Today the bank Ahmad Khawaja and his two firms Allied Systems and Allied Wallet reportedly used to transfer funds to players online poker sites, as agree to forfeit assets. Goldwater Bank, a one branch bank located in Scottsdale Arizona as agreed to forfeit $734,000 that have been tied to money laundering and illegal online gambling operations according to the FBI.
Goldwater Bank has denied any knowledge of illegal transactions involving offshore gambling sites yet have been sited under the Unlawful Internet Gambling Enforcement Act (UIGEA). Janice Fedarcyk, the FBI’s Assistant Director, said in a statement:
“Although Goldwater Bank denies guilty knowledge of its role in facilitating an illegal online gambling business, it was paid to execute transactions that were essential to the operation of this criminal enterprise. The forfeiture settlement means the bank won’t profit by providing this service.”
Goldwater Bank was one of the banks that has received Troubled Asset Relief Program (TARP) funding and if it is found that they were aware of the transactions being online gambling related, they could lose all future funding.
TARP Special Inspector General Neil Barofsky has stated:
“Today’s charges and settlement should send a powerful message to TARP recipients that they will be held strictly accountable for any misdeeds while they stand as custodians of taxpayer dollars. SIGTARP commends the leadership of the U.S. Attorney for the Southern District of New York for his continued use of both civil and criminal remedies to protect taxpayer interests.”