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Online Gambling Processors Busted

Law, 2007-05-12, by TwoGun

Seven people and four companies have been indicted by The U.S. attorney for the state of Utah for their involvement in processing online gambling transactions. Defendants are being charged with conspiracy, bank fraud, money laundering, and violations of the Wire Act. The companies in question were based in Draper, Utah as well as outside the U.S., though the defendants working for the companies live in Las Vegas.

The defendants are being accused of miscoding credit card transactions so that Americans would be able to deposit at online gambling sites. All American credit card issuing banks block online gambling transactions. However, when a payment processor intentionally miscodes a transaction, the deposit will often go through since it won't be labeled as an online gambling transaction.

Defendants are also accused of processing wire transfers for online gambling companies, as well as enabling Western Union transfers via the Philippines.

Defendants are accused of doing business with BetUS, BetonSports, and four other unnamed online gambling companies. It's not clear if the defendants have ties to any of the major online poker rooms.

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