US Online Gambling Crackdown - First Plea In

April 23, 2011 | News Category: Gaming Law

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In the past few years, there have been some key senior online gambling executives and some of the bigger online gambling companies that have been investigated by the Department of Justice. Many of these investigations have ended in a deal struck between the two parties, often resulting in a fine or payment being levied on the online gambling company or the online gambling executives. Not only this, but the pressure from the Department of Justice has caused a number of online gambling companies to pull out of the United States.

Currently in the news is the crackdown on online poker that has taken place in the United States. So far, there have been three arrests, and at this time there may be little that can be done to help the online poker sites that have been both shut down, and seized. The seizure includes the .com domain names that the sites were using.

The three arrests that were made were of Bradley Franzen, an online poker payment processor, Chad Elie, an online casino payment processor, and John Campos, the vice chair of the SunFirst Bank in Utah. The US attorney's office said that there are still eight people that they would like to arrest, however, these individuals area currently outside the United States.

Preet Bharara, a US Attorney, noted in a statement: "These defendants concocted an elaborate criminal fraud scheme, alternately tricking some U.S. banks and effectively bribing others to assure the continued flow of billions in illegal online gambling profits."

Bradley Franzen has entered his plea already. His words to the US Magistrate Judge Frank Maas were simply "Not guilty, your honor."

Franzen is from both Illinois and Costa Rica. He is accused of nine charges against him, one of which is that he has been part of a conspiracy to violate the UIGEA (Unlawful Internet Gambling Enforcement Act). He is also accused of conspiring to commit wire and bank fraud, operating an illegal online gambling business. He has also been accused of money laundering.

Franzen is currently out on a $200,000 bond. His parents have said that he will not flee, and they have put up their house as surety. Should Franzen be convicted of the conspiracy to all these crimes, he could face a jail sentence of up to thirty years.

While there have been many moves towards legalizing online gambling on a state level, the Department of Justice has been tightening the web for those who continue to operate online gambling sites in the United States.