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In a statement issued by Curacao-based Pinnacle Sports, the company has denied any of its officials have been arrested as part of a massive nationwide sting operation that netted the Sportsbook Director of the M Resort, Michael Colbert.
Pinnacle Sports, one of the biggest sports betting operations in the world, issued this statement regarding Wednesday’s sweeping indictments:
Regarding the recent allegations surrounding the individuals allegedly affiliated with Pinnacle Sports, please be reassured that no Pinnacle Sports employees have been arrested or charged, and Pinnacle Sports itself was not charged in the indictment. We expect no interruptions to our day to day business activities at this time, and will continue to provide our clients the excellent value and service Pinnacle Sports has been known for."
Gambling911.com first broke the story early Wednesday afternoon via Twitter after being tipped off that upwards of 40 people were rounded up as part of a lengthy investigation into a $50 million bookmaking operation. The Las Vegas Review Journal later confirmed that those arrested included Colbert and operatives US law enforcement claim were working on behalf of Pinnacle Sports.
Dozens of search warrants and asset seizure warrants were executed in multiple jurisdictions in New York, New Jersey, Pennsylvania, Nevada and California, resulting, to date, in the seizure of real property and more than $7.6 million in cash and gambling chips.
The arrests and/or warrants were carried out by the New York City Police Department’s Organized Crime Investigation Division, the FBI’s Asset Forfeiture Section, the Nevada Gaming Control Board, the New Jersey State Commission of Investigation, the Monmouth County (NJ) Prosecutor’s Office, the New Jersey State Attorney General’s Office, the Pennsylvania State Police and the Los Angeles Police Department. Furthermore, the Office of Loretta E. Lynch, the United States Attorney for the Eastern District of New York, has filed asset forfeiture warrants against the defendants’ assets.
Eight defendants were arrested yesterday and arraigned in Queens County Supreme Court in Kew Gardens. Seventeen additional defendants were arrested yesterday in New Jersey, Pennsylvania, Nevada and California. The defendants are all charged with Enterprise Corruption – a violation of New York State’s Organized Crime Control Act – as well as being variously charged with promoting gambling, money laundering and conspiracy. They each face up to 25 years in prison if convicted.
Pinnacle Sports had exited the US “post up” market in early 2007 following passage of the Unlawful Gaming Internet Enforcement Act (UIGEA), however, the investigation suggests that Pinnacle still utilized operatives within the States to conduct business via credit, whereby gamblers would settle up through cash exchanges with agents allegedly acting on behalf of the sportsbook.
Colbert remained behind bars on Thursday.
- Chris Costigan, Gambling911.com Publisher
