BetUS and others criminally charged in Utah

[JC]

http://www.pr-inside.com/seven-individuals-and-four-companies-indicted-r122113.htm

Seven Individuals and Four Companies Indicted for Operating Illegal Credit Card Transaction, Processing Business


2007-05-11 21:43:32 -

SALT LAKE CITY, May 11 /PRNewswire-USNewswire/ -- A federal grand jury in Salt Lake City returned a 34-count indictment Wednesday afternoon charging seven individuals and four companies with conspiring to violate laws prohibiting Internet gambling, U.S. Attorney Brett L. Tolman for the District of Utah, and Special Agent in Charge Wes Eddy of the IRS Criminal Investigation Division's Las Vegas Field Office.

The indictment, unsealed on May 10, 2007, alleges the defendants operated a business that helped Internet gambling websites to disguise credit card charges for gambling as charges for


something else, thereby deceiving credit card issuers who otherwise would not have authorized the transactions. The indictment also alleges the defendants' businesses also assisted Internet gambling websites by arranging fund transfers between bettors in the United States and various Internet gambling websites using Western Union wire transfers. One Internet gambling website, BetUS, is also charged with conspiring with the individuals named in the indictment. According to BetUS's website, BetUS provides internet based sports and casino gambling.
During the course of their conspiracy, the indictment alleges that the defendants facilitated the payment of more than $150 million to illegal Internet gambling websites.

Charged in the indictment are Baron Lombardo, 46, of Las Vegas; Richard Carson-Selman, 51, of Las Vegas; Henry G. Bankey, 49, of Las Vegas; Francisco Lombardo a.k.a. Frank Lombardo, 52, of Las Vegas; Count C. Lombardo, 43, of Las Vegas; Tina I. Hill, 32, of Sandy, Utah and Las Vegas; Kimberlie Lombardo a.k.a. Kittie Lombardo, 43, of Las Vegas; CurrenC, Ltd., also known as CurrenC WorldWide, LTD., of Road Town, Tortola, British Virgin Islands; Gateway Technologies, LLC., of Draper, Utah; Hill Financial Services, Inc., of Draper, Utah, and Las Vegas; and BetUS of Kanawahke, Canada.

"Virtually all Internet gambling is illegal. Individuals and businesses that facilitate illegal Internet gambling are violating numerous federal and state laws," U.S. Attorney Brett L. Tolman said. "Payment processors who attempt to hide the true nature of the transactions they are conducting and the Internet gambling websites that use these payment processors will be prosecuted and brought to justice."

"Internet gambling, along with other types of 'illegal e-commerce,' are areas of interest to IRS Criminal Investigation," IRS Special Agent in Charge Eddy said. "Laundering money from illegal activity such as illegal internet gambling is a crime. Regardless of how the money changes hands-via cash, check, wire transfers or credit cards-and regardless of where the money is stored-in a United States financial institution or an off shore bank-we will trace the funds and seize them. IRS Criminal Investigation will vigorously investigate and prosecute the owners and operators of these illegal enterprises to the fullest extent possible."

The defendants are charged with RICO conspiracy, bank fraud, violations of the wire-wager act, and money laundering. In addition to the criminal charges, the indictment also contains a forfeiture provision seeking forfeiture of $150 million as well as real estate, vehicles, and funds in numerous bank accounts.

The indictment alleges the individual defendants and three related businesses, CurrenC, LTD, also known as CurrenC Worldwide LTD; Gateway Technologies, LLC; Hill Financial Services, as well as BetUS, conspired to promote illegal Internet gambling in the United States. The indictment alleges the defendants operated a payment processing business that catered to illegal Internet gambling businesses. As a part of their payment processing services, the indictment alleges that the defendants purposefully misclassified credit card transactions to fool banks into processing Internet gambling charges; collected monies transferred from bettors in the United States via credit card transactions; and transferred the collected funds to various Internet gambling web site operators. The indictment further alleges that the purpose of the defendants' business was to help gambling websites have their transactions approved by **** and ********** issuing banks, which would not knowingly authorize Internet gambling transactions.

The indictment alleges that the defendants also conspired to offer their illegal Internet gambling websites another payment processing option through Western Union wire transfers. According to the indictment, the defendants caused the illegal Internet gambling website's customers to wire funds through Western Union to people in the Philippines who were associated with the defendants. The defendants then caused these associates in the Philippines to transfer funds to accounts controlled by the defendants.

In order to operate their illegal payment processing business, the indictment alleges the defendants created a website they called "the Gateway." The Gateway was an automated collector and processor of illegal Internet gambling funding transactions. The indictment alleges that the defendants caused the Gateway to misclassify the transactions to **** and **********, representing that the transactions were for something other than gambling. In this manner, the defendants assisted illegal Internet gambling websites in having their gambling transactions authorized by **** and ********** issuing banks.

