Poker Funds Seizure Update

A New York Circuit Court judge has ruled in favour of a media company which contested the need for official enforcement warrants and documents to be sealed in a case that involved the seizure of $40 million from cash processing companies and banks.

But certain information could be redacted (blanked out), the judge ruled, possibly reducing the value of the unsealed documents.

The case was brought before Judge Laura Taylor Swain by Gambling911 parent Costigan Media last week in a bid to improve official disclosures on sealed warrants detailing enforcement moves against a number of financial companies allegedly involved in the movement of gambling monies. The enforcement action created major mainstream press headlines reporting the seizure of $40 million, mainly destined for winning poker players.

The seizures were made on an FBI request from Union Bank and Wells Fargo branches in California after Judge Theodore Katz issued the warrant for the Wells Fargo funds, and Judge Henry Pitman issued a warrant for Union Bank.

Costigan Media launched a legal action through New York law firm Baruch Weiss, and yesterday (Tuesday) this resulted in Judge Swain ruling that there was not enough "compelling reason" to keep the warrants and other related court documents sealed.

Earlier, federal enforcement officials had fought to keep the documents under seal, arguing that they were "....actively investigating matters discussed in the affidavits that Costigan seeks to unseal. Under these circumstances, granting Costigan’s motion would be unprecedented.”

It is understood that Costigan Media has since asked the courts to reconsider at least some of the redactions.

Since the seizures, a further action against financial institutions allegedly handling gambling monies has been launched by enforcement agencies. In this action, a Canadian resident, Douglas Rennick (34), has been indicted in the United States on fraud and related charges for processing some $350 million for Internet gambling firms.

Cryptologic 14 top games to be provided to Loto-Quebec - 02/08/2012 : The companies have signed a multi-year agreement that will see Cryptologic providing a portfolio of quality games to the Societe du jeu virtuel du Quebec, the online gaming division of the provincial state lottery corporation Loto-Quebec, known as Espacejeux.

Utah : Online Gambling : HB108 - 02/08/2012 : An intrastate attempt by Utah politician Stephen Sandstrom to introduce state legislation banning any legalisation of internet gambling has failed at the start gate.

MORE U.S. DISCUSSION ON INTERNET GAMBLING DUE THIS WEEK - 02/08/2012 : Interest in online gambling in the United States is set to continue on Thursday this week when the US Senate Committee on Indian Affairs meets to hear the views of a wide cross section of interested parties on the possible impact of legalised internet gambling on tribal gaming.

Judge wont dismiss DoJ Black Friday charges - 02/08/2012 : Former Utah banker John Campos and e-processor Chad Elie, who face charges relating to the payment processing of online poker transactions, suffered a setback Tuesday when a Manhattan judge refused to allow their motion for dismissal of Black Friday indictments against them.

ANOTHER MAJOR INTERNET GAMBLING BUST IN MALAYSIA - 02/08/2012 : Police units in Malaysia raided a series of premises in a week long anti-online gambling operation, seizing 225 computers and detaining 47 men, according to reports from the Bernama news agency. All of the detained men were later released on bail.