People round-up 01/03/12
A round up of industry moves from the last week (24 February to 1 March 2012).
Breaking: Calvin Ayre indicted
Baltimore authorities open indictment against Bodog founder.
Federal prosecutors in Baltimore have indicted Bodog founder Calvin Ayre and three other individuals connected to the company just hours after the US authorities seized the company’s dot.com domain.
A federal grand jury has indicted parent company Bodog Entertainment Group S.A., and four individuals, for conducting an illegal sports betting business and conspiracy to commit money laundering. The indictment was announced by US Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge William Winter of US Immigration and Customs Enforcement and Homeland Security Investigations; and Acting Special Agent in Charge Eric C. Hyton of the Internal Revenue Service “ Criminal Investigation.
The individuals named in the indictment are Ayre; business partner James Philip; David Ferguson and Derrick Maloney, with Rosenstein commenting: “Sports betting is illegal in Maryland, and federal law prohibits bookmakers from flouting that law simply because they are located outside the country. Many of the harms that underlie gambling prohibitions are exacerbated when the enterprises operate over the internet without regulation,”
The indictment alleges that the defendants conducted an illegal gambling business from at least 9 June 2005 to 6 January 2012, moving funds from Bodog accounts based in Switzerland, England, Malta, Canada and elsewhere to pay players, media brokers and advertisers in the States. Prosecutors suggest that at least US$100m was sent by wire and cheque to gamblers located in Maryland and elsewhere.
Ayre profile: US authorities close in on prize catch
On 27 March 2006 US magazine Forbes put Bodog’s founder and online gambling “billionaire” Calvin Ayre on the front cover of its ‘Richest people in the world’ issue with the headline ‘Catch me if you can’.
But almost five years ago to the day it seems that the law has finally caught up with a man who regularly taunted US authorities and boasted about his exploits.
Just hours after eGaming Review learned Ayre’s former domain Bodog.com had been seized, Federal prosecutors in Baltimore unsealed a two-count indictment against the flamboyant Canadian and three other men connected to the business for conducting an alleged illegal internet gambling business generating more than US$100m.
Elie and Campos request presentation to jury
Chad Elie and John Campos, two of the alleged payment processors due to stand trial following the Black Friday indictments, have requested the opportunity to present their case before a jury.
A motion in limine, filed last week, reiterates the duo’s arguments regarding the Unlawful Internet Gambling Enforcement Act (UIGEA) and the Illegal Gambling Business Act (IGBA).
Elie and Campos introduced the motion with the explanation that they “[S]eek to introduce evidence that peer-to-peer poker is predominantly a game of skill to challenge the government’s allegations that the charged conduct constitutes “unlawful internet gambling” and “a game subject to chance” under [UIGEA].”
Fourth Black Friday indictee pleads guilty
Canadian Ryan Lang yesterday pleaded guilty to conspiracy to commit tax fraud and violation of the Unlawful Internet Gambling Enforcement Act (UIGEA) by accepting funds in connection with online gambling, and conspiracy to commit money laundering.
Lang joins fellow payment processors Bradley Franzen, Ira Rubin, and former head of payments for Absolute Poker Brent Beckley to have so far pleaded guilty, while alleged payment processors Chad Ellie and John Campos this week requested to have their cases presented before a jury and are expected to stand trial in April in the Southern District of New York.