First Unlawful Internet Gambling Enforcement Act Conviction Filed

Published Tuesday, December 06, 2011 -

Its official, the first conviction filed under the Unlawful Internet Gambling Enforcement Act (UIGEA) has happened. Where to from here is what many lawyers are saying as the jury trial in Massachusetts returned guilty verdicts against Daniel Eremian and Todd Lyons on charges that included racketeering, plus  operating an illegal gambling business and Wire Act offenses.

The Sports Offshore the betting company the two men ran was operating from the Caribbean island nation of Antigua and Barbuda but was not licensed by that jurisdiction. Lyons was found guilty of ‘acceptance of financial instruments for unlawful internet gambling’, specifically prohibited under the terms of the UIGEA. Lyons collected the debts from bettors on sporting events in the USA and forwarded those proceeds to the Antigua location.
In March the two convicted men will be sentenced. The sentences carry maximum terms in prison of twenty years on the racketeering charges, two for the Wire Act conviction and five for illegal gambling. Lyons faces an additional three years on charges of filing false tax returns, five years on charges of interstate travel for the purpose of racketeering and associated UIGEA violations, plus another 20 years for money laundering. Fines are also leveled against the charged men.

US Attorney Carmen M. Ortiz said in a statement that the convictions, “should serve as a message to those involved with illegal gambling schemes that the government will apply the full weight of its resources to identify, investigate and prosecute individuals who seek to profit from offshore gambling.”
This is indeed a strong message for anyone that may try this sort of thing in the USA but two defendants Robert Eremian and Richard Sullivan, wanted in this case are still at large.
The two convicted men were released after their conviction after promising to remain in the State. A detention hearing will proceed very soon. Prosecutors believe they are serious flight risks.



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