The Feds Have Filed New Charges Against Saga Online Payment Processor
07 August 2009
Our friends in the Federal Prosecutors Office for the Southern District of New York (SDNY) are at it again. This is the same office which ordered the arrests of NETeller co-founders John LeFebvre and Stephen Lawrence in 2007. They also froze $55 million of NETeller funds.
What is the SDNY up to now? They have indicted a Canadian resident, Douglas Rennick, for money laundering, bank fraud, and operating an illegal gambling business. This last one is for supposedly processing payments for online casinos. According to the indictment, he has transferred more than $350 million from a bank in Cyprus to several U.S. banks to pay funds to gamblers in the U.S.
Douglas Rennick faces up to a total of 55 years in prison if convicted on all charges. The maximums are 30 years for the bank fraud, 20 years for the money laundering and 5 years for the gambling. He also faces fines of up to $1.75 million. The prosecutors are also trying to take $565,000 he allegedly made for processing the illegal online gambling transactions.
In opening the various bank accounts in several banks, he is accused of falsifying or hiding the true reasons the accounts were to be used for. The charges in this case are from an investigation begun in 2006.
You can read the Indictment here.
18 August 2010$13.3 Million Forfeited In Online Gambling Case
In a story released through the Dow Jones Newswires, the defendants in the online gambling money laundering case have agreed to forfeit $13.3 million, The money was seized by the U.S. Government from two online gaming payment processors, Allied Wallet Inc. and Allied Systems Inc. both owned by Ahmad Khawaja. The FBI says this is just a small portion of what was run through the business for the first half of 2009.Read full article
09 November 2010Time Served for Michael Olaf Schütt
The 29 year old Naples man, Michael Olaf Schütt was staring down 30 years in a federal prison for money laundering. Schütt has been accused of funneling millions of internet poker money through multiple bank accounts. Instead he is now looking at a plane ride back to Germany, all though not with his American wife, after cooperating with the feds and negotiating a “substantial assistance agreement” in his case.Read full article
15 February 2011Payment Processing Inc. Facing Federal Charges
There is another payment processor being charged by the federal government for allegedly sending $44 million in winnings to bettors all across the United States. Company officials of Payment Processing Inc. are now facing charges of operating an illegal gambling business, transmission of wagers and international money laundering.There are six people named as defendants in the case that was investigated by the IRS’s Criminal Investigations Division and the U.S. Postal Inspection Service.Read full article