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A Plano, Texas sports betting ring with ties to the offshore gambling jurisdiction of Curacao has been busted by federal authorities. 18 people have been arrested in connection to this ring. *This story has been updated. See below.
The organization is said to have handled billions of dollars over a period beginning in 2001 when an undercover officer first infiltrated the group. By the mid-2000’s it became obvious that the Plano police required federal assistance upon learning how massive the operation actually was. The IRS and US attorney joined the probe in 2006.
"A lot of the agents were actually members of the very nice country clubs in which case they'd bring in bettors, you know guys that didn't have any problem betting $5,000 - $10,000 dollars on a football game," said Andrew Stover, Asst. US Attorney for the Eastern District of Texas.
About $10 million worth of property was seized by officials, including $4 million in cash and pricey sports memorabilia like signed Tiger Woods golf shoes and NBA jerseys. $4.7 million worth of the confiscated funds will go back to Plano police. Authorities confiscated stacks of gold and cash, with one safe containing more than a million dollars, according to investigators.
“These were pricey, million dollar condominiums,” Assistant US Attorney Andrew Stover told CBS 11 News.
According to Stover, “The more money and the more subagents you get to bring in money in the gambling operation, the more money that gets pushed up to the top and the more that is made.”
Transactions were run through servers and websites on the Caribbean island of Curacao, where gambling is legal; transferring money into the United States is not.
The ringleader, Albert Sidney Reed of Southlake, has been convicted of running an illegal gambling business and will spend on year in jail.
The website was run out of North Texas and targeted virtually every state, according to the complaint.
*Update - Just a quick note that, while the local Dallas area media have been reporting on this story as if these busts just occurred, all defendants have actually plead guilty.
This news story emerged Thusday as a result of the Plano, Texas police receiving their $5 million dollar check.
- Chris Costigan, Gambling911.com Publisher
