Man pleads guilty re gambling payments
Canadian man pleaded guilty in a Manhattan court in connection
to processing payments from online gambling websites to players
in the United States. Douglas Rennick, inducted last August,
pleaded guilty in a federal court in New York to a single count
of transmission of wagering information. The guilty plea could
net the former online gambling payment processor a negotiated
sentence of up to 12 months, following his cooperation with
authorities. In addition to jail term, Rennick has agreed to
forfeit $17.1 million.
"I had a business that transferred
money from offshore gaming sites to American players within the
Southern District of New York," Rennick told the judge, when
asked about the nature of his business. He was charged with
conspiracy to commit bank fraud, conspiracy to engage in money
laundering and conspiracy to operate an illegal gambling
business. In addition Rennick was accused of providing false
information to U.S. banks. According to prosecutors, Rennick had
set up a few companies to process payments from gambling
websites to customers of those online gambling companies from a
bank account in Cyprus. He had told the U.S. banks that his
business was to process rebate checks, refund checks and payroll
checks. According to some reports, Rennick was processing the
online gambling payments for Poker Stars and Full Tilt Poker
between 2007 and 2009.
Meanwhile another man accused of
illegally processing online gambling transactions, Australian
Daniel Tzvetkoff, remains held without bail in New York.
Tzvetkoff stands accused of processing transactions
between players and online gambling companies worth more than
$500 million through the ACH system. Tzvetkoff has pleaded not
guilty to the online gambling charge.