The indictment further alleges that the defendants used offshore accounts to receive the proceeds of their payment processing business. The defendants then caused this money to be transferred to their client websites. For their services, the defendants collected per-transaction fees from their clients. The defendants allegedly transferred their proceeds to businesses in the United States that they owned and controlled, including Gateway Technologies and Hill Financial. According to the indictment, the defendants also used trusts, including Bablcom Domestic Non Grantor Insurance Trust, Landbaron Ultra Trust, Behnke Domestic Non Grantor Insurance Trust, Lime Light Domestic Non Grantor Insurance Trust and Red Dogg Ultra Trust, to conceal their profits from their illegal payment processing business. The defendants then used the funds transferred to trust bank accounts to make investments and to buy real property, cars, and other personal property.

None of the defendants are in custody at this time. Richard Carson-Selman was arrested on May 10, 2007, in Las Vegas. He had an initial appearance in Las Vegas yesterday and was released on conditions under the supervision of pre-trial services. Baron Lombardo will self-surrender in Las Vegas today and will have an initial appearance. 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.

The potential maximum penalties for the counts in the indictment 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.

Defendants charged in indictments are presumed innocent unless or until proven guilty in court.

The case is being investigated by the IRS Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney D. Loren Washburn of the District of Utah and trial attorney Marty Woelfle of the Criminal Division's Organized Crime and Racketeering Section.

Source: U.S. Department of Justice

[SBR_John]

Looks like the Feds got the scoop on BetUS's credit card processor. Too many dots connected. Looks like a BetUS person on the inside had a reason to be talkative.

On the surface it doesn't look like this will do much to their operation and no mention of cash being seized.

[DrunkenLullaby]

I hereby nominate (in advance) the next person who posts processor info in any thread on this board for a lobotomy.

The scope of the above is, to me, scarier than any of the previous indictments - including Neteller.

[WWTSblows]

BetUS gets illegal deposits and STILL can't manage to make payouts!

Companies like BetUS are the reason I want the US gov't to regulate this stuff.

[Estevens]

I just talked to a friend that's still working for the company and they told me the managment staff is playing it off to the employees, howeveer amoung themselves they are saying chances are they will not be here for football season, they already hardly use Western Union when the bill that passed goes into effect on July 19th or so Bank wires and ACH are out the window no more credit cards (and no one else will take them because they either screwed them or they are to big and do not want to bring heat to themselves), so that leaves Money gram and the US is already starting to put presure on them like they have with Western Union. Everyone wave by by to Betus, jaja

[Shuswapper]

Bodog's operations are a carbon copy of BetUs. Can anyone give me an intelligent, reasoned opinion as to why Bodog would be able to avoid prosecution? And then I'll get someone to explain it to me. Jajaja. I just heard this Air guy was on the cover of Forbes last year, and he said he was untouchable. Is this true? Jajajaja.

[Shuswapper]

I hereby nominate (in advance) the next person who posts processor info in any thread on this board for a lobotomy.

The scope of the above is, to me, scarier than any of the previous indictments - including Neteller.

I had read somewhere that the Bodog guy was a big philanthropist. I must say, hiring poor Philipinos to send ** payouts is certainly a novel way of helping the down-trodden. Kudos to Mr. Air, he really is a trail-blazer. I'd rather have a bottle in front of me than a frontal lobotomy.

[Mason]

BetUS allegedly quit using this processor over a year ago so they should not be impacted financially.

BOS is also no longer using this processor as we all know.

What about the other 4 unamed books included in the indictment though? The countries mentioned make it sound like they are books everyone here thinks highly of. Hope none of the unamed books has a ton of money wrapped up with these guys currently.

[SBR_John]

BetUS in many ways is like BetOnSports. In fact the same partners started both.

I think they will be here in football. They have known they were the #1 target on the "next" list for a long time. They began taking counter measures as far back as the fall of last year. They could bail but if they did it would be a business decision and not a legal one imo.

[tblues2005]

I think your correct SBRJohn, I know for sure they have been on the list of scams that they really want to get. It just depends if they can get a processor which might be difficult to get now. I certianly hope so they have scamed enough people, thats for sure.

[Estevens]

just so everyone understands they have not stoped using cc procusor over a year ago they where using it up till the day they went day they went down it was thier many way of making money so anyone that want's to use them this minute is as the amerincans say "up shits creek" If kevn did a better job at doing his job instead of getting involved with everyone ellses job then maybe the company would be in better shap now, but it does not matter they will not make it to football season any way.

[learn2play]

Once again the one who thinks he is smart...

Estevens is nothing but a whining ex-employee.....want proof go read the other post on betus.

Nothing intelligent comes out of your mouth.

[DrunkenLullaby]

I hate bringing the censorship thing up again, because I AM all about free speech. However, if any Mod would consider editing a recent post by Marc in the Sportsbook.com thread that gives all the info about one of Sportsbook's processors, I think it would be a good idea....an especially beneficial one to those of us who are STILL waiting to receive our first checks.

If you don't, you don't, but it didn't hurt me to ask.

[SBR_John]

I'll have that checked out DL. Thanks.

