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WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case

08-18-2010 , 08:03 AM
Defendants Agree To Forfeit $13.3M In Online Gambling Case

Quote:
DOW JONES NEWSWIRES
Two payment processors and their owner have agreed to forfeit $13.3 million to resolve claims that the funds were involved in money laundering.

The funds are alleged to be traceable to the Pokerstars website based in the Isle of Man.

U.S. prosecutors contend some of the money in question was traceable to wire transfers from outside the U.S. "by individuals and entities who knew that the funds involved represented the proceeds of the illegal transmission of gambling information and the operation of an illegal gambling business.

Agreeing to forfeit the $13.3 million Tuesday in Manhattan federal court were Allied Wallet Inc. and Allied Systems Inc. and their owner Ahmad Khawaja.

...

House Financial Services Committee Chairman Barney Frank (D., Mass.) said earlier this year he was opening by year's end to overturning the law passed by Republicans in 2006 that made online gambling illegal.

-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com
Who wants to email the author to set him right?

Last edited by PokerXanadu; 08-18-2010 at 08:20 AM.
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-18-2010 , 08:17 AM
Here is one I sent to him:

Quote:
Dear Mr. Kingsbury,

Please fact check your article. While you state in your last sentence, "the law passed by Republicans in 2006 that made online gambling illegal", the truth is that the law (the UIGEA - Unlawful Internet Gambling Enforcement Act) did not make any online gambling illegal. This new law, which outlawed accepting money transfers for illegal Internet gambling, did not itself state which Internet gambling is illegal but rather relies upon any existing state or federal laws to make that determination.

You may find this useful in your research: The UIGEA and Federal Licensing Bills FAQ .

Aces Up,

-Martin

Martin Shapiro
Florida State Director
Poker Players Alliance: http://theppa.org
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-18-2010 , 09:08 AM
We all know most of these news outlets and writers can't be bothered with facts when there's a sensational story to write.
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-18-2010 , 10:23 AM
That's surprising from the WSJ, as they are known as a standard-bearer for responsible journalism.
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-18-2010 , 11:11 AM
Forbes did a much better job, especially paragraphs 6 and 7.

Feds Grab Online Poker Cash
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-18-2010 , 12:35 PM
Kudos to Forbes. Best write up I have seen in a long time.
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-18-2010 , 02:28 PM
Yeah, just a super good article and the comment from Stars was the first public statement I had heard on the new processor disclosures
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-19-2010 , 03:42 PM
Here is the press releases from the DOJ Southern District of New York

http://www.justice.gov/usao/nys/pres...ttlementpr.pdf
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-19-2010 , 05:24 PM
Quote:
Originally Posted by novahunterpa
Here is the press releases from the DOJ Southern District of New York

http://www.justice.gov/usao/nys/pres...ttlementpr.pdf
It is very interesting to see that the DOJ's press release makes a distinction between the proceeds of "illegal gambling" and the "online gambling" funds of PokerStars players.


Quote:
Between January 2009 and May 2009, more than
$13,335,248.91 in funds traceable to Pokerstars, an online
gambling company based in the Isle of Man, and other offshore
online gambling companies were deposited in a bank account at
Goldwater Bank held by ALLIED WALLET, INC. These funds were
traceable to several sources. Some of the funds were traceable
to wire transfers from outside the United States by individuals
and entities who knew that (a) the funds involved represented the
proceeds of the illegal transmission of gambling information and
the operation of an illegal gambling business, (b) the transfers
were made in order to promote the carrying on of an illegal
gambling business, and (c) the transfers were designed in part to
conceal or disguise the nature, location, source, ownership and
control of the proceeds of the illegal transmission of gambling
information and operation of an illegal gambling business. Other
funds
were debited from the bank accounts of online gamblers who
were using the Pokerstars.com website, and other websites, to
engage in online gambling.
Note the absence of the word "illegal" in the last sentence.

Last edited by PokerXanadu; 08-19-2010 at 05:32 PM.
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-24-2010 , 12:49 AM
Quote:
Originally Posted by PokerXanadu
It is very interesting to see that the DOJ's press release makes a distinction between the proceeds of "illegal gambling" and the "online gambling" funds of PokerStars players.




Note the absence of the word "illegal" in the last sentence.
Interesting. It is as if the paragraph was written by a lawyer who was using precise language to not overstate his position as opposed to an idiot reporter who can't be bothered to research anything.

thanks for pointing that out PX.
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote
08-24-2010 , 11:10 PM
Wow, good catch.
Unfortunately the writer still refers to poker as 'online gambling' in the last sentence.
WSJ:  Defendants Agree To Forfeit .3M In Online Gambling Case Quote

      
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