DoJ accuses 34 of running $1bn 'illegal' sportsbook
Panama-based Legendz Sports faces allegations from US Department of Justice
The US Department of Justice has accused 34 people of running a $1 billion illegal gambling business through Panama-based online sportsbook Legendz Sports.
The indictment states Bartice Alan King conspired with others to run an online sportsbook that took bets exlusively from US citizens and used agents on the ground in the States to settle debts.”These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds,” acting assistant attorney general Mythili Raman, said.
If found guilty the accused face up to 20-years in prison for money laundering conspiracy, 10 years for money laundering and five years for operating an illegal gambling business. The federal indictment, which was unsealed on 10 April, also names 23 corporate entities based in Panama, the US, Costa Rica and Belize that are alleged to have operated as payment processors, own websites and domain names, launder gambling funds and make payouts.
“The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries,” US Attorney Sanford C Coats, said. The indictment is the latest in a series of investigations into the US-facing offshore sportsbook industry, with Jazz Sports and Pinnacle Sports two of four companies named in a separate indictment back in October 2012.
Pinnacle Sports co-owner Stanley Tomchin told eGR the allegations in the Pinnacle case were untrue and his lawyer said Tomchin was looking forward to clearing his name. Pinnacle Sports was placed under investigation by the regulatory authorities in Alderney last year, but the investigation was cancelled after Pinnacle handed back its secondary Alderney licence in January.