Another Shot Across Online Gambling's Bows
Published: Wednesday, January 17, 2007 Online-Casinos.com
ANOTHER SHOT ACROSS ONLINE GAMBLING'S BOWS
US enforcement appears convinced that the world is their jurisdictional oyster
The recent arrests of Neteller ex-directors Stephen Lawrence and John Lefebvre whilst visiting the United States highlights once again that if American officialdom can get its hands on Internet gaming executives, it is prepared to bring charges that stride over international boundaries.
Anyone reading the press release from the US Attorney General's office that reported the arrests can have little doubt from the tone and content that the officials involved know very well how effective threats and aggression can be, even in an industry that has hitherto thought itself safe through companies positioning themselves outside US legal jurisdiction.
Apart from announcing the factual details and allegations of wrongdoing against the former Neteller execs, who appear to be the unfortunate pawns in a bigger game to intimidate Isle of Man-based Neteller, the arrest anouncement was redolent with historical examples of previous enforcement actions and "we-mean-business" news bytes.
Take a look at the following, for example:
"This prosecution is part of the United States Department of Justice's effort to combat unlawful internet gambling through, among other things, the implementation of the federal anti-money laundering statutes.
"Other recent examples of the Justice Department's efforts in this regard include the indictments of two offshore internet gambling companies - Worldwide Telesports, Inc., (indictment unsealed on May 17, 2006 in the United States District Court for the District of Columbia) and BetonSports, PLC, a publicly traded holding company that owns a number of Internet sportsbooks and casinos, and its founder, Gary Stephen Kaplan (indictment unsealed July 17, 2006 in the United States District Court for the Eastern District of Missouri).
"Additionally, in July 2003, one of Neteller's competitors, PayPal, and its parent eBay, entered into a civil settlement agreement with the United States Attorney's Office for the Eastern District of Missouri to settle allegations it aided in illegal offshore and on-line gambling activities. As part of the agreement, PayPal agreed to forfeit $10 million, representing proceeds derived by PayPal from the processing of illegal gambling transactions."
and this:
"Mr. GARCIA [the United States Attorney for the Southern District of New York] stated, 'Internet gambling has become a multibillion-dollar industry that derives a major portion of its revenues from United States citizens. STEPHEN ERIC LAWRENCE and JOHN DAVID LEFEBVRE knew when they took their company public that its activities, as well as those of the internet gambling companies it assisted, were illegal in the United States. Blatant violations of U.S. law are not a mere 'risk' to be disclosed to prospective investors. Criminal prosecutions related to online gambling will be pursued even in cases where assets and defendants are positioned outside of the United States.'"
and this:
"FBI Assistant Director MERSHON stated: 'Internet gambling is a multibillion-dollar industry. A significant portion of that is the illegal handling of Americans' bets with offshore gaming companies, which amounts to a colossal criminal enterprise masquerading as legitimate business. There is ample indication these defendants knew the American market for their services was illegal. The FBI is adamant about shutting off the flow of illegal cash.'"
Assistant United States Attorneys TIMOTHY J. TREANOR, CHRISTOPHER P. CONNIFF, and CHRISTINE MEDING are in charge of the prosecutions, whilst the FBI Special Agent charged with the responsibility for the investigations is Maryann Goldman.
The announcement closes with a reminder to all - including the enforcement officials: "The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty."
