Payment processors, BetUS accused of money laundering
Three payment-processors have been accused of miscoding gaming transactions and funneling that money to online casinos and sportsbooks in grand jury indictments unsealed last week in Utah.
The companies, along with BetUS.com, have been charged with money laundering, bank fraud, racketeering conspiracy and violation of the wire act.
The indictment also alleges that at least on U.S. bank official had been bribed to ensure that the transactions were mislabeled.
The 34-count indictment alleges BetUS used Hill Financial Services and Gateway Technologies in Utah and CurrenC and CurrenC Worldwide in the British Virgin Islands, to deceive credit card companies into believing more than $150 million in U.S.-based transactions were not tied to online gambling. The Unlawful Internet Gambling Enforcement Act, adopted in October, made it illegal for U.S. financial institutions to process online gaming transactions.
The U.S. Attorney is attempting to recover the $150 million under RICO, the federal Racketeer Influenced and Corrupt Organizations law.
The IRS led the investigation into payment processors.
Seven people were charged in the indictment in addition to the four companies. Baron Lombardo, 46, Richard Carson-Selman, 51, Henry G. Bankey, 49, Francisco Lombardo, 52, Count C. Lombardo, 43, Tina I. Hill, 32, and Kimberlie Lombardo 43 are all Las Vegas residents. Baron, Francisco, and Count Lombardo are brothers and Kimberlie and Francisco Lombardo are married.
None of the defendants are in custody because they are not considered flight risks, according to the U.S. Attorney’s office. Richard Carson-Selman is the only person to be arrested. He was taken into custody May 10 in Las Vegas, but was released after an initial appearance in Las Vegas under the supervision of pre-trial services.
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.
Maximum penalties 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.
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Ciprian13 says:
THAT’S WHAT CAN HAPPEN WHEN YOU “GAMBLE” WITH THE IRS
One thing you shouldn’t do in your life and that is to try and “gamble” with the IRS you have no chance because these guys are proffesionals and they are looking for such scams to proove to the nation that they are indeed working for the community.
May 29th, 2007 at 5:00 am