Our friends in the Federal Prosecutors Office for the Southern District of New York (SDNY) are at it again. This is the same office which ordered the arrests of NETeller co-founders John LeFebvre and Stephen Lawrence in 2007. They also froze $55 million of NETeller funds.
What is the SDNY up to now? They have indicted a Canadian resident, Douglas Rennick, for money laundering, bank fraud, and operating an illegal gambling business. This last one is for supposedly processing payments for online casinos. According to the indictment, he has transferred more than $350 million from a bank in Cyprus to several U.S. banks to pay funds to gamblers in the U.S.
Douglas Rennick faces up to a total of 55 years in prison if convicted on all charges. The maximums are 30 years for the bank fraud, 20 years for the money laundering and 5 years for the gambling. He also faces fines of up to $1.75 million. The prosecutors are also trying to take $565,000 he allegedly made for processing the illegal online gambling transactions.
In opening the various bank accounts in several banks, he is accused of falsifying or hiding the true reasons the accounts were to be used for. The charges in this case are from an investigation begun in 2006.
You can read the Indictment here.