Canadian Man Indicted For Gambling Payment Processing

Gambling News - August 6th, 2009 - Written by Glen

Last month the office of the U.S. Attorney for the Southern District of New York ordered the seizure of over $30 million dollars of online poker winnings. These winnings were set to be disbursed to players on American soil. The reasons cited were money laundering transactions and illegal gambling offenses. Now, in August, a 34 year old resident of Canada has been indicted under similar charges.

Douglas Rennick, a 34 year old business man, had been charged with bank fraud and "other offenses stemming from his role in processing more than $350 million for Internet gambling companies."

Rennick has allegedly been operating since 2007, if not earlier. It is stated, though as of yet unproven, that he held multiple bank accounts in the United States. Different corporate names had been used in the purpetration of these activities. Amongst these names were KJB Financial Corporation, Account Services Corporation, and Check Payment Financial Co.  His businesses were reported to process payments as third party. These payments would include refunding checks, granting rebates, sponsorship and affiliate checks, and even payroll processing. The FBI has determined that the reasons provided were an attempt at misinformation.

It is alleged that the payments being processed through these companies were related to online gambling, or some how connected there in. These gambling companies were involved in more than just poker. Blackjack and other table type casino games were being offered at many of the Internet gambling sites that payments had been processed for. The finances had come from Cyprus, hundreds of millions of dollars worth of transactions had been piped through.

Amongst his charges, Rennick will face one count of conspiracy to commit bank fraud, one count of conspiracy to engage in money laundering, and conspiracy to operate an illegal gambling business. He could face no more than 30, 20, and 5 years for each crime, respectively. He could also be fined no more than $1,750,000 dollars if he is found guilty. All of the proceeds from his services are also set to be seized, which is a hefty sum of $565,908,288 dollars.

In the United States, the Unlawful Internet Gambling Enforcement act makes financial institutions liable for the processing of financial transactions connected to Internet gambling. Many interest groups are constantly lobbying Capitol Hill to change this law, progress has yet to be made.

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