Government Loses Secrecy Of Online Gambling Money Laundering Case

The United States government has been relatively quiet on the Internet gambling front since they passed the Unlawful Internet Gambling Enforcement Act. While legislators scurry around trying to figure out how to enforce the ill advised Bill, the federal government has been busy watching the online industry.

It has been reported by City Paper that two men with associations to the online gambling giant, Bodog, have had money laundering charges filed against them. Outside of the charges themselves, little more is known about the case.

There is no court date set for the case, nor are either of the accused, Michael Garone or Edward Courdy, being held on the charges.

That may be just how the government wanted it. They may have been planning to use the case as a groundbreaking one that could scare the online gaming industry after the UIGEA. Up until now, no effort has been made to enforce the UIGEA, but if this case moves forward, it could still send a message that the government is keeping an eye on Internet gambling companies.

The two men were described as processors of illegal gambling transactions in the United States in forfeiture hearings earlier this year. The fact that they were both charged with money laundering, but not held, could mean several things.

The U.S. Attorney's Office in Maryland, where the charges were filed, has confirmed to City Paper that the two men were not being held in custody, and that indeed, there has been no court date.

"It could be possible that the two men are cooperating with authorities for the purposes of bringing down others who were involved in this, or other, cases," said legal analyst Bob Leifly. "If they are helping the government, it is possible that the government is following leads given to them by the two men before they decide whether to move forward with their cases."

Whenever the first charges resulting from the UIGEA are filed, it is sure to be big news. Although this money laundering scheme is separate from the UIGEA, analysts believe that the government was going to make examples of these two men by releasing the information at their convenience.

Now, however, the public has found out about the charges of Garone and Gourdy, and it should not belong until the rest of the details are leaked. Whether the leak comes from a news agency or the government is the burning question.

October 31, 2008
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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