grand jury in Salt Lake City, Utah, has charged seven people and four companies with multiple felonies related to processing credit cards for gambling Web sites.

The defendants are accused of helping gambling sites process $150 million in payments from U.S. bettors, according to the U.S. Department of Justice.
The 34-count indictment, issued Wednesday and released Thursday, accuses the defendants of operating a business that helped Internet gambling sites disguise credit card charges and deceiving credit card issuers who would have not authorized the charges. Most online gambling is illegal in the United States.
The indictment alleges that the defendants' businesses assisted Internet gambling sites by arranging fund transfers between U.S. bettors and the sites by using Western Union wire transfers.

Charged in the indictment are Baron Lombardo, 46; Richard Carson-Selman, 51; Henry G. Bankey, 49; Francisco Lombardo, 52; Count C. Lombardo, 43; and Kimberlie Lombardo, 43, all of Las Vegas, Nevada; and Tina I. Hill, 32, of Sandy, Utah, and Las Vegas.

Companies facing charges are CurrenC, also known as CurrenC WorldWide, based in the British Virgin Islands; Gateway Technologies, based in Draper, Utah; Hill Financial Services, based in Draper, Utah, and Las Vegas; and BetUS, based in Kanawahke, Canada.

People who facilitate online gambling in the U.S. violate "numerous" federal and state laws, Brett Tolman, U.S. attorney for the District of Utah, said in a press release. “Payment processors who attempt to hide the true nature of the transactions they are conducting and the Internet gambling Web sites that use these payment processors will be prosecuted and brought to justice," he said in a statement.

The defendants are charged with Racketeer Influenced and Corrupt Organizations Act conspiracy, bank fraud, violations of the wire-wager act, and money laundering. The indictment seeks the forfeiture of $150 million, as well as real estate and vehicles.

The defendants created a Web site they called the Gateway, an automated collector and processor of illegal Internet gambling funding transactions, the DOJ said. The defendants caused the Gateway to misclassify the transactions to Visa and MasterCard, representing that the transactions were for something other than gambling.
The defendants caused the illegal Internet gambling Web site’s customers to wire funds through Western Union to people in the Philippines, who worked with the defendants, the DOJ said.

None of the defendants were in custody as of Friday afternoon. One was arrested in Las Vegas and made an initial court appearance Thursday, and another was expected to surrender to authorities in Las Vegas Friday.
The maximum penalties for the counts in the indictment include 20 years for racketeering conspiracy; 30 years for bank fraud; 2 years for transmission of wagers/wagering information; and 20 years for money laundering.

 

[maxdemo]

Damn!!

This is not good news at all....and this time its out of Utah and not STL or NY

 

[maxdemo]

BetUS.com BetonSports Payment Processor, Others Indicted Friday
The U.S. attorney for Utah on Friday announced charges against seven people and four companies, including BetUS.com, accused in the processing of payments for illegal Internet gambling.

The defendants live in Las Vegas, but two of the companies that are accused of helping carry out fraud were based in Draper, a Salt Lake City suburb, according to the indictment.

"We now have a body of information technology and strategy that can cross many jurisdictions," U.S. Attorney Brett Tolman said at a news conference.

Virtually all Internet gambling is illegal in the United States, with some exceptions carved out for horse racing, he said.

Congress has largely exempted people who gamble online from criminal charges, but companies are prohibited from processing online bets.

The indictment claims banks issuing Visa and MasterCard credit cards were fooled into processing Internet gambling charges. Defendants also channeled Western Union wire transfers through the Philippines.

The 34-count indictment includes charges of racketeering conspiracy, bank fraud, transmission of wagers and money laundering.

The seven defendants are accused of creating three companies to conduct fraudulent credit card and wire transfers for their clients - online gaming sites based outside the U.S., the indictment said.

The first company, CurrenC and CurrenC Worldwide, based in other countries including Korea, Jamaica and the United Kingdom, processed most of the credit card and wire transfers. But two companies, Hill Financial Services and Gateway Technologies, based in Utah, and are accused of providing accounting and technical services for the illegal business and were used to track transactions, Tolman said.

An investigation is ongoing to determine if employees at the Utah businesses were aware they were involved in criminal activity and therefore could also face charges, he said.

"There are layers of facade that have to be pulled back and uncovered," Tolman said.

In addition to BetUS.com, BetOnSports and four other unnamed gambling Web sites are mentioned in the indictment as doing business with the defendants and their companies.

In March, the founder of BetOnSports, Stephen Kaplan, was arrested in the Dominican Republic. He and chief executive David Carruthers are facing federal charges of felony racketeering and fraud in St. Louis.

