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Sports Betting Scam Bilked Investors Out of $1 Million
The U.S. Attorney's Office in Nevada has charged Yul Na with 30 counts of wire fraud, 29 counts of money laundering and criminal forfeiture related to a sports betting scam that bilked investors out of nearly $1 million. Na has been charged with money laundering and fraud charges and will have to pay a $250,000 fine on each count as well as the forfeiture of money or property up to $962,350.
The indictment claims that Na guaranteed investors an 8 percent return based on a system of carefully timed sports bets with Mandalay Bay and an online sports betting website. Na would essential middle games (bet both sides). Middling is a common practice among professional sports bettors and opportunities are widely promoted on the Gambling911.com website during the NFL and College Football season whereby different online sportsbooks offer lines that are a one point variance or greater.
Such free information was not being offered by Na, who required the initial investment.
Na also claimed to have an agreement with Mandalay Bay for his “betting system”, which was not the case.Rather, he instructed investors to wire money into his personal casino account at Mandalay Bay, using the money to gamble at the property, according to the indictment.
The Internal Revenue Service and Nevada Gaming Control Board collaborated on the investigation. The agencies have strengthened such collaborative efforts in the past year with the goal of ensuring that casinos and nightclubs comply with federal cash reporting rules.
Under federal laws designed to combat money laundering, casinos, nightclubs and other cash-rich businesses are required to fill out forms when customers make large or suspicious-looking cash transactions. Casinos send them to the IRS for review.
Paul Camacho, special agent in charge of IRS criminal investigations in Las Vegas, declined to comment on whether such cash reporting forms tipped off authorities to the alleged scam.
"Hopefully, this indictment sends a message to anyone that might be engaged in fraud that you are not completely off law enforcement’s radar when you are in Vegas," special agent in charge of IRS criminal investigations in Las Vegas Paul Camacho said.
An arrest warrant has been issued for Na.
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Submitted by C Costigan on Wed, 07/21/2010 - 21:40