No Relief for Rennick Online Gambling Case Continues

Published Tuesday, February 02, 2010 - Online-Casinos.com

The USA it is a tough environment for the anyone who is connected with the former online gambling businesses that used to go on in that country. Since the Federal government decided to shred the operations of internet gambling in the States various deals have been made for those caught up in the new rules. The department of justice has been getting millions of dollars from companies and individuals that are considered in violation of the ban on online gambling.

Federal indictments were imposed without any apparent fairness, at random, targeting the big players and small. The Department of Justice and federal prosecution have not only made life difficult for the actual gambling operators but have also made payment processors of transactions of gaming online pay the price of prosecution.

A three count indictment, including a conspiracy to operate an illegal gambling business, conspiracy to commit bank fraud, and conspiracy to engage in money laundering was levelled at CEO and owner of Account Services Corp and KJB Financial Corp., Douglas Rennick. These two payment processing firms with Rennick as head had been accused of processing payments for online casinos and poker rooms, which is illegal under the UIGEA. Rennick had allegedly transferred over $350 million dollars from the United States to international gambling sites.

Federal prosecutors are aiming collect $565.9 million dollars in forfeitures. Rennick had been held in contempt of court after refusing to comply with a grand jury subpoena. Rennick and his attorneys had argued that Rennick's companies could meet the subpoena with non-compliance, stating that this would violate Rennick's rights under the Fifth Amendment, an integral component of the Bill of Rights. Under the Fifth Amendment, Rennick is protected against self incrimination. According to the Wall Street Journal, a panel of judges stated. "We disagree and affirm the district court's contempt order," So now Mr. Rennick having lost his appeal will go to trial, with 30 years of jail time hanging over his head should he not be acquitted. 

 

 

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