Internet Gambling Fraud Case Ends In Guilty Plea For Canada Man

The US continued to crack down on crimes related to online gambling on Wednesday when Douglas Rennick pleaded guilty to one count of processing offshore bets of US citizens. The Canadian man was accused of setting up bank accounts to pay US gamblers their winnings from offshore betting sites.

Rennick could have faced a much stiffer penalty if he was convicted of bank fraud. Instead, Rennick decided on Wednesday to plea to the lesser charge. He is accused of processing hundreds of millions of dollars for US customers.

Rennick operated through companies he owned that authorities identified as Check payment Financial Co., Account Services Corp., KJB Financial Corp., and My ATM Online. all of the companies had accounts set up at various banks to pay the online gamblers from the US.

US lawmakers have created the Unlawful Internet gambling Enforcement Act back in 2006, but the rules for that law have not yet gone into effect. The rules were scheduled to take effect last December, but Representative Barney Frank and other lawmakers successfully lobbied to have the implementation of the law delayed.

Now, only a few weeks remain until that delay expires, and Rep. Frank has introduced legislation to overturn the UIGEA. The bill, however, has not been discussed in hearings as of yet, and the law will likely not be changed before the UIGEA takes effect.

As for Rennick, he agreed to forfeit $17.1 million and is scheduled for a sentencing where he could land in prison for anywhere from six to twelve months. The sentencing is scheduled for September 15th.

"I had a business that transferred money from offshore gaming sites to American players within the Southern District of new York," said Rennick, when asked by US District Judge Sidney Stein what his crime was, as reported on Bloomberg.com.

May 11, 2010
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
Submit News!

Kane County Officials Expected To Overturn Video Gambling Ban
New Casino Gambling Plan Discussed In New Hampshire Senate
Kentucky Poll Shows Voters In Favor Of Expanded Gambling
Video Lottery Terminal Gambling Industry About To Heat Up In Italy
Video Lottery Terminal Gambling Industry About To Heat Up In Italy