Breaking: Calvin Ayre indicted
Baltimore authorities open indictment against Bodog founder.
Federal prosecutors in Baltimore have indicted Bodog founder Calvin Ayre and three other individuals connected to the company just hours after the US authorities seized the company’s dot.com domain.
A federal grand jury has indicted parent company Bodog Entertainment Group S.A., and four individuals, for conducting an illegal sports betting business and conspiracy to commit money laundering. The indictment was announced by US Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge William Winter of US Immigration and Customs Enforcement and Homeland Security Investigations; and Acting Special Agent in Charge Eric C. Hyton of the Internal Revenue Service “ Criminal Investigation.
The individuals named in the indictment are Ayre; business partner James Philip; David Ferguson and Derrick Maloney, with Rosenstein commenting: “Sports betting is illegal in Maryland, and federal law prohibits bookmakers from flouting that law simply because they are located outside the country. Many of the harms that underlie gambling prohibitions are exacerbated when the enterprises operate over the internet without regulation,”
The indictment alleges that the defendants conducted an illegal gambling business from at least 9 June 2005 to 6 January 2012, moving funds from Bodog accounts based in Switzerland, England, Malta, Canada and elsewhere to pay players, media brokers and advertisers in the States. Prosecutors suggest that at least US$100m was sent by wire and cheque to gamblers located in Maryland and elsewhere.
It goes on to claim that in order to attract players to the Bodog.com site, the indictees used a media broker to run an advertising campaign, paying over $42m in costs for advertising over the seven year period.
Agent Winter added: “Today’s indictment of Bodog Entertainment Group S.A. and its founder and operators sends a strong deterrent message to those that facilitate illegal online sports betting operations and commit crimes against our nation’s financial system.
“The proceeds from illegal internet gambling are sometimes used to fuel organized crime and support criminal activity. ICE HSI, together with our law enforcement partners, will disrupt and dismantle organizations that commit these crimes, regardless of their location, whether here in the United States or abroad,” Winter added.
An ex-Bodog employee is thought to have blown the whistle, with an affidavit claiming he told investigators that the company has hundreds of employees in Canada and Costa Rica handling the day-to-day business of taking bets, tracking sports events, site maintenance, customer service and marketing.
Bodog.com is likely to be fined $500,000 if it is charged with the offences. Should those accused be found guilty, they are liable to face a five-year prison term for running a gambling business, and up to 20 years in prison for money laundering.
Acting IRS Special Agent in Charge Eric Hylton said of the indictment: “Laundering money from illegal activity such as illegal internet gambling is a crime. Regardless of how the money changes hands “ via cash, check, wire transfers or credit cards “ and regardless of where the money is stored “ in a United States financial institution or an offshore bank “ we will trace the funds. IRS Criminal Investigation will vigorously investigate and recommend prosecution against the owners and operators of these illegal enterprises to the fullest extent possible.”
The indictment follows an article published on CalvinAyre.com in mid-December last year, in which the reporter claimed: “The US department of Justice out of Baltimore is preparing to make a move against some US facing gambling company to coincide with the 2012 Super Bowl.”
The article went on to name Derrick Maloney, one of the indicted men, as a person of interest to the authorities, describing him as a “junior Lock Poker media buyer,” saying that he “doesn’t carry much influence in the gambling industry.”
Bodog UK chief executive Patrik Selin refused to comment when contacted by eGaming Review.
Bodog Europe is the shirt sponsor for Premier League football club West Bromwich Albion, while Bodog Brand sponsors Scottish first division club Ayr United. A spokesman for Ayr refused to comment when contactated by eGR.
Download the original indictment and seizure warrant here.
Calvin Ayre has released a statement to his news portal CalvinAyre.com, saying: “I see this as abuse of the US criminal justice system for the commercial gain of large US corporations. It is clear that the online gaming industry is legal under international law and in the case of these documents is it also clear that the rule of law was not allowed to slow down a rush to try to try to win the war of public opinion.”
He went on to say that Bodog’s European and Asian brands, and his charity the Calvin Ayre Foundation, will not be affected by the indictments.