Internet gambling sites owners charged with fraud

NEW YORK Fri Apr 15, 2011 3:42pm EDT

Related Topics

NEW YORK (Reuters) - The owners of three of the largest Internet poker companies operating in the United States were accused on Friday of tricking regulators and banks into processing billions of dollars of illegal Internet gambling proceeds.

Eleven people, including the owners of Full Tilt Poker, Absolute Poker and PokerStars, were charged with violating U.S. anti-Internet gambling laws, according to charges filed by federal prosecutors in Manhattan.

Prosecutors also filed civil money laundering charges seeking to recover at least $3 billion from the companies, which are all based overseas, court documents said.

The Internet domain names of the companies were also seized. Representatives for the companies could not immediately be reached to comment on the charges.

Two of the men were arrested on Friday, one is expected to turn himself in to law enforcement and eight others are not currently in the United States, prosecutors said.

Raymond Bitar, 39, of Full Tilt Poker and Isai Scheinberg, 64, of PokerStars were charged with violating the Unlawful Internet Gambling Enforcement Act and other laws. Absolute Poker owners Brent Beckley, 31, and Scott Tom, 31, faced similar charges.

The criminal charges outlined a scheme by the company owners and some of their employees to direct the gambling profits to online shell companies that would appear legitimate to banks processing payments.

The charges are part of a crackdown on Internet gambling in the United States, where it has been illegal since 2006.

In March, Wynn Resorts Ltd said it had entered into a partnership with PokerStars, and that they would work for passage of U.S. legislation on Internet poker.

U.S. lawmakers have in the past tried to pass legislation legalizing Internet gambling in the hope of reaping billions in tax revenue.

(Reporting by Basil Katz; Editing by Steve Orlofsky)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (7)
Artemis360 wrote:
Unheard of… Like the Mafia holding on to an “Ace” card.

Apr 15, 2011 3:12pm EDT  --  Report as abuse
JamVee wrote:
Another perfect example of anoter government law put into effect over 5 years ago . . . THAT THEY ARE JUST NOW GETTING AROUND TO ENFORCING!

Hard to believe our politicians can be so stupid as to enact laws we are not prepared to enforce . . . And they keep doing it over and over again, as if that is what we need . . . MORE LAWS?

Apr 15, 2011 3:26pm EDT  --  Report as abuse
RedBear57 wrote:
Actually, this is just another example of a pointless law that only attempts to enforce morality. There should be no laws against Internet Gambling, as long as all participants are of legal age and taxes are properly being paid on all proceeds.

Apr 15, 2011 4:10pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.