Online Poker Account Seizures Lead to Canadian's Indictment
A Canadian man was charged with bank fraud, money laundering, and illegal gambling in relation to his part in transferring funds from online poker rooms to the US players who had winnings coming to them. Douglas Rennick is alleged to having opened the accounts under false pretenses, telling banks checks would be written for rebates and payroll.US attorneys are saying Rennick hid the purpose of the accounts because he knew banks wouldn't allow gambling transactions. Along with Rennick's charges, the indictment also asks for the forfeiture of $565.9 million, which is presumably the total sum to have been run through the suspect accounts.
A month ago, federal agents seized bank accounts containing some $30 million, while refusing to release warrants. Media demands to view the documents under public disclosure laws were met with assertions of ongoing investigations.
Unlike the quick reactions to defend online poker rooms and their attempts to pay gamblers when the funds were seized, gaming industry personnel were more cautious about Rennick's charges. Interactive Media Entertainment and Gaming Association Chairman Joe Brennan, Jr., professed to want a closer examination of Rennick's actions before offering an opinion.
"We’re going to take a step back to see what the processor has been doing," said Brennan to Poker News Daily. "If they’ve been engaged in bank fraud, then they are not doing the online poker world any favors.”
Lying on applications for bank accounts may provide federal authorities with the most concrete evidence of a crime in the long history of endless investigations into online gambling and Internet poker.
Rennick is accused of having set the accounts up for a series of payment processing companies, including Account Services, My ATM Online, and Check Payment Financial, to pay debts from both online poker sites and online casinos, but no sports books.
