Beverly Man Charged With Violating UIGEA

09 May 2010

The United States justice Dept. today announced that Todd Lyons, of Beverly, MA, was charged with 36 counts of racketeering and related charges, for running an illegal gambling business in the United States but with the internet site in Antigua. Lyons is one of the first persons charged with violating the Unlawful Internet Gambling Enforcement Act (UIGEA). And he is the first to be charged in Massachusetts.

All this and UIGEA doesn’t even go into effect until June 1, 2010, a good three weeks away yet.

Todd Lyons was charged under a 36 count indictment with racketeering, money laundering, operating an illegal gambling business, use of wire communication facilities to transmit wagering information, interstate travel in aid of racketeering, false tax returns and acceptance of financial instruments for unlawful Internet gambling.

Carmen M. Ortiz, U.S. Attorney, stated: “The conduct alleged in this case reveals a blatant effort to circumvent gaming and tax laws. The notion that the type of activity alleged here is legal because it is conducted over the Internet from offshore, is pure fiction.”

Lyons is suspected of operating an agent for Sports Offshore, an internet gambling site licensed in Antigua. It charges that Lyons collected over $22 million fir Sports Offshore during part of the time covered under the indictment. He is also alleged to have used Fed-ex to ship money directly to Antigua from Massachusetts.

If Lyons is convicted, he could face up to 20 years in prison for the racketeering and money laundering charges, and many more years on all the other charges. Each count also carries a three year term of supervised release and fines upward of $250,000 each.

All this under a law which is not even in effect yet. You got to love it.

Related News

  • 17 June 2010

    Virgin Group Setting Up New Game Site

    Feel like a little online wagering? Feel like doing it all in the United States? Relax… the chance is here. Virgin Gaming, is announcing on Tuesday, at the E3 video game industry show, that it will be offering video gamers online, a chance to go head to head against others players online and win large cash prizes. To get around the US laws against gambling, they have to make sure that they label their games and games of skill and not chance. That way, it is not gambling.

    Read full article
  • 16 June 2010

    Atlantic City Casinos Reject Intrastate Online Gambling

    Everything was looking rosy for online gambling in New Jersey after the June 3 3-1 vote by the Senate State Government, Wagering, Tourism & Historic Preservation Committee to pass Senate bill S490 with very few amendments.Now, the very casinos that would most benefit from that very law, have announced through the Casino Association of New Jersey (CANJ), their trade organization, that they do not want the bill to pass. CANJ represents all eleven Atlantic City casinos.

    Read full article
  • 13 June 2010

    New Danish Gambling Law Goes Back To European Commission

    Due to complaints from land based gambling companies, the new Danish gambling law is headed back to the European Commission for further review.The complaint from the land based gambling companies is that the tax provisions of the new law are unfair.This comes following reports that Danske Spil, the former state online gambling monopoly, would have to abandon it’s online poker b2b deal with the world’s leading listed online gaming company, Party gaming.

    Read full article