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Seven individuals and four companies accused of conspiring to violate laws prohibiting Internet gambling
American news wire services reported late Friday that anti-online gambling operations in Utah have netted seven individuals and four companies accused of conspiring to violate laws prohibiting Internet gambling. The defendants live in Las Vegas, but two of the companies were based in Draper, a Salt Lake City suburb, according to the indictment.
The reports reveal that a federal grand jury in Salt Lake City returned a 34-count indictment earlier this week charging the accused with conspiring to violate laws prohibiting Internet gambling, according to U.S. Attorney Brett L. Tolman for the District of Utah, and Special Agent in Charge Wes Eddy of the IRS Criminal Investigation Division's Las Vegas Field Office.
The indictment was apparently unsealed on May 10, 2007, and alleges that the defendants operated a business that helped Internet gambling websites to disguise credit card charges for gambling, thereby deceiving credit card issuers who otherwise would not have authorised the transactions.
Further allegations in the indictment claim that the defendants' businesses also assisted Internet gambling websites by arranging fund transfers between bettors in the United States and various Internet gambling websites using Western Union wire transfers.
One Internet gambling website offering sports and casino betting, BetUS, is also charged with conspiring with the individuals named in the indictment.
The charges cover a period of some time and involve over $150 million.
Charged in the indictment are Baron Lombardo, 46, of Las Vegas; Richard Carson-Selman, 51, of Las Vegas; Henry G. Bankey, 49, of Las Vegas; Francisco Lombardo a.k.a. Frank Lombardo, 52, of Las Vegas; Count C. Lombardo, 43, of Las Vegas; Tina I. Hill, 32, of Sandy, Utah and Las Vegas; Kimberlie Lombardo a.k.a. Kittie Lombardo, 43, of Las Vegas; CurrenC Ltd., also known as CurrenC WorldWide, LTD., of Road Town, Tortola, British Virgin Islands; Gateway Technologies, LLC., of Draper, Utah; Hill Financial Services, Inc., of Draper, Utah, and Las Vegas; and BetUS of Kanawahke, Canada.
U.S. Attorney Brett L. Tolman claimed that virtually all Internet gambling is illegal, saying: "Individuals and businesses that facilitate illegal Internet gambling are violating numerous federal and state laws. 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."
"We now have a body of information technology and strategy that can cross many jurisdictions," the official later told 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.
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, Tolman said. "There are layers of facade that have to be pulled back and uncovered."
Another U.S. official, IRS Special Agent in Charge Wes Eddy commented that Internet gambling, along with other types of 'illegal e-commerce,' are areas of interest to IRS Criminal Investigation.
"Laundering money from illegal activity such as illegal internet gambling is a crime," he said. "Regardless of how the money changes hands - via cash, check, wire transfers or credit cards-and regardless of where the money is stored - in a United States financial institution or an off shore bank - we will trace the funds and seize them. IRS Criminal Investigation will vigorously investigate and prosecute the owners and operators of these illegal enterprises to the fullest extent possible."
The defendants are charged with RICO conspiracy, bank fraud, violations of the wire-wager act, and money laundering. In addition to the criminal charges, the indictment also contains a forfeiture provision seeking confiscation of $150 million as well as real estate, vehicles, and funds in numerous bank accounts.
The indictments go into some detail, identifying the individual defendants and three related businesses:
CurrenC, LTD, also known as CurrenC Worldwide LTD;
Gateway Technologies, LLC;
Hill Financial Services.
BetUS is also implicated with allegations of conspiracy to promote illegal Internet gambling in the United States. 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. BetonSports has effectively been closed to US business since last year's Department of Justice actions against it.
The defendants are also accused of conspiring to offer illegal Internet gambling websites another payment processing option through Western Union wire transfers, alleging that the defendants caused the illegal Internet gambling website customers to wire funds through Western Union to people in the Philippines who were associated with the defendants. The defendants then caused these associates in the Philippines to transfer funds to accounts controlled by the defendants.
In order to operate their illegal payment processing business, the defendants allegedly created a website they called "the Gateway," which was an automated collector and processor of illegal Internet gambling funding transactions. The indictment alleges that the defendants caused the Gateway to misclassify the transactions to Visa and MasterCard, representing that the transactions were for something other than gambling.
The charges claim that the defendants used offshore accounts to receive the proceeds of their payment processing business, and then caused this money to be transferred to their client websites. For their services, the defendants collected per-transaction fees from their clients.
The proceeds were then transferred to businesses in the United States under their control, including Gateway Technologies and Hill Financial. The defendants also used trusts, including Bablcom Domestic Non Grantor Insurance Trust, Landbaron Ultra Trust, Behnke Domestic Non Grantor Insurance Trust, Lime Light Domestic Non Grantor Insurance Trust and Red Dogg Ultra Trust, to conceal their profits from their illegal payment processing business, the authorities claim. The defendants then used the funds transferred to trust bank accounts to make investments and to buy real property, cars, and other personal property.
None of the defendants were in custody when we went to press. Tolman said the government is not seeking their detention pending the hearing because they are not considered flight risks or threats to the community.
Richard Carson-Selman was arrested on May 10, 2007, in Las Vegas. He had an initial appearance in Las Vegas yesterday and was released on conditions under the supervision of pre-trial services.
Baron Lombardo will self-surrender in Las Vegas and will have an initial appearance. All of the defendants are scheduled to be arraigned in U.S. District Court in Salt Lake City on Wednesday, May 30, at 10 a.m. before U.S. Magistrate Judge Paul Warner.
The potential maximum penalties for the counts in the indictment include 20 years for racketeering conspiracy; 30 years for bank fraud; two years for transmission of wagers/wagering information; and 20 years for money laundering.
The case is being investigated by the IRS Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney D. Loren Washburn of the District of Utah and trial attorney Marty Woelfle of the Criminal Division's Organized Crime and Racketeering Section. |
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发表于 2007-5-13 06:31
