..

Man Indicted in Online Poker Crackdown Pleads Not Guilty

Written by:
Guest
Published on:
Apr/18/2011

By Jonathan Stempel

NEW YORK (Reuters) - An Illinois man pleaded not guilty on Monday to charges he helped three popular online poker websites trick banks into illegally processing payments from U.S. customers.

Bradley Franzen entered his plea before U.S. Magistrate Judge Frank Maas in Manhattan federal court. Prosecutors had accused Franzen of operating an illegal gambling business and conspiracies to commit bank fraud and money laundering.

Franzen, 41, was among 11 people charged on Friday, when U.S. authorities seized the Internet domain names for Absolute Poker, Full Tilt Poker and PokerStars. These seizures effectively shut down their online gambling businesses, which are based outside the United States.

The case may test whether a 2006 U.S. federal law, which prohibits Internet gambling businesses from accepting payments from the United States, can be applied to entities based in other countries.

Prosecutors said Franzen was among four defendants who were highly-compensated "payment processors." These defendants created fake companies that purported to sell such items as golf balls and jewelry to disguise payments and lied to banks about the transactions, prosecutors said.

Dressed in a blue plaid shirt and tan pants, Franzen said "not guilty, your honor" when asked on Monday for his plea.

Bail was set at $200,000, secured by equity on the home of Franzen's parents. "That seems reasonable under the circumstances," Maas said.

Sam Schmidt, a lawyer for Franzen, had no immediate comment after the hearing.

Another defendant, accused payment processor Chad Elie, was scheduled to appear in a Las Vegas federal court on Friday.

Co-defendant John Campos, a vice chairman and part owner of privately-held SunFirst Bank in St. George, Utah, was scheduled to appear later Monday in a federal court in St. George.

Eight other defendants are outside the United States, prosecutors said.

The case is U.S. v. Franzen, U.S. District Court, Southern District of New York, No. 11-mj-00706.

 

 

Follow breaking headlines around the clock at Gambling911.com Twitter Here

Gambling News

First Things You Need to Know About Starting Your Own Online Sportsbook

First Things You Need to Know About Starting Your Own Online Sportsbook

The sports betting industry is, for sure, one of the biggest and most profitable you will ever find in the modern world. Betting on sports, casino games, horse racing, and other gambling products, have become one of the most popular hobbies and fun daily activities for millions and millions of people from all over the world, and if you can get in on it and run your own operation, then you will most probably start getting a good piece of the pie. 

Gambling Company Stocks Tanking, Calls for Ban on Team Sponsorship Deals

Gambling Company Stocks Tanking, Calls for Ban on Team Sponsorship Deals

Investors appear concerned over Penn National's “free” customer acquisition through the Barstool brand, and DraftKings spend to acquire its customers.

Sports Betting Set For Explosive Growth in 2021:  CEOs Share Outlook

Sports Betting Set For Explosive Growth in 2021: CEOs Share Outlook

Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: MGM Resorts International (NYSE: MGM), FansUnite (OTC: FUNFF) (CSE: FANS), fuboTV (NYSE: FUBO), and DraftKings (NASDAQ: DKNG).

Can Weed Help Build Atlantic City?

Can Weed Help Build Atlantic City?

Rebuilding the iconic Atlantic City Boardwalk to enable it to survive future severe storms; improving the look of the city’s main downtown business districts; helping people in underserved communities, and embracing the “blue economy” of the ocean are among recommendations from a state-appointed panel studying ways to improve the seaside gambling resort.

Poker Player, Sports Bettor Jailed for 14 months in $1million Tax Evasion Case

Poker Player, Sports Bettor Jailed for 14 months in $1million Tax Evasion Case

A Connecticut sports bettor and part-time poker pro has been sentenced to 14 months in prison for evading taxes on more than $1million of poker gambling winnings.  He must also pay back more than $800,000.

Syndicate