18-May-2010

Canadian Douglas Rennick, 34, pleaded guilty Tuesday to a U.S. federal charge that he illegally used wires to transfer online gambling funds to U.S. residents. Following Rennick’s guilty plea before U.S. Southern District of New York Judge Sidney Stein, prosecutors dropped additional charges of bank fraud and money laundering.

U.S. authorities indicted Rennick last August for illegally using U.S. bank accounts to funnel funds from offshore online casinos and poker sites to U.S. players. Rennick committed fraud, prosecutors charged, because he told the banks the corporations he had opened accounts for dealt in affiliate checks and automatic rebates.

The Unlawful Internet Gambling Enforcement Act of 2006 prohibits U.S. financial institutions from processing transactions between online gambling operators and U.S. residents. U.S. prosecutors said the banks would not have processed Rennick’s transactions had they known the money passing through his accounts came from offshore gambling operators.

Between 2007 and 2009 some $350 million passed from a bank account in Cyprus to the accounts of hundreds of U.S. residents through Rennick’s accounts. Prosecutors said Rennick had several accomplices, all of whom authorities have yet to identify.

As part of his plea bargain, Rennick agreed to forfeit $17.1 million. He could also face up to 12 months in prison under federal sentencing guidelines. Stein scheduled Rennick’s sentencing for September.

By: Phill Provance
phill.provance@acehoyle.com

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