FBI Complaints - Real Casino and Sportsbook

11 March 1998

Isn't chaos fun? While everyone and their brothers try to sort out this Caribbean sportsbook fiasco, IGN has a few nuts and bolts for you to chew on. Following is a copy of all the complaints filed by the US Government. So, without further ado, lets have a look at these buggers as well as the full release from the Dept. of Justice.



Approved: THOMAS C RUBIN and DANIEL C. BECKER
 Assistant United states Attorneys

Before: HONORABLE NA0MI REICE BUCHWALD 
 United States Magistrate Judge 
 Southern District of New York

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 UNITED STATES OF AMERICA  SEALED COMPLAINT  

 -V-  violation of
   18 U.S.C.  371
 BRAD COHEN and
 JASON PERRY,

 Defendants.  
   COUNTIES OF OFFENSE:
   NEWYORK AND      ELSEWHERE
  
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SOUTHERN DISTRICT OF NEW YORK, SO.:

LISA J. FERENCE, being duly sworn, deposes and says that she is a Special Agent With the Federal Bureau of Investigation and charges as follows:

COUNT ONE

1. From in or about 1997, until on or about today’s date, in the Southern District of Now York and elsewhere, BRAD COHEN and JASON PERRY, the defendants, and others known and unknown, unlawfully, willfully, and knowingly did combine, conspire, confederate and agree together and with each other to commit an offense against the United States to wit, to violate Title 18,  United States Code, Section 1084.

2. It was a part and object of the conspiracy that BRAD COHEN and JASON PERRY, the defendants, and others known and unknown, being engaged in the business of betting and wagering, unlawfully, willfully and knowingly, would and did use a wire communication facility for the transmission in interstate and foreign commerce of bets and wagers and information assisting in the placing of bets and wagers on sporting events and contents, and for the transmission of a wire communication which entitled the recipient to receive money and credit as a result of bets and wagers, and for information assisting in the placing of bets and wagers, in violation of Title 18, United States Code, Section 1084,
 

OVERT ACTS

  3. In furtherance of said conspiracy and to effect the object thereof, BRAD COHEN and JASON PERRY, the defendants, and others known and unknown, committed the following overt acts in the southern District of Now York and elsewhere:

a.     On or about November 7, 1997, JASON PERRY, the defendant, sent an e-mail. to an undercover agent in New York, New York.

b.     On or about December 12, 1997, an undercover agent in Now York,                  New York, had a telephone conversation with BRAD COHEN, the defendant, who was located in Colorado.

c.     On or about December 15, 1997, BRAD COHEN, the defendant, sent an e-mail to an undercover agent located in New York, New York.

(Title 18, United States Code, section 371.)

The bases for my knowledge and the foregoing charge are in part, as follows:

4. I have been an FBI agent for two years.  For the past 15 months, I have been a member of the FBI's Computer Crimes squad and am familiar with computers and the Internet.

5. I am familiar with the facts and circumstances set forth below from my participation in the investigation and from my conversations with other law enforcement agents and witnesses.  Because this Complaint is being submitted for a limited purpose, I have not included details of every aspect of this investigation. where conversations or statements are related herein, they are related in substance and in part.

6. During the course of this investigation, I received information from various sources that Real Casino was operating a sports betting business over the Internet.  As a result of this information the FBI began an investigation to determine, among other things, whether Real Casino was using the Internet or other forms of wire communication facilities in interstate and foreign commerce to conduct a sports betting business, and, if so, who was responsible for that conduct.

7. Based an my experience on the FBI’s Computer Crimes squad as well as various publications I have read, I know that the Internet in an immense worldwide computer network used by millions of individuals daily.  The Internet is comprised of many smaller computer networks that are connected to each other via telephone and other data lines.  The World Wide Web ("WWW") in a hypertext-based system that facilitates the ability to find and access information on the Internet.  Many businesses, including Real casino, use the WWW to advertise, promote, and provide information about their services.  Typically, communications over the Internet -- including the references in this Complaint to accessing WWW pages -- take place over ordinary telephone lines through the use of a modem.  Those communications travel over ordinary telephone lines between the points of origin (such as a computer server that is used to store and transmit www pages) and the points of reception (such as the personal computer of an individual who accesses a particular site on the WWW).