There was no immediate response to an e-mail sent to Costa Rica-based BetUS.com seeking comment Friday.

The indictment seeks to recover $150 million from the defendants as well as real estate, vehicles and other assets under RICO, the federal Racketeer Influenced and Corrupt Organizations law.

None of the defendants is in custody, but all are scheduled to appear in U.S. District Court in Salt Lake City on May 30.

Tolman said the government is not seeking their detention pending the hearing because they are not considered flight risks or threats to the community.

 

[Bet-It-All]

Whats next? They are going to charge Western Union?


You can't doubt the DOJ knows Western Union and money gram are currently the most common funding methods. And I have no doubt Western Union knows they are being used by every sportsbook in the world to send and recieve payments.

 

[Brooklynbomber]

Whats next? They are going to charge Western Union?


You can't doubt the DOJ knows Western Union and money gram are currently the most common funding methods. And I have no doubt Western Union knows they are being used by every sportsbook in the world to send and recieve payments.

WU stock down after hours.

WU is safe though. Little known fact: The CIA has a team stationed at Western Union and has had since 9/11 to help the U.S. out on the "war on terror" - every transaction is put through a search algorithm - of course they know about the gambling but will look the other way I believe as long as WU continues to allow them the priveledge.. I also think WU has some big favors coming to them if need be.

 

[maxdemo]

WU stock down after hours.

WU is safe though. Little known fact: The CIA has a team stationed at Western Union and has had since 9/11 to help the U.S. out on the "war on terror" - every transaction is put through a search algorithm - of course they know about the gambling but will look the other way I believe as long as WU continues to allow them the priveledge.. I also think WU has some big favors coming to them if need be.

Then why do they ban people that they know are doing tranactions to gambling companies...I am banned because of a 35k payout (7x5k over 7 days) last december. I dont believe that for a second...JMO

 

[Brooklynbomber]

Then why do they ban people that they know are doing tranactions to gambling companies...I am banned because of a 35k payout (7x5k over 7 days) last december. I dont believe that for a second...JMO

not sure max....I have a friend who was banned and then repeatedy called by WU (he is Indian though). Western Union banning 1 out of every 1000 or so gamblers is a pretty poor detection rate. I think it is just lip service. remember WU profits from all these transfers. pretty sure you will never see federal charges brought up against WU for the reasons I stated in my previous post.

 

[Mason]

"I am banned because of a 35k payout (7x5k over 7 days) last december."

Not exactly flying under the radar my friend. A bank wire would have been a better idea IMO.

 

[Jabow]

http://www.rgtonline.com:80/Article.cfm?ArticleId=72361&CategoryName=Vegas

 

[xpanda]

 

[wilheim]

Thread posted earlier this week on the same subject.



http://www.therxforum.com/showthread.php?t=484112&highlight=CurrenC




wil.

 

[Jabow]

xpanda, nice avatar, and obviously I didnt see the thread, thanks for the info Wil, you're a true professional on all situations Wil.

 

[AdamSelene]

What's strange about the indictment, if you read it:
http://www.usdoj.gov/usao/ut/press/indictments/US v Lombardo et al indictment.pdf

Is that other than BetOnSports and BetUS, the other websites are named: Website A, Website B, Website C and Website D.

Why would they do that, exempt as to attempt not to tipp off these other companies (A-D) of an ongoing investigation or unsealed indictment?

 

[Sbjr]

Sigh, soon well have to fly to the carribean to hand them the cash to fund our accounts.

 

[maxdemo]

"I am banned because of a 35k payout (7x5k over 7 days) last december."

Not exactly flying under the radar my friend. A bank wire would have been a better idea IMO.

Last year i had alot more than that in payouts / Transfers. When I soke w/ compliance dept. they told me a figure that even I thought was unbelievable...


Thats not an option that I do. I have my own comany and dont ever want to tie my Gambling w/ my job....not to smart in case I ever get in trouble. Banking wires are safe but if the feds come looking at least I know they use that against my company. I now use another option to send a receive that I wont discuss here.....but WU is being pro-active against tranfers to be in compliance w/ the feds. The writing is on the wall and the Feds are going after the companies and people that help move the $$ which in turn w/ cut off the US customers....JMO

 

[sean1]

In the end it is all going to come down to USPS money orders.

The USPS happily offers international money orders up to $10,000 per day.

It will be very tough for the US to prosecute the Post Office.

Sean

 

[Doug]

Bowman's used to not accept Postal MO's.