Florida Resident Held for Processing Internet Poker Payments
A German citizen living in Naples, Florida, is being held without bond by federal authorities who say he violated money-laundering laws in processing payments to Internet poker players. Michael Olaf Schuett is being held as a flight risk after a complaint detailing millions in money transfers that went through Schuett's numerous accounts and businesses, allegedly to pay online gambling winners in the US.Law enforcement officials were alerted by employees at local banks and executives from Federal Express, after highly suspicious routines in check cashing and shipping were noted by the civilians. FedEx employees reported over 50 packages a day being mailed from Schuett's house.
When the parcels were opened, each one was found to contain at least one check.
Meanwhile, bank managers saw millions coming and going to the hundreds of companies registered under his name, both as wire transfers and in the form of cashed checks.
Despite the lack of a federal law against online poker, and the determination by the courts that the looming UIGEA prohibition only affects gambling already declared illegal by other law, authorities appear to have a strong case against Schuett for failing to register with Florida's Bureau of Financial Investigations as a money transmissions operator.
With the volume of traffic being handled by Schuett, money-laundering charges applied for failing to disclose his true business fall into the category of first-class felonies.
Bank officials at several banks had accused Schuett of operating an online gambling business. They say he replied that such activity is not illegal, but bank managers misinformed him that Internet gaming is illegal.
