30 CHARGED IN NEW YORK WITH OPERATING AN ILLEGAL ONLINE GAMBLING OPERATION / ONLINE BOOKMAKING

16 November 2006

PC WORLD
Grant Gross, IDG News Service
16/11/2006 06:48:17

Twenty-seven people and three corporations face charges related to operating an illegal online gambling operation in indictments announced Wednesday by the Queens District Attorney’s Office and the New York City Police Department.

The defendants operated a “highly sophisticated” gambling operation that booked more than US$3.3 billion in wagers over 28 months, the law enforcement authorities said. The operation placed bets on a number of sporting events, including horse racing, football, baseball, hockey and professional tennis, according to a press release from Queens District Attorney Richard A. Brown.

The case is the first time Internet gambling charges have been brought against anyone in the U.S. since President George Bush signed the Unlawful Internet Gambling Enforcement Act into law last month. The new law prohibits financial institutions from approving charges related to Internet gambling.

“Internet gambling is a multibillion dollar worldwide industry that for too long has operated with impunity,” Brown said in a statement.

Brown accused the operation of being “proficient in the art of secreting and laundering untold millions of dollars … through casinos, shell corporations, and bank accounts in a variety of locations around the globe.”

A 33-count indictment filed in Queens County Supreme Court charges the defendants ran gambling collection rooms in Miami and St. Maarten. Twenty of the defendants are also being sued in a civil case, Brown’s office said in the press release.

Among those facing charges are Primary Development Inc. and its Chief Executive Officer Maurice Freeman, accused of developing a sports betting Web site called Playwithal.com. Also indicted were Prolexic Technologies Inc., accused of providing security for Playwithal’s servers, and Digital Solutions SA of Costa Rica and its U.S. counterpart D.S. Networks SA Inc., which allegedly provided the gambling site with servers, data and software.

The indictment accuses James W. Giordano of Pine Crest, Florida, of being the boss of the enterprise. Three of his family members also face charges, as do five men who allegedly worked as money collectors, and other people who performed various duties for the gambling operation.

READ THE ARTICLE AT PC WORLD

Related News

  • 21 August 2007

    Short Extension Granted to USA in Online Gambling Case

    According to our reliable sources, they tell us: In the US District Court of New Jersey, Trenton Division, papers were filed today to grant a motion on behalf of the US Department of Justice and the co-defendants, giving them a short period longer to respond to charges brought against them by the Interactive Media Entertainment and Gaming Association (iMEGA).

    Read full article
  • 31 August 2007

    NEW Date Set for iMEGA versus Gonzales (UIGEA)

    NEW Date Set for iMEGA versus Gonzales (UIGEA)Honorable Judge Mary L. cooper will hear oral arguments on TRO and Government dismissal motions.The hearing originally set for September 4th, has been moved to September 26th, in the U.S. District Court of New Jersey, Trenton Division.  The hearing date was a mutual agreement by the plaintiff whom is iMEGA and the defendants, who are, Gonzales, the U.S. Department of Justice, the Federal Trade Commission and the Federal Reserve Board of Governors.

    Read full article
  • 17 July 2006

    INTERNET GAMBLING BAN A BAD BET

    Cincinnati.Com The Enquirer Editorials The U.S. House feels Americans need to be saved from a $12 billion-a-year growth industry – Internet gambling. By a lopsided 317-93 vote, members passed the Unlawful Internet Gambling Enforcement Act on Tuesday, but exempted state-run lotteries and online horse-race betting. Were the Senate to go along with it, the bill would make online sports betting, poker and other popular Internet casino games illegal.

    Read full article