In an exclusive report the Gambling911 portal reveals that a major
New York enforcement action by staff of the Queens District Attorney
has netted 32 agents working with offshore sportsbooks.
One of those prosecuted had $300 000 confiscated in what was apparently
a sting operation, details of which are expected to be released soon.
911 reports that law enforcement authorities obtained search warrants
against the online gambling website concerned, which has not yet been
identified, and were able to monitor agent activity including all
bets placed and won via computer expert "code breaking".
Wire taps were placed on most of the agents, tracing their movements
between New York and Las Vegas. The group itself was based out of
Hunts Point, The Bronx.
Servers for the offshore sportsbook's website were based out of Florida
and Atlanta.
Law enforcement have confirmed that the bust of another offshore betting
operation which dealt in credit led to the arrests of BetonSports
CEO David Carruthers back in July 911 says. His company allegedly
housed the defendants.
The raid was confirmed today by Queens District Attorney spokesman
Kevin Ryan. Without specifically identifying the corporation concerned,
Queens District Attorney spokesman Kevin Ryan said one of the corporations
is an offshore Internet company with an American counterpart.
Ryan said the case is "...one of the first times that a
Web designer corporation and the companies that maintain the Web sites
have been charged."
He said the arrests by the DA's office and the New York Police Department
represent the first time that Internet gambling charges have been
brought since President Bush signed into law last month the Unlawful
Internet Gambling Enforcement Act.
More details became available in a press conference in the city held by Queens DA Richard Brown and Police chief Raymond Kelly.
Associated Press issued an update which revealed that prosecutors
brought charges against 27 people in connection with a billion-dollar-a-year
Internet sports gambling ring, including men identified by authorities
as a professional baseball scout and a high-stakes poker player.
The charges were brought in connection with a site called Playwithal.com,
run by the poker player, James Giordano, 52, of Pine Crest, Fla.,
police said.
Also charged was Frank Falzarano, 52, of Seaford, N.Y., identified
by prosecutors as a scout for the Washington Nationals and a former
scout for the San Francisco Giants. His alleged role in the operation
was not immediately clear.
Search warrants executed in several locations resulted in the seizure
of gambling records, computers and hundreds of millions of dollars
in property.
The property includes four Manhattan condominiums, millions of dollars
in cash, tens of thousands of dollars worth of casino chips from the
Bellagio casino in Las Vegas, art, jewelry, gold coins, and a football
signed by the 1969 New York Jets following their Super Bowl victory.