Prosecutors Felt Compelled to Act Following Publication of Courier-News Article

Written by :

C Costigan

Published on :

15 April, 2011

The US Attorney’s Office knew they had to act decisively following publication of an article detailing online poker payment processor Daniel Tzvetkoff’s cooperation with federal authorities. Reporter Paul Toohey detailed Tvetkoff’s “disguised” transactions, a few dozen of which have since been obtained by Gambling911.com.

Within hours of the article being published, authorities descended upon 11 defendants from the three largest US-facing Internet poker rooms, PokerStars, Full Tilt Poker and UB.com. Two of the eleven individuals were apprehended in Nevada and Utah on Friday morning.

Founders of the three poker rooms have been charged with bank fraud, money laundering and illegal gambling offenses. All of the website domains were apparently seized, though Absolute Poker and Full Tilt Poker appeared to be back up in some locations. It was unclear if local routers were in the process of being dismantled.

The U.S. alleges the poker companies used fraudulent methods to circumvent federal law and trick U.S. banks and credit card issuers unwilling to process their payments.

In 2009, the US Attorney’s office indicted Douglas Rennick, another payment processor for Full Tilt Poker and PokerStars, the day after Gambling911.com filed a Motion to Intervene as a means of uncovering defendants named in a seizure affidavit.

Toohey had attempted to access information from the US Attorney’s office for the past two weeks but was unsuccessful.

“These defendants concocted an elaborate criminal fraud scheme, alternately tricking some U.S. banks and effectively bribing others to assure the continued flow of billions in illegal gambling profits,” Bharara said in a statement. “Foreign firms that choose to operate in the United States are not free to flout the laws they don’t like simply because they can’t bear to be parted from their profits."

Antsy poker players were trying to gather information from the popular TwoPlusTwo.com posting forum with over 700 viewing the “Legislative” section, a record. Close to 6000 people had accessed the thread related to these indictments within a matter of three hours.

This story continues to develop….Please bookmark this website and follow us on Twitter 24/7.

- Christopher Costigan, Gambling911.com Publisher

Crime

Gambling News

Poker

Arrested Salt Lake City Utah Bank Robbery Suspect Claims He Was Coerced, Owed $19K in Gambling Debts by Accomplice

Fidel Ybarra says he was forced into committing the crime by Thomas Domingo Bustos, 31 while Brelyn Sanchez, 37, also allegedly participated.

Sarasota Florida Establishments Latest in State to Be Hit By Gambling Raids

Three alleged illegal gambling establishments in Englewood, Florida are the latest to be hit by gambling raids in the state that have thus far resulted in more than 184 illegal gambling arcades being shut down over the last year.

Another Arrest Warrant Issued for Disgraced Nevada Sports Handicapper Vegas Dave

David Oancea, known to his social media followers as Vegas Dave, was found in contempt of court once again after the social media influencer failed to show up for court proceedings in a protracted civil case in which he owes debtors tens of millions of dollars.

Feds: Hammond Indiana Area Alleged Gambling Ring Operator Sent Witnessess Death Threats From Church

James "Jimmy the Greek" Gerodemos took video of flaming memorial candles in the back of a church, candles to honor the dead, and then sent the video to degenerate gamblers who owed money to his bookies, according to court filings.