..

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

When is a Sportsbook is Responsible for Their Faulty Lines, Koepka a Liability

When is a Sportsbook is Responsible for Their Faulty Lines, Koepka a Liability

""At what point does a sports book become responsible for their own errors?"

Unmasked Man Removed in Handcuffs From Vegas Casino

Unmasked Man Removed in Handcuffs From Vegas Casino

Video of a gambler in Las Vegas being cuffed by security for refusing to wear a mask in the 4 Queens Casino has surfaced on The Sun website, not to mention headlining the Drudge Report.

"Evolve or Die": Tribal Chief Talks Draftkings Partnership in MI

"Evolve or Die": Tribal Chief Talks Draftkings Partnership in MI

Bryan Newland, chairman of the Bay Mills Indian Community, explained why his tribe was so quick to partner with Draftkings in an effort to bring legalized sports betting to Michigan.

PGA Tour Next Frontier for Gambling? Wirecard Processed for Mafia-Controlled Casino

PGA Tour Next Frontier for Gambling? Wirecard Processed for Mafia-Controlled Casino

PGA Golf is looking to make a major impact in the world of legalized gambling and sports betting.

Hill's Asher in Line of Fire Following Twitter Tirade Attacking Offshores

Hill's Asher in Line of Fire Following Twitter Tirade Attacking Offshores

VSiN's Gill Alexander @beatingthebook is the latest to lash out at William Hill CEO Joe Asher for his attack on the offshore sports betting industry.

Syndicate