E-Gold indictments

[Dark Horse]

http://www.usdoj.gov/opa/pr/2007/April/07_crm_301.html

[Korchnoi]

ugh

[bigboydan]

Looks like the DOJ is gonna go after every processor out there. I just have to wonder who's next is all.

[hitbitritz]

"go after" - they are prosecuting criminal acts.

[SBR_John]

They had to stretch a few laws to go after them. They could get Western Union any day of the week on the exact same thing.

[tblues2005]

SBR I think your exactly right on there.

[hitbitritz]

now this is true. without knowing a ton about the case, i can't disagree with you. it seemed like these guys were a little shady though. the western union thing absolutley amazes me. i guess western unions motto of "don't ask" for cash transactions at locations may end up saving them. have you seen western union stock in the last 5-10 yrs? that was the safest gamble out there.

[durito]

It does not appear as if this has anything to do with online gambling. It's not like e-gold was ever a widely used funding option for books.

The indictment alleges that E‑Gold has been a highly favored method of payment by operators of investment scams, credit card and identity fraud, and sellers of online child pornography. The indictment alleges that the defendants conducted funds transfers on behalf of their customers, knowing that the funds involved were the proceeds of unlawful activity; namely child exploitation, credit card fraud, and wire (investment) fraud; and thereby violated federal money laundering statutes. The indictment further alleges that the defendants operated the E‑Gold operation without a license in the District of Columbia or any other state, or registering with the federal government, and thereby violated federal and state money transmitting laws. The indictment alleges that this conduct occurred at various times from 1999 through December 2005.

[bigboydan]

They could get Western Union any day of the week on the exact same thing.

As well as MoneyGrams. However, I do have to question if they could nail FedEx though.

[hitbitritz]

well in that case they can get every bank out there...let's get realistic...the difference between e-gold and neteller and fedex is that the neteller and e-gold were set up to fund gambling. what % of western union or fedex's business is offshore gambling? a small %. extremely small. also, fedex has no knowledge of what they are shipping.

western union confuses me, because from the top they state its illegal to send $ for gambling, yet htey have these offshore offices that obviously knowingly assist the gambling companies...im not sure how they really do it.

there is no way any mail service will get busted. checks have been sent through normal US GOVT postal service, so the govt would be guilty too, in theory...

[freebie]

why don't just nail every companies. Great! just shut down the US economy.

[hitbitritz]

lol...exactly. the line has to be drawn somewhere. i think they are going after individuals, as opposed to really going after companies, fedex or any bank will never be busted.

talk about hypocritical ... the govt hasn't gone after any banks that have funded online gambling...they all processed transactions at some time, and there are still some banks that issue gift cards that pay gambling operations...

[bigloser]

Dont think these guys will rollover. Could be a useful test case.

http://www.e-gold.com/letter3.html

[bigloser]

and

https://www.floridatoday.com/apps/pbcs.dll/article?AID=/20070428/BREAKINGNEWS/70428010/1086

[Seattle Slew]

I think in Western Union's case, they can point to their disclaimer and the fact they have banned many people for possibly using the service for gambling transactions.

[SBR_John]

It appears the feds just want to criminalize all instances of monetary privacy and eliminate the possibility of anonymous financial servicing as a choice in the marketplace. Does privacy really equal 'laundering,' simply because Big Brother dislikes a company for choosing to use an authentication system instead of an identification scheme? In the end, if one private party in a transaction does want to identify themselves as Mickey Mouse, and the other private party tolerates it, what business is that of Uncle Sam?

This was posted by a person on Floridatoday

[20Four7]

What kind of name is Uncle Sam? I think I"d trust mickey mouse over Uncle Sam......

[Maledetto]

This guys were turning a blind eye to too many stuff, mainly to id theft. Feds were onto them since 05 when they busted a ring of Chinese card swipers in the Bay Area. They are done. Surely they are going to use it for PR but it has little to do with the anti gambling crusade.