8.         Using an undercover Internet account that can be accessed at the FBI offices in Now York, Now York, I accessed the web site for Real casino, at www.realcamino.com. The Real Casino web site revealed the following:

a. Real Casino is a sports wagering service that accepts bets on various sporting events, including football, hockey, baseball and basketball.  Bets could be placed via the Internet web site or over the telephone.

   b.           In order to bet with Real Casino a bettor is required to open an account (which could be done over the Internet), and send a minimum deposit of $100.  The deposit could be sent via Western Union, cashier's check, money order or by bank wire transfer (to the Bank of Nova Scotia, New York Agency, New York, Neow York, for credit to Scotianbank de Costa Rica S.A., for further credit to Informacion Real, S.A.).

9. On or about October 14, 1997, an undercover FBI special agent posing as a potential bettor (the “UC”)  -Li called Oil506-256-7300, the telephone number of Real Casino in Costa Rica.  A man who identified himself as "Ronny" answered the telephone by, statinq that the UC had reached the Casino Real and Sportabook.  "Ronny" proceeded to give the UC various information designed to assist the UC to place a bet with Real Casino.  "Ronny" told the UC that Real Casino's 'United States contact was BRAD COHEN, the defendant, who could be reached in Colorado at (970) 476-0006t and that the president of the company was JASON PERRY, the defendant.  '$Ronny" added that COHEN would provide the UC with odds and whatever information the UC needed to place bets.  "Ronny" stated that Real- Casino required a deposit of $100, and that there is a minimum hot of $10 if the bet is placed over the Internet and a minimum bet of $50 for telephone wagers.  "Ronny" added that Real casino would accept payment via Western Union or a bank wire, and stated that a bank wire should be sent to Chase Manhattan Bank in Now York, Now York,.for credit to the Continental Bank of Panama, for further credit to Real Casino.

             10.  On or about October 16, 1997, the UC, while in New York, New York, opened a betting account with Real Casino by accessing Real Casino's Internet site and by filling out a form located an that site.
  
 
  11.      On or about October 17, 1997, the UC sent $500 by Western Union to meat the minimum deposit requirement of Real Casino.  The Western Union transfer was made out to "Informacion Real."

12.  On or about October 18, 1997, the UC received an email from JASON PERRY, the defendant, who identified himself as "Sports Book Director" of Real Casino, confirming that the $500 Western Union transfer had arrived.  The a-mail offered a toll-free telephone number, (800) 659-8007, for placing bets.

13. On or about October 24, 1997, the UC accessed Real Casino's web site from a computer located in Now York, Now York, reviewed point spreads listed on the site, and placed two bets by clicking various items on the site.  The UC bet on two National Football League ("NFL") games scheduled to be played on October 26, 1997.  The UC bet $55 that the Minnesota Vikings would not lose to the Tampa Bay Buccaneers by more than 3 points, and $55 that the total points scored in the Buffalo Bills vs.  Denver Broncos game would be more than 42.5. The UC won both bets, and $100 in winnings was credited to the UC's account with Real casino. 

  14. On or about October 31, 1997, the UC accessed Real Casino's web site from a computer located in Now York, New York reviewed point spreads found on the site and placed two bets by clicking various items on the site.  The UC bet on one National Basketball Association ("NBA") game scheduled to be played on that same day and on one NFL game scheduled to be played on November 2, 1997.   The UC bet $55 that the Philadelphia 76ers would not lose to the Milwaukee Bucks by more than 1 point, and $55 that the Philadelphia Eagles would beat the Arizona Cardinals by more than 4 points.   The UC lost both games.

  15.  On or about November 7, 1997, the UC accessed Real Casino's web site from a computer located in New York, Now York, reviewed point spreads found an the site, and placed two bets by clicking various items on the site.  The UC bet on one NEA game scheduled to be played that day and on one NFL game scheduled to be played on November 9, 1997.  The UC bet $55 that the Los Angeles Lakers would beat the Now York Knicks by more than 4.5 points, and $55 that the Denver Broncos would beat the Carolina Panthers by more than 7 points.  The UC won both bets, and $'100 in winnings was credited to the UC's account with Real Casino.

16. on or about November 7, 1997 the UC received an e-mail from JASON PERRY, the defendant, which listed his e-mail address as "jazonpgraalcasino.com. " The e-mail, which was signed "JP, " provided information on getting Real Casino to refund the western union transfer fee that the UC had paid.

