Feeds

Feds indict poker sites, seize domains

Bank fraud, illegal gambling, money laundering charges

High performance access to file storage

The founders of three of the internet's largest gambling sites have been indicted and charged with bank fraud, money laundering and illegal gambling offenses by US authorities.

Eleven individuals have been charged in total by the US Department of Justice with running operations that violated the Unlawful Internet Gambling Enforcement Act of 2006.

Among those charged are executives from Isle-of-Man based Pokerstars, Ireland-based Full Tilt, and Costa-Rica based Absolute Poker.

The authorities have so-far arrested three individuals, all US citizens, and are working with international law enforcement agencies to arrest a further eight US citizens and foreign nationals in connection with the charges.

Feds seize Absolute Poker

Absolute Poker's domain name was seized by US law enforcement

The individuals face a range of charges with different prison sentences and fines, while the US is also seeking at least $3bn held by the companies.

The feds have seized five domain names issued by the poker companies to their online businesses in the US, and have issued orders freezing 76 accounts in 14 counties. At time of writing, the Absolute Poker domain was among the domains seized.

According to New York's US Attorney's Office, the companies operated in contravention of the 2006 act on unlawful gaming.

Authorities say those indicted disguised money from US gamblers as payments to hundreds of non-existent online merchants selling items like jewelry and golf balls.

The companies deceived banks into processing the money by creating fake corporations and web sites. When the banks detected and shut them down, they worked with the principals of smaller banks offering them investment in return for handling payments.

The indictment names one bank, SunFirst Bank in St George, Utah, whose vice chairman of the board and part owner John Campos allegedly agreed to process gambling transactions in return for a $10m investment in SunFirst, which would give them a more than 30 per cent ownership stake in the bank. Campos also requested and received a $20,000 "bonus" for his assistance, according to US law enforcement.

One of the associates of the individual who approached Campos said in an email they had "purchased" SunFirst and "were looking to purchase" "a grand total of 3 or 4 banks" to process payments.

You can read more here. ®

High performance access to file storage

More from The Register

next story
Parent gabfest Mumsnet hit by SSL bug: My heart bleeds, grins hacker
Natter-board tells middle-class Britain to purée its passwords
Obama allows NSA to exploit 0-days: report
If the spooks say they need it, they get it
Web data BLEEDOUT: Users to feel the pain as Heartbleed bug revealed
Vendors and ISPs have work to do updating firmware - if it's possible to fix this
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Call of Duty 'fragged using OpenSSL's Heartbleed exploit'
So it begins ... or maybe not, says one analyst
Snowden-inspired crypto-email service Lavaboom launches
German service pays tribute to Lavabit
German space centre endures cyber attack
Chinese code retrieved but NSA hack not ruled out
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.