NEW YORK–A pair of Canadians accused of laundering billions of dollars in illegal online gambling proceeds originating in the United States are expected to face a preliminary hearing in New York next month –the first step in determining whether to proceed with formal charges.
John Lefebvre and Stephen Lawrence, both co-founders and ex-directors of Isle of Man-based NETeller Plc, have each been released on $5-million US bond following their arrests last week –Lefebvre in Los Angeles and Lawrence in Virgin Islands.
If convicted, each faces a maximum sentence of 20 years in prison.
Lefebvre, 55, will have his bail terms reviewed when he appears in Manhattan Federal Court Wednesday. Lawrence, 46, who appeared in the same court Friday, saw his bail terms upheld. A judge gave him until Friday to come up with $1 million US still outstanding after he posted $2.5 million in cash and $1.5 million against a New York condominium.
While a federal judge in Los Angeles ordered Lefebvre not to leave that city except for making his Manhattan court appearance, Lawrence has been ordered not to leave New York before the end of February. Even then, he must not leave the continental United States, and must provide the court with contact information for each night he is away from New York.
Both men are accused of conspiring to promote illegal gambling by transferring billions of dollars of cyberspace bets placed by U.S. citizens with overseas gambling companies. Lefebvre, a University of Calgary law graduate and well-known philanthropist in the city, was arrested at his Malibu, Calif., beach house, but also owns a home on Saltspring Island in British Columbia.
Fellow former Calgarian Lawrence’s ties to the city date to the 1990s, when he worked as a principal with Cavendish Investing Ltd., a Calgary-based private venture capital firm.
NETeller allows users to transfer money to global companies for a fee.
The men are former directors of the company and knowingly broke the law, according to an FBI special agent based in New York.
“Public filings acknowledge that a large chunk of their business was derived from handling wagers from American customers,” James Margolin said last week.
“Under U.S. law, gambling is a very tightly regulated industry and the solicitation of American bettors by offshore companies is illegal.”
According to the company’s 2005 annual report, payment services were provided to more than 95 per cent of gaming merchants around the globe, amounting to roughly $7.3 billion in financial transactions.
In the first half of 2006, the company reported processing $5.1 billion in transactions.
“There is ample indication these defendants knew the American market for their services was illegal,” Michael Garcia, U.S. attorney for New York, wrote in the indictment.
“The U.S. is exerting its long arm in an effort to totally stamp out online gaming in their country, and in this case are pushing as hard as they can” Michael Lipton, a Toronto lawyer who specializes in gambling law, told CanWest News Service.
Source Vancouver Sun
Category Archives: Uncategorized
Gambling Shares Plummet Again as DOJ Goes After Euro Banks
LONDON — Shares in European online gambling companies fell as much as 14 per cent yesterday on news that U.S. prosecutors had launched a probe into Internet gambling.
The U.S. Department of Justice has sent subpoenas to about 15 investment banks across Europe and in the United States, requesting information as part of a probe into gambling companies including Britain’s PartyGaming PLC and payment networks such as Neteller PLC, banking officials said.
The banking officials, who spoke on condition that they not be identified by name because they were not authorized to do so, said that the subpoenas were received shortly after Christmas.
Dresdner Kleinwort, Deutsche Bank, HSBC Holdings and JPMorgan Chase & Co. declined to comment on reports they were among the banks to receive subpoenas. Citigroup Inc. and Bank of America Corp. officials did not immediately return calls for comment yesterday.
The United States effectively banned online gambling last fall when Congress added a provision to a bill aimed at improving port security to make it illegal for banks and credit card companies to settle payments to online gambling sites. U.S. President George W. Bush signed the bill into law Oct. 14.
Several Europe-based online gambling companies collapsed after the decision and those still operating continue to reel from the costs of exiting the United States.
Sportingbet PLC and Leisure & Gaming PLC both sold their U.S. operations for a token $1 (U.S.). World Gaming PLC directors resigned, leaving the company in the hands of administrators.
PartyGaming PLC, the world’s largest online gambling company, and Betonsports PLC were among the others to suspend all real money gambling activities to customers in the United States.
British-based Neteller, which essentially acts as a middleman between gamblers and offshore betting operations, said last week that it stopped handling gambling transactions from U.S. customers.
