March 26 was D-Day for the next rash of criminal complaints against online
gaming operators. Another 7 individuals were targeted and IGN is offering
you the complaints against those folks as well as the full text of the US
Attorney's news release on the matter.
United States Attorney
Southern District of New York
FOR IMMEDIATE RELEA5E
March 26, 1998
CONTACT:
U.S. ATTORNEY’S OFFICE
MARVIN SMILON, HERBERT HADAD (212) 791—1937
THOMAS C. RUBIN (212) 792-1976
DANIEL C. BECKER (212) 791—1321
JOSEPH V. De MARCO (212) 791—1978
FBI
JOSEPH VALIQUETTE
(212) 384—2715
PRESS RELEASE
MARY JO WHITE, the United States Attorney for the Southern District of
New York, and LEWIS D. SCHILIRO, Assistant Director in Charge of the New
York Office of the FBI, announced today that seven additional owners,
managers and employees of five Internet sports betting companies
headquartered in the Caribbean have been charged in Manhattan federal
court with conspiracy to transmit bets and wagers on sporting events via
the Internet and telephones. These cases are in addition to charges
filed against 14 owners and managers of six such companies earlier this
month, which were the first federal prosecutions of sports betting over
the Internet.
The five separate Complaints charge the defendants, all of whom are
United States citizens, with owning and/or operating sports betting
businesses that illegally accept wagers on sporting events over the
Internet and telephones. All of the companies advertise and promote
their sports betting operations to United States customers on web sites
on the Internet, according to the Complaints.
According to Complaints, Worlds Sports Exchange and Galaxy Sports have
continued to operate sports betting operations in violation of United
States law following the arrests of owners and managers of those
companies earlier this month. When an undercover agent posing as a
better called World Sports Exchange, he spoke to a man identified as
SPENCER HANSON, who refused to give his last name, and told the agent
that he sounded like a "federal agent," it was charged.
In addition, owners or employees of three other sports betting
operations, Global Sports Network (Dominican Republic), Grand Holiday
Casino (Curacao) and World Wide Tele-sports (Antigua) have been
charged. LAURENCE R. STOFAN, the owner of Global Sports Network,
operated his business out of Cliffside Park, New Jersey.
Ms. WHITE stated: "Offshore sports betting operators who use the
telephones, Internet, or other forms of wire communications to solicit
bettors from the United States are acting in violation of federal law.
We will continue to monitor and vigorously prosecute offshore sports
betting operations that engage in this blatantly illegal activity."
Out of the 14 defendants named in the arrest warrants unsealed on March
4, 1994, 11 have been arrested or surrendered. The remaining three,
Steve Shillinger, Gene O’Brien and Brian Janus, remain fugitives.
All the defendants are being notified that warrants have been issued for
their arrests, and they will be placed in custody upon their return to
the United States.
Each of the defendants faces a maximum sentence of five years in prison
and a fine of up to $250,000.
Assistant United States Attorneys THOMAS C. RUBIN, DANIEL C. BECKER and
JOSEPH V. De MARCO are in charge of the prosecution.
Ms. WHITE praised the efforts of the FBI, including its Computer Crimes
Squad, for its investigation of this case. The investigation is
continuing.
The charges contained in the Complaints are accusations, and the
defendants are presumed innocent unless and until proven guilty.