‘Billion dollar’ online sportsbetting ring shutdown in New York
News on 30 Jun 2016
News on 30 Jun 2016
The New York newspaper Metro reported Thursday that Brooklyn District Attorney Ken Thompson has issued a statement detailing the arrest and arraignment in Brooklyn of four men on charges of enterprise corruption, first-degree promoting gambling, second-degree possession of gambling records and fifth-degree conspiracy.
The 57-page indictment details several online gambling sites alleged to have been operated by the ring through Costa Rica, where a cash flow of $200,000 a month was required to sustain the level of activity.
Gordon Mitchnick, 58, Joseph Schneider, 39, and Claude Ferguson, 43, all of California, and Arthur Rossi, 66, of Manhattan, are accused of involvement in the large-scale gambling ring that operated via the websites wagerabc.com, thewagerspot.com and hustler247.ag, the DA claims.
During the 2015 NFL season alone, the ring allegedly took in approximately $927,000,000 in wagers.
“Illegal gambling is not a victimless crime – it preys on people’s vulnerabilities and directly leads to money laundering, loansharking and a host of other crimes,” DA Thompson said, adding that the bust was possibly the biggest one ever achieved by a local prosecutor’s office.
The illegal enterprise used a variety of methods to launder its proceeds including transporting cash, electronic wire transfers and the purchase of over 20 houses as a means to hide gambling profits, the DA elaborated.
DA Thompson has previously been involved in illegal online sports betting busts, the most recent being the shuttering earlier this year of a $13 million ring which also worked through Costa Rica.
