Prosecution for Money Laundering linked to online Gambling

Money laundering Online GamblingOne of the 11 people accused of involvement in money laundering and fraud linked to poker’s “Black Friday” in April 20011 has recently pleaded guilty to the charges against him. Ira Rubin, an American citizen living in Costa Rica was charged with money laundering and bank fraud when he acted as a payment processor for the online gambling industry. He was arrested as part of the FBI investigation into the three major poker groups operating in the United States in 2011.
Black Friday which had a huge impact on online poker in the United States and elsewhere involved poker giants Poker Stars, based in the Isle of Man, Absolute Poker based in Costa Rica and the Irish based Full Tilt Poker. The three online poker sites were closed down by the FBI and international warrants were issued for the arrest of 11 people including Ira Rubin. They were accused of violating the 2006 Unlawful Internet Gambling Enforcement Act by engaging in unlawful gambling, money laundering and fraud. Web sites and fraudulent bank accounts were set up by Ira Rubin and others to launder money from the poker sites.Under the Unlawful Internet Gambling Enforcement Act it is also illegal for banks to knowingly take payments which are the proceeds of internet gambling and so several smaller banks were closed down for breaching the law including the Utah based Sun First Bank. When some banks closed the fraudulent bank accounts Rubin and others got around this by setting up websites to process the money which they claimed was used for clothing, jewellery and sports equipment among other items.

Ira Rubin is due to be sentenced in May 2012 and could face up to 55 years in prison. Of the 11 individuals for whom international arrest warrants were issued six have not been arrested yet and of the four who were charged with Ira Rubin , two have pleaded guilty and two are to go to court in the spring of 2012. Money laundering is a major crime and with new laws and regulations countries worldwide are cracking down on laundering and bank fraud linked to online gambling.

Leave a Reply

Your email address will not be published. Required fields are marked *