The company’s move came three days after former directors were arrested and charged in the United States with funnelling billions of dollars in gambling proceeds to overseas betting operations.
Gambling stocks, already worth only a fraction of their values before the U.S. ban, slumped further yesterday on news of the probe.
In London, Leisure & Gaming shares fell 0.75 pence to 11.5 pence (26 cents). PartyGaming shares were 3 pence lower at 27.75 pence. Sportingbet stock slumped 6 per cent to 35 pence. 888 Holdings stock slipped 4.25 pence to £1.16. Neteller shares were suspended last week.
The British government has been strongly critical of the U.S. position on Internet gambling, with Culture Secretary Tessa Jowell likening it to a new form of the 1920s Prohibition on alcohol.
Source Toronto Globe and Mail
News and Notes For Tuesday and Wednesday
2006
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Illinois-Indiana
Press Notes
won six of the last seven games, and 11 of the last 15, in the series. The Illini also own a five-game winning streak over the
Hoosiers at Assembly Hall. After playing Big Ten leader
on Saturday, the Illini next host Indiana, who is
tied for second in the conference.
plays three of its next four games at home. In six of its seven losses,
has led during the second half.
Northern Iowa-Southern Illinois
Press Notes
At the halfway point of the Missouri Valley Conference
season, the
Iowa
stands in sole possession of first place. The Panthers head to
Illinois
season-best 11-for-17 from three-point range against Missouri State Jan. 18,
including connecting on 8-of-10 from behind the arc in the first half. For the
season, the Panthers now have five players who have made at least 15
three-pointers. The Panthers have dropped nine straight games at SIU Arena. The last time UNI won
in
season, when it posted a 92-81 victory.
is 15-5 overall, 6-3 in Missouri Valley Conference action, and stands in a tie
for second place, one half game behind UNI.
San Diego State-UNLV
Press Notes
Less than 72 hours after returning home from facing 13th-ranked
Air Force, San Diego State (13-6 overall/2-3 MWC) faces
its second consecutive top 20 RPI team
when the Aztecs travel to Sin City to face UNLV (16-4/3-2
MWC). The Aztecs encounter their second consecutive
juggernaut at home, as UNLV has won eight straight
games at the Thomas & Mack Center this season, is 10-1 in 2006-07
and has won 18 of their last 21 home games dating back to last season (one of
those losses is to San Diego State). Tuesday marks the 40th meeting
between the schools with UNLV owning a
28-11 series lead. SDSU owns a school-best three-game
win streak against the Rebels, having swept UNLV last
season, winning 83-67 in San Diego, 81-70 in Las Vegas and 63-60 in Denver.
Virginia Tech-Miami
Press Notes
Looking to snap a three-game slide, the Hurricanes play
host to Virginia Tech Tuesday with an overall record of 9-11 and 2-4 mark in
ACC play following an 86-67 loss at Florida State Saturday.
continues to be one of the better three-point shooting teams in the ACC,
hitting an average of 6.3 three-pointers per game which ranks among the top
half of the league. The Hokies head to
with an overall record of 14-5 and are 4-1 in league play following a 67-64
overtime victory over
Sunday evening in
Press Notes
After proving itself capable of beating very good teams,
Virginia Tech has to be careful not to slip up against lesser opponents. The 24th-ranked
Hokies look to stay near the top of the ACC on Tuesday when they take on
slumping
Wins over No. 5 Duke and top-ranked North Carolina in a
recent eight-day span served notice that Virginia Tech (14-5, 4-1) is a
legitimate threat to win the ACC for the first time since joining the
conference in 1995.However, just four days after upsetting the Tar Heels, the
Hokies stumbled to an 82-73 loss at Florida State, which had lost its first
three conference games. Virginia Tech returned to the win column Sunday with a
67-64 overtime victory against visiting
and is tied for second with
one-half game behind
The Terps had a chance to win it with 10 seconds to play in regulation, but
missed a jumper from the corner.Virginia Tech’s 14-5
record is the program’s best mark through 19 games since it was 17-2 in the
1995-96 season, which marked its last trip to the NCAA tournament. The Hokies’
4-1 ACC record is their best in league play since they started 5-0 that same
season.
to end a three-game overall losing streak, and a three-game skid at home. The
Hurricanes shot only 35.5 percent (22-of-62) from the field Saturday in an
86-67 loss at
The Hurricanes are 35-105 all-time against ranked
opponents, including 1-1 this season.
last meeting with Virginia Tech 70-59 at home on Feb. 22. The Hurricanes have
won seven of 10 overall, and four of five at home against the Hokies.
