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Online casino investigation delivers two more malfeasants

Two years have passed since the start of the investigation into online casino giant Bodog. The IRS has seized $14.2 million from JBL Services and around $9.87 million from ZipPayments. Edward Courdy of ZipPayments and Michael Garone of JBL Services have now been charged with money laundering.
Apparently Courdy transferred $2.38 million from Dublin to Nevada and then on to Maryland for the purposes of conducting an illegal gambling business there. Garone transferred $1.5 million from Frankfurt, Germany to Georgia and then on to Maryland also for the purposes of conducting an illegal gambling business there.

Bodog has said that the seizures had not affected the online casino’s business. Players were paid out as per usual despite JBL Services being disrupted. According to IRS Special Agent Randal Carrow, online casinos are now using money processing businesses in the US to pay out players. They transfer large sums of money to the money processors and they in turn distribute the money to winners, usually such payments are not identified as gambling proceeds.

New federal legislation has made it more difficult for online casinos to move money in and out of the United States and this is one of the reasons they are now using money processing businesses in the United States.
The matter is not yet decided but ZIP Payments are attempting to get the seized money back through their California attorney, Stanley Greenberg. JBL Services has so far not contested the seizure of funds.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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