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may
14

Poker Processor Pleads Guilty in New York

Tags: conspiracy, Douglas Rennick, fraud, gambling, New York.
Posted on 14 May 2010 by "K".

Douglas Rennick said in federal court yesterday, “I had business that transferred money from offshore gaming sites to American players within the Southern District of New York,” as he pleaded guilty towards a single count of dealing offshore bets.

Rennick is a Canadian who is alleged to be behind quite a few online poker payment processing companies.  He will be sentenced on September 15.  Rennick’s lawyer said that his client’s plea will mean the forfeiture of $17.1 million as well as 6 to 12 months incarceration.

This is far less from what he could have faced if he had not pled guilty and then found to be guilty of all charges he is facing in federal court.

Aside from being charged of processing offshore bets, Rennick was also indicted last August for bank fraud conspiracy, gambling conspiracy, and money laundering conspiracy.  Should he be convicted of all the charges, he would be facing up to 55 years of imprisonment.

Rennick has been alleged of having been operating several shell companies which he used for transferring money to and from online gambling companies which included Account Services Corporation, Alenis Limited, Check Payment Financial Co, KJB Financial Corporation, and My ATM Online.  These companies were some of the companies that online poker players could possibly recognize from their checks.

A lot of poker players as well as the people that were involved in the industry expressed their strong disapproval over the indictment during that time because the federal government has been playing hard ball.  The gambling charge he was being accused of was in fact the least heavy of the three.  The most he would have faced could have come from bank fraud and money laundering charges, both of which he did not admit to in his plea deal.

The indictment read, “Rennick did not disclose to Washington Mutual Bank that KJB Financial Corporation would process payments from internet gambling companies. Instead, Rennick falsely and misleadingly represented that his company would issue checks ‘for the following reasons’…”

Among the reasons that Rennick had allegedly gave were affiliate checks, rebates, refunds, minor payroll, and sponsorship checks.

The Southern District of New York as a record of chasing online poker-related cases.  They were able to seize over $34 million of poker funds in June of 2009 which were about to be sent out players on several poker sites.  This included Absolute Poker, Full Tilt, Pokerstars, and UB.

A man who was alleged to be Daniel Tzvetkoff was arrested in Las Vegas last month for laundering money as a poker payment processor as well.  New York’s Southern District will be heading up that investigation as well.


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11 comments on "Poker Processor Pleads Guilty in New York"


 B1gfoot14/05/2010 09:50:51 GMT
Lucky lucky man, play with the Gov expect a bum beating.
Any one like to guess what happens to the mills?
 leroi2114/05/2010 21:07:03 GMT
that story is like the maddof thing but less big and in poker domain
there is always a human tha gonna try to steal money for imself.....
 jessthehuman15/05/2010 01:01:34 GMT
that story is like the maddof thing but less big and in poker domain
there is always a human tha gonna try to steal money for imself.....

He was acting as an intermediate between US players and the Online Poker Rooms. He was part of the reason US players have been able to play online poker. Did you actually read the article?
 SCDossett15/05/2010 04:12:25 GMT
I bet this decision has the Full Tilt guys shaking in their boots.

It is not a good decision for poker players in US in general.
 DAGOR17/05/2010 15:18:37 GMT
Hello everybody!
When there is too much money there are always thieves is mandatory. I hope that because of them things do not go further complicated for poker players.
See you soon for new posts lol!
 teteban17/05/2010 17:32:59 GMT
what does the madoff case have to do with this, leroi? This guy was acting as middle man becuase the US doesn't let people play. Granted, he was very shady about it, but it doesn't seem at all that his clients got hurt by him in any way
 Synthetikos17/05/2010 18:14:31 GMT
yep,the guy took money for himself and his groups of interests,but made also things which can be considered as positives by Us players
 KoldShadow17/05/2010 21:13:14 GMT
It's a shame, I have just started to play poker online intensely, and all I see is states cracking down on interstate and international trade, thanks to the UIGEA bullshit bill. Whatever, I love poker and I'll find a way to play for real money outside of casinos, no matter what the consequences! I see myself moving to Canada one day anyway so maybe I won't have to worry about it here in the U.S.A. . . .
 jessthehuman18/05/2010 00:48:41 GMT
reading *some* of the replies to this article, really makes me worry about peoples levels of comprehension of a news article. How much do they actually read/understand? How much to they just invent based on their pre-conceived notions of what it is probably about..??
 Flippedchips18/05/2010 10:55:24 GMT
lol why the hell are people talking about thieves lol i see what u mean jess lol
 SuperNoob06/06/2010 17:44:50 GMT
its kinda badnews for american poker players who were getting their funds transferred cos of him. but his bank frauds and other crimes exoosed him.
55 years,lol do they even give these kind of punishments these days


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