Florida State-Boston College
Press Notes
which has won two consecutive ACC games, travels to play its third conference
road game of the season as they play at
Wednesday’s game having won two consecutive games with victories over No. 23
Virginia Tech (Jan. 17, 82-73) and Miami (Jan. 20, , 86-67) and play Boston
College hoping to win their third consecutive ACC game for the first time since
the 1994-95 season. Florida State is 11-1 at home, 2-4 on the road and 1-0 on a
neutral court this season and has two victories over ranked teams – current No.
1 Florida (Dec. 3, 70-66) and against No. 23 Virginia Tech (Jan. 17, 82-73).
The Seminoles are averaging 6.7 points more in the last three games (82.7 ppg)
than they are for the entire season (76.0).
Approved sportsbooks are at www.linetrackers.com
24, 2007
Tulsa-SMU
Press Notes
The SMU Mustangs (11-7, 0-4
Conference
host the Tulane Green Wave (8-8, 1-3 C-USA). The Mustangs and Green Wave have
each won nine times in series history. The Mustangs fell 59-56 at Fogelman
Arena in
home this season and are looking for their first league win this year. The two
home losses in conference have been examples of the thin line between victory
and defeat. The Ponies fell to Southern Miss 57-56 on Jan. 10, as Derrick Roberts left-elbow jumper at the buzzer was just long. SMU stormed back from 21 down in the second half to take a
one-point lead before falling. Against UTEP on Jan.
20, Donatas Rackauskas had
a game-tying three-point attempt with 17 seconds remining.
The Mustangs lead Conference USA in 3-point percentage defense (.304) and
rebounding defense (28.8) and rank second in rebound margin (+8.0) and scoring
defense (61.3). Nationally, the team is ninth in rebound margin, 40th
in blocked shots, and 42nd in scoring defense.
GA Tech-Maryland
Press Notes
Georgia Tech goes in search of its first road victory of
the season when it visits
Tech, 13-5 overall, 2-3 in the ACC, is coming off a 77-61 loss to No. 4 North
Carolina Saturday night, which snapped a two-game winning streak for the
Jackets.
and 1-4 in the ACC, dropped both its games last week on the road at Virginia
(103-91) and Virginia Tech (67-64 in overtime). The Jackets have dropped 15
straight games on opponents’ home courts, including 12 ACC losses, and has not
won a true road game since
2005
But the Yellow Jackets have had several close calls, including three one-point
defeats. One of those close calls was an 87-84 overtime loss to the Terps last
year at the
Tech is concluding a five-game stretch, beginning with its Jan. 6 game against
Clemson, against teams with an average current RPI of
14.6. They have a combined record of 77-16.
has won nine of the last 14, including both regular-season meetings in 2005-06.
Tech is 4-8 against
under head coach Paul Hewitt, 1-5 at
Tech is 16-20 vs. Gary Williams-coached
teams. Seven of the 12 games between Tech and
since Paul Hewitt became the head coach have been decided by 10 points or
fewer.
Kansas-Baylor
Press Notes
state when it travels to Baylor (11-7, 1-4) Wednesday. The Jayhawks
and Bears look to bounce back from road losses Saturday. KU fell at Texas Tech
69-64, while Baylor lost at
91-51.
10-game winning streak. Baylor has lost two straight heading into the
contest. No. 8/8
3-1) plays its second of four games in nine days at Baylor. The Jayhawks had a 10-game winning streak snapped at Texas Tech
69-64 Saturday. KU is scoring 76.5 points per game and giving up 59.7. The Jayhawks have held every opponent to under 50 percent
shooting this season and are making 48.4 percent to their opponents’ 37.6
percent from the floor.
forces 17.6 turnovers per game and averages 7.3 blocked shots per contest.
Baylor (11-7, 1-4) is looking to snap a two game losing skid after
handed the Bears a 91-51 loss at
Saturday. BU has lost four of its last five games with three of those on the
road. Additionally, three of the four losses have been by 10 points or less.