[slear1321]

Payout

I have been with Betus for over 5 years and have always been paid in a responable time. After March Madness I hit for $4,000 and because I dont do anything on Baseball I wanted to collect.
So on April 2 I requested my $4,000. I have been going back and forth since. I have heard every excuse you could image. The money was taken out of my account May 3 and I was told I should have it "soon" two to three days. its been over 12.
My question is does think Im going to see this money? Or is it they really are having a harder time processing payouts?

Also besides just eating it is there any options?

[DrunkenLullaby]

John, Marc took care of it by himself, but thanks for considering it.

[Estevens]

I have been with Betus for over 5 years and have always been paid in a responable time. After March Madness I hit for $4,000 and because I dont do anything on Baseball I wanted to collect.
So on April 2 I requested my $4,000. I have been going back and forth since. I have heard every excuse you could image. The money was taken out of my account May 3 and I was told I should have it "soon" two to three days. its been over 12.
My question is does think Im going to see this money? Or is it they really are having a harder time processing payouts?

Also besides just eating it is there any options?

I hope you will see it, but to be honest with the new news on the inditement I doubt it, however they may try to pay some people to try and clear their name before they go under

[learn2play]

I have been with Betus for over 5 years and have always been paid in a responable time. After March Madness I hit for $4,000 and because I dont do anything on Baseball I wanted to collect.
So on April 2 I requested my $4,000. I have been going back and forth since. I have heard every excuse you could image. The money was taken out of my account May 3 and I was told I should have it "soon" two to three days. its been over 12.
My question is does think Im going to see this money? Or is it they really are having a harder time processing payouts?

Also besides just eating it is there any options?

Hey Slear1321, at the moment I think you have nothing to worry about.. I asked for my money a month ago and just got my $1200.00 about a week ago by FedEX. I asked a supervisor in Customer Service and they were honest on the day it was sent. Unfornuately it still took about 15 days for my check to be sent to their processor. Post back in the forum when you got yours.

But with this legal issue popping up I dont think their is anything to worry about right, but we will see how it goes over a few months. I am gonna request for the rest of my balance from BetUS for the summer to see how things turn out. Maybe play in the fall because I only play thier baseball right now anyways so I can always go do that at the Greek.

Just try to be patient, I lost my cool the first time thier payout issue got F@@Ked up but I hung on to a little faith until I got my check.

[SBR_John]

John, Marc took care of it by himself, but thanks for considering it.

I saw that.

As much as we care about the industry as a whole I think the staff at SBR ia against censoring this information. We will if a principal requests us to do so in writing. I appreciate the posters using common sense when posting information.

[Estevens]

Seven Las Vegas residents charged with involvement in an extensive Web-gambling ring pleaded not guilty at an arraignment and detention hearing in U.S. District Court Wednesday.

Richard Carson-Selman, Henry Bankey, Tina Hill, Lombardo brothers Baron, Count and Francisco, and Francisco's wife Kimberlie were charged with 34 felony counts of racketeering, bank fraud, wire fraud and money laundering, which carry sentences up to 20-30 years in prison.

Prosecutors say members of the group were involved in a seven-year-long international money laundering service, which would distribute moneys from sports Internet gambling Web sites to a series of international bank accounts and computer servers. The funds would then be forwarded to Utah-based companies.

From 2000 to 2007 court documents state the group processed more than $150 million in proceeds from the gambling Web sites.

Some 40 boxes of evidence and multiple computer hard drives were confiscated by authorities and are believed to contain extensive evidence.

CurrenC LTD, Gateway technologies, Hill Financial services and Betus are a few of a number of companies prosecutors say were created by the group and then were used to create and operate the credit card and wire transfer operations.

According to court documents, gambling patrons could place bets on sporting events and gambling games using Web sites such as Betonsports PLC and Betus.

The information from these sites was sent to servers located outside of the United States — the United Kingdom, Jamaica and Korea — among other countries. Servers would forward the transactions to Draper- based companies Gateway technologies and Hill Financial services and then pass those transactions on to the Internet gambling site owners.

Authorities said the case was uncovered when the IRS noticed several strange transactions from the companies and outside information was revealed.

No members of the group were detained, but Judge Paul Warner had them surrender their passports and restricted them from movement outside of Utah and Nevada unless pretrial services receives and approves prior notification.

Richard Carson-Selman was exempted from surrendering his passport on the condition he notify pretrial services before traveling outside the country as an independent contractor for Edelweiss, a credit card manufacturing company in Europe.

As part of the federal prosecution, the group was served notice under the Rackeeter Influenced and Corrupt Organizations (RICO) statute that in the event any defendant is convicted, the government will seek seizure of multiple assets. In addition to the millions in multiple off-shore accounts, prosecutors identified several properties in Las Vegas and high-end cars they believe were purchased with ill-gotten funds. The laundry list includes a 2004 Maserati Spyder, a Lincoln Town Car and a Mercedes Benz.

A status conference for the defendants is set for Aug. 6 before U.S. District Judge Paul Cassell.