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Tuesday, Feb. 28, 2012 | 12:36 p.m.
BALTIMORE — The sports gambling site Bodog was shut down and four Canadians indicted, including founder Calvin Ayre, for illegal gambling that generated more than $100 million in winnings, federal prosecutors announced Tuesday.
The website's domain name was seized Monday and the indictments, which were returned Feb. 22, were unveiled Tuesday in Baltimore, prosecutors said.
The indictments follow federal prosecutions last year of three of the biggest websites involved in online poker. More than 75 company bank accounts in 14 countries have been frozen, and authorities are seeking $3 billion in fines and restitution, in that investigation.
In addition to the 50-year-old Ayre, prosecutors say the indictment names website operators James Philip, David Ferguson and Derrick Maloney.
Gamblers in Maryland and elsewhere were sent a least $100 million by wire and check from 2005 to 2012, the U.S. Attorney's office said, adding Bodog conducted a $42 million advertising campaign between 2005 and 2008 to attract gamblers to the Bodog.com website.
The operation allegedly moved funds from Bodog's accounts located in Switzerland, England, Malta, Canada and elsewhere to pay winnings to gamblers. The four Canadians face up to five years in prison for conducting an illegal gambling business and 20 years for money laundering. Bodog.com faces a fine of up to $500,000 for gambling and money laundering. Initial appearances for the individuals have not been scheduled.
Marcia Murphy, a spokeswoman for the U.S. Attorney's office in Baltimore, said the four are not in custody. Spokeswoman Vickie LeDuc said later Tuesday that arrest warrants had been issued for the four.
An affidavit filed along with the warrant to seize the site said investigators created accounts with Maryland addresses and received checks in the mail for winnings. The affidavit also said investigators interviewed a former Bodog employee who named top officers and directors and said the company had hundreds of employees in Canada and Costa Rica handling day-to-day operations.
"Sports betting is illegal in Maryland, and federal law prohibits bookmakers from flouting that law simply because they are located outside the country," said U.S. Attorney Rod J. Rosenstein. "Many of the harms that underlie gambling prohibitions are exacerbated when the enterprises operate over the internet without regulation."
Prosecutors say the investigation was led by the U.S. Immigration and Customs Enforcement Homeland Security Investigations in Baltimore and also involved the Internal Revenue Service, Anne Arundel County Police and Maryland State Police. HSI agents seized the domain name on Monday.
"Sports betting is illegal in Maryland, and federal law prohibits bookmakers from flouting that law simply because they are located outside the country," said U.S. Attorney Rod J. Rosenstein.
For an educated man, that is an incorrect and frankly weird sentence. Perhaps me meant to say that federal law still applies despite the fact that the defendants are located outside the country.
As with the Megaupload case, isn't anyone else concerned our federal government is roaming the globe, like our military, looking for something to do?? Unless allowed by treaty, outside the U.S. = outside U.S. jurisdiction!
"[The law] has placed the collective force in the service of those who wish to traffic, without risk, and without scruple, in the persons, the liberty, and the property of others; it has converted plunder into a right, that it may protect it, and lawful defense into a crime, that it may punish it." -- Frederic Bastiat, 1850 "The Law"
If child pornography were, say legal in some flea bag third world country...could someone set up shop and trade their wares over the internet to people in the U.S.? I would think not. Same applies to gambling. Illegal is illegal.
Why did the GOP attach this anti-Gambling bill to the Port authority bill, And why are the GOP so anti-Business.
When someone says Wall Street or Casino I think the same thing, Money changes hands on account of speculation.
It must be nice operating illicit gambling operations in America where the tax-paying sucker's government indicts your competitors, seizes their assets and erects a museum in your honor.
You just can't make this stuff up.
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Why don;t the Indians take over internet gambling?
Could the Fed's do anything about it?
I used Bodog, good service and the guys were honest, never a problem, gee I think our government as other things to do, like our country is falling apart.
In a way I'm glad to see this, but it's hard to estimate how many millions in business they took away from legal sports books and thus the Nevada economy.