..

Eastern District of PA US Attorney’s Office Likely to Nail Processor by Year’s End

Written by:
C Costigan
Published on:
Sep/14/2011
Eastern District of PA US Attorney’s Office

The Eastern District of Pennsylvania US Attorney’s Office is said to be “very close” to concluding the discovery phase of its case against magazine publisher and former online gambling payment processor Don Hellinger. 

“They (The US Attorney) want Hellinger bad and they are digging into his Internet gambling past to do so,” remarked a Gambling911.com source. 

A handful of the companies Hellinger processed for before shutting down in 2006 still operate today, but to show the fluidity of the industry, most have ceased operating.  Case in point, BetOnSports.

Hellinger, a former publisher of Nylon Magazine and Inked, was charged with the illegal distribution of over $40 million in Internet gambling winnings during the years 2005 and 2006 through a money transfer company, Payment Processing, Inc. 

The US Attorney’s Office initially sought to convict Hellinger for an alleged scheme to defraud senior citizens through a telemarketing venture operating over that same time period.  It was not until recently that his sojourn into online gambling came to light. 

“State prosecutors, federal prosecutors and the SEC has been trying to put the (Hellinger) gang in jail for almost two decades now,” our source said. 

Gambling911.com has reported extensively on what is perceived by some to be an “incestuous” legal arrangement. 

Three of the attorneys in this matter simultaneously represented clients in the BetOnSports indictment out of St. Louis, Missouri, which was at the same time a civil fraud complaint was filed against Hellinger in Philadelphia, Gambling911.com is learning.  One attorney in the Hellinger case, Anne Dixon, reportedly represented BetOnSports defendant Tim Brown, who was among nearly a dozen BoS executives and employees charged with violation of gambling laws.  BetOnSports founder Gary Kaplan and CEO David Carruthers were charged with money laundering and tax evasion.  Carruthers is currently serving the final months of his sentence in his native England after being transferred from St. Louis back in April.

“You cannot have the same attorney representing two different clients in two different, separate federal investigations for the similar offenses committed over the exact same time span,” our source noted over the summer. 

There is every indication that this US Attorney wants to make an example of Don Hellinger and his associates and is prepared to do so through Hellinger’s connection with online gambling.

Any action taken against Hellinger would have zero impact on players since this payment processor has not operated for well over five years now.

- Chris Costigan, Gambling911.com Publisher

Gambling News

New Age Gambling: The Future with Cryptocurrency

New Age Gambling: The Future with Cryptocurrency

The online global gambling market is set to grow at a compounded annual growth rate of 8.77% in the run to 2024.  Technology

Can I Play on Fox Bet From Illinois?

Can I Play on Fox Bet From Illinois?

You will not be able to play on Fox Bet from Illinios, at least not yet.  The company has opted not to allow those in Illinois to place wagers until it obtains a license from state regulators.  Currently sites like BetOnline, which are licensed outside the state, are available for real money betting within Illinois (residents and visitors alike can play on the site).

Trump Pardons Former 49ers Owner Charged in Gambling Case

Trump Pardons Former 49ers Owner Charged in Gambling Case

President Donald Trump on Tuesday pardoned Edward DeBartolo Jr., the former San Francisco 49ers owner convicted in a gambling fraud scandal who built one of the most successful NFL teams in the game’s history.

Matchbook Betting Exchange UK License Suspended

Matchbook Betting Exchange UK License Suspended

The United Kingdom Gaming Commission has temporarily suspended the license of Matchbook betting exchange for reasons that are not yet clear.  All betting has ceased as a result.

Man Wounded, Another Arrested After Casino Stabbing

Man Wounded, Another Arrested After Casino Stabbing

A Massachusetts man has been charged with misdemeanors in connection with the stabbing of a Rhode Island man at a Connecticut casino.

Syndicate