Online Casino Funds Seized Again in the USA

Published: Sunday, September 13, 2009 Online-Casinos.com

It is reported that three bank accounts owned by processing company HMD Inc., are among current targets that are experiencing trouble with the authorities in the USA regarding transactions dealing with online casinos.

Another processing company identified as Electracash Inc. was targeted by a Maryland judge earlier this year when three seizure warrants were issued on accounts in the Bank of America located in Anaheim, California. The Electracash accounts, were owned by Edward Courdy. A connection could be made because Courdy was arrested and charged with money laundering last year in the state of Maryland.

The Baltimore City Paper reported that warrants were issued on the bases that the money was "proceeds of an illegal gambling business" implying that illegal money laundering is going on. These are strong and serious allegations that the processing firm has yet to responded to. Something of interest is the common method used by the authorities in Maryland to issue the warrants. Secrecy surrounds the proceedings and affidavits on which the warrants were issued are to remain sealed by court order.

The District of Maryland which is responsible for the seizures, was signed by the Honourable Paul W. Grimm. Maryland and New York do not have restrictions on online gambling, which brings up the question, when considering that the courts have recently deemed online gambling's legal issues the responsibility of the state where is the justification for this action. An excess of $30M had been seized by the federal government in the last two months from poker winnings, using the same line of reasoning. While money during the previous seizures was returned to the customers by the casinos there has been no word to date on the casino's willingness to return these newly seized accounts.

Analyst Grant Blake, said" It certainly appears like there may be a connection between the two seizures,' adding, "Even if there is no connection, it appears obvious that these seizures will not be the end of the process. The federal government seems intent on sending a message to online casinos that are operating in the US."