From Deseret News archives:
7 charged in Web gambling ring
Richard Carson-Selman, Henry Bankey, Tina Hill, Lombardo brothers Baron, Count and Francisco, and Francisco's wife Kimberlie were charged with 34 felony counts of racketeering, bank fraud, wire fraud and money laundering, which carry sentences up to 20-30 years in prison.
Prosecutors say members of the group were involved in a seven-year-long international money laundering service, which would distribute moneys from sports Internet gambling Web sites to a series of international bank accounts and computer servers. The funds would then be forwarded to Utah-based companies.
From 2000 to 2007 court documents state the group processed more than $150 million in proceeds from the gambling Web sites.
Some 40 boxes of evidence and multiple computer hard drives were confiscated by authorities and are believed to contain extensive evidence.
CurrenC LTD, Gateway technologies, Hill Financial services and Betus are a few of a number of companies prosecutors say were created by the group and then were used to create and operate the credit card and wire transfer operations.
According to court documents, gambling patrons could place bets on sporting events and gambling games using Web sites such as Betonsports PLC and Betus.
The information from these sites was sent to servers located outside of the United States — the United Kingdom, Jamaica and Korea — among other countries. Servers would forward the transactions to Draper- based companies Gateway technologies and Hill Financial services and then pass those transactions on to the Internet gambling site owners.
Authorities said the case was uncovered when the IRS noticed several strange transactions from the companies and outside information was revealed.
No members of the group were detained, but Judge Paul Warner had them surrender their passports and restricted them from movement outside of Utah and Nevada unless pretrial services receives and approves prior notification.
Richard Carson-Selman was exempted from surrendering his passport on the condition he notify pretrial services before traveling outside the country as an independent contractor for Edelweiss, a credit card manufacturing company in Europe.
As part of the federal prosecution, the group was served notice under the Rackeeter Influenced and Corrupt Organizations (RICO) statute that in the event any defendant is convicted, the government will seek seizure of multiple assets. In addition to the millions in multiple off-shore accounts, prosecutors identified several properties in Las Vegas and high-end cars they believe were purchased with ill-gotten funds. The laundry list includes a 2004 Maserati Spyder, a Lincoln Town Car and a Mercedes Benz.
A status conference for the defendants is set for Aug. 6 before U.S. District Judge Paul Cassell.
E-mail: nhale@desnews.com