17. On or about November 14, 19970 the UC accessed Real Casino's web site from a computer located in New York, New York, reviewed point spreads found on the site, and placed two bets by clicking various items on the site, The UC bet on two NFL games scheduled to be played on November 16, 1997.  The UC bet $55 that the Seattle Seahawks would beat the New Orleans saints by more than six points, and $55 that the Pittsburgh Steelers would beat the Cincinnati Bengals by more than 9 points.  The UC lost the first bet and won the second bet, and $50 in winnings was credited to the UC’s account with Real Casino.

18. on or about November 21, 1997, the UC called telephone number 011-506-256-7300 from the FBI offices in New York-, Now York, and placed two beta over the telephone.  The UC bet an two NFL games scheduled to be played on November 23, 1997.  The UC bet $55 that the Tampa Say Buccaneers would beat the Chicago Bears by more than 6 points, and $55 that the Minnesota Vikings would not lose to the Now York Jets by more than I point.  The UC lost both bets.

19. I have reviewed telephone records, which reveal that telephone number (970) 476-0006, which the UC was given to contact 13RAD COHZN, the defendant in Colorado, in a telephone number in Vail, Colorado that is subscribed to by Pangaea Systems LLC, 500 East Lionshead Circle 31, Vail, Colorado 81657.  The billing information for that telephone number lists both of the defendants, BRAD COHEN and JASON PERRY.

20. 1 have reviewed other telephone records, which reveal that telephone number (800) 659-8007 is a toll-free number provided,' by Frontier Communications Services Inc.  The subscriber for this toll-free number is Informacion Real, S.A., with an address of 500 E Lionshead Vail, Colorado 81657.  The subscriber name on the account in BRAD COHEN, the defendant, with the telephone number (970) 476-0006.  A further review of the telephone records of (800) 659-8007 reveals that this number was called hundreds of times from locations all over the United States, including numerous calls from Manhattan and from the Bronx. believe it in likely that many, if not all, of these calls, like those from the UC,, were from bettors (i) receiving information about sports betting with Real Casino or (ii) placing sports bets with Real Casino.
 

   21.  1 have reviewed several newspaper articles in which BRADM COHEN and JASON PERRY,  the defendants, are quoted in connection-with their business, Informacion Real.

22.  On or about December 12, 1997, the UC placed a call from New York, New York to (970) 476-0006, and asked for BRAD COHEN, the defendant.  COHEN answered the telephone "Real," and the UC proceeded to have a consensually-recorded conversation with him, during which the following occurred:

a. The UC identified himself as a customer of Real casino and asked about getting money back from his account.

b. COHEN identified himself as one of the managers of "Real." COHEN identified JASON PERRY, the defendant, as, variously, "the overall manager," "one of the principals," and "the main person." COHEN said that the company in all employee-owned, and that COHEN himself owns a part of the company.

c . COHEN said that PERRY manages the whole betting operation and is presently in Costa Rica.  COHEN said that JASON PERRY's e-mail address is "Jasonp@realcasino.com."

d. COHEN staid that the company performs marketing from the United States.  The office in Colorado is an office that handles marketing and software work for the company.

 e.    COHEN stated that the company has customers in the United States and elsewhere.

 f.   COHEN told the UC that he would send an a-mail detailing how the UC could geot his money back from his account.

23.  On or about December 15, 1997, the UC received an e-mail from "bbrad@realcasino.com," which further identified the sender as "Brad C." The e-mail provided "information on withdrawing funds" and was signed  "Brad."

24.  Later that day, I accessed Real Canino’s web site at www.realcalaino.com and requested a bank wire transfer of the balance of my account with Real Casino.  On December 17, 1997, the UC received a wire transfer of $487 in an undercover bank account. The wire transfer was received from the Chase Manhattan Bank in New York, Now York, and the originating bank of the wire transfer was Banco Continental in Panama.

25, 1 have reviewed records from the United States Customs Service, which reveal that an individual named "Brad Cohen" traveled from Costa Rica to the United States in 1997.
  
 WHEREFORE, deponent prays that warrants arrests of BRAD COHEN and JASON PERRY, and that they be imprisoned or bailed as the case may be.
 
 
 
 
 

      LISA J. FEFENCE
Special Agent
 Federal Bureau of Investigation

sworn to before me this
day of March, 1998
 

 UNITED STATES MAGISTRATE JUDGE
SOUTHERN DISTRICT  OF NEW YORK