Payment Processor in Hot Water

stacy123 · #1 08-09-2009, 05:18 PM

Ooooh buddy, this guy is in hot water. I just read that a Canadian resident has been indicted by a New York Grand Jury for conspiracy charges for bank fraud, money laundering and operating an illegal gambling business for what they say, processing payments for online casinos.

Quote:

According to the indictment filed Tuesday, Douglas Rennick has been "in the business of providing payment services for Internet gambling businesses through several companies under his control" and since 2007 has transferred more than $350 million "from a bank account in Cyprus to various United States banks in order to pay funds to gamblers in the United States."

casinocitytimes

From what I read, an investigation has been ongoing on this guy since 2006. Apparently, he has been hiding his activities from the banks that he has been dealing with.

If he is found guilty, he will fave 30 years in prison for the bank fraud charge, 20 years for money laundering and 5 years for a gambling charge. The fines he may face are as much as 1.75 million!

Glad I am not this guy!

propiper · #2 08-10-2009, 06:03 AM

My first response is how in the "hell-o" can we indite a Canadian citizen!

I found this that says we may not be able to:

Quote:

"It raises the issue whether one country can apply its law to citizens of another country," said Javad Heydary, a Toronto lawyer with experience in gaming law.

"We do not have anything close to the U.S. legislation," he said, alluding to the U.S. Unlawful Internet Gambling Enforcement Act.

Mr. Heydary said that while, technically, Mr. Rennick is charged with offences that exist in Canada, the United States has been much more aggressive in attacking online gambling.

From: The Globe and Mail

The problem here is that they indicate he payed out for "poker, slot machine and other casino games." Which may hurt.

Later in this article they bring up that he claims he paid out only poker winnings and alluded to that may be something the US can't prosecute.

slotslut · #3 08-10-2009, 08:08 AM

Well this one will be one to watch....isn't this the first time US has tried to enforce the UIGEA? hope he gets a butt kicking lawyer to fight it...if he wins it will help set a Precedent.

Dyno Don · #4 08-11-2009, 06:13 AM

I don't like a person who steals either, if he has, just like anybody else and I love my Country.

But what gives our government the right to chase people from other countries when their monies happened to pass through our banks?

I think the UIGEA was an unlawful stipulation entry onto the ports act bill in the first place. So there you have it.

What makes an unlawful bill the law?
Because our lawmakers say it is?

Where were the "Peoples" votes in this?
There were none. This is fact enough that the UIGEA should be shredded as a Government error, period.