Baylor is scoring 75.8 points per game and giving up 69.3.
has won 11 of the 12 meetings with Baylor and has won five straight in the
series. Baylor’s lone win versus
came in 2001 when it defeated the then-No. 5 Jayhawks 85-77 in
Since the inception of the Big 12,
is 9-1 against Baylor.
Penn State-Iowa
Press Notes
2-3) plays the first of two home games when it hosts
24.
Saturday evening.
lost to
91-64 Saturday in
improved its home winning streak in Big Ten Conference games to 11 straight.
The Hawkeyes have won the last six meetings, 10 of the last 12, 11 of the last
14 and 13 of the last 17.
won both meetings last season, defeating the Nittany Lions 80-76 in
College
both 2004 and 2005.
9-3 advantage in games played in
with all 12 meetings taking place in Carver-Hawkeye Arena. The Hawkeyes have
won seven of the last eight meetings in
Tennessee-Mississippi
Associated Press
Chris Lofton’s sprained right ankle likely will keep
star guard out of Wednesday night’s game at
Lofton, who leads the Southeastern Conference in scoring at 21.5 points per
games, sprained the ankle in the second half of Saturday’s 64-61 victory over
Carolina
Press Notes
The Vols are in a stretch where
they are playing five of six games on the road. The stretch began with three
consecutive road games (at Vanderbilt, at Ohio State and at Auburn) before UT
returned home to play South Carolina Saturday, Jan. 20. The
game begins a two-game road trip that will continue at
Sunday, Jan. 28. Each of
last four games has been decided by one possession. The four games have been
decided by a combined total of nine points. Vanderbilt scored on a tip-in as
time expired to take an 82-81 win in
Jan. 10 and then
needed a 3-pointer with 11.2 seconds left for a 68-66 victory in
took an 83-80 win Jan. 17 and then UT defeated South Carolina 64-61 on Jan. 20.
ranks seventh in the nation with 83.2 points per game. The Vols
will be without the services of All-America guard Chris Lofton Wednesday night.
Lofton, who is leading the SEC in scoring with 21.5 points per game, suffered
an injury to his right ankle Saturday, Jan. 20. X-rays performed Monday were
negative and his status remains out indefinitely.
2007
Weber State-Idaho State
Press Notes
Idaho State University’s men’s basketball will look to get
back on the winning track by starting a four-game homestand
on Thursday night in a huge game, as the first place Bengals take on the
tied-for-second Weber State Wildcats.The game is the
second of the season between the two schools, as Idaho State won the opener
58-55 in Ogden on January 4.
is 10-9 on the season, and 5-1 in the Big Sky Conference, good enough for first
place, one game up on both
and
four teams, including
The Bengals had their five game winning streak snapped with a 58-57 loss at
0.9 left. The Wildcats are 12-9 overall, and their 5-3 record has them tied for
second in the Big Sky, and they would move into a virtual tie for first with ISU with a win on Thursday. The Wildcats have lost two
straight, dropping a 90-86 overtime decision to the Montana Grizzlies after
losing 63-48 to
on Thursday.
Oregon-Washington
Press Notes
In the wake of a tough road stretch, the Washington
Huskies (11-7, 1-6 Pac-10) eagerly return to the friendly confines of Bank of
America Arena to host seventh-ranked Oregon (18-1, 6-1) on Thursday, Jan. 25 at
8 p.m. Washington won in each of the Ducks’ last five visits to Seattle. The
Huskies have an 11-1 home record this season and are 0-6 in road contests.
Thursday’s game begins a stretch when UW will play five of its next seven games
at home. That’s the opposite of the way the Huskies opened Pac-10 play, with
five of seven on the road. On Saturday, Jan. 27, UW entertains
will be without the services of leading scorer (18.4 ppg) Aaron Brooks, a
product of
Thursday’s game due to an incident during the last meeting between the Ducks
and Huskies, This Season’s Record vs. Ranked Opponents: 1-3. All-Time Record
vs. Ranked Opponents: 75-199 (won 7 of last 8 games in
vs. ranked foes). Last Win Over a Ranked Opponent: UW 88, #12 LSU 72 (