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In the Sunday Times – Times Online
THE US Department of Justice has ordered the world’s biggest investment banks, accountants and law firms to hand over all e-mails, telephone records and papers connected with internet gaming firms as part of an investigation into illegal online gambling in America.
HSBC, Dresdner Kleinwort, Credit Suisse and Deutsche Bank are known to be among the banks that have been issued with subpoenas — official requests for information — as part of a worldwide hunt to build a case against those who benefited from illegal online gambling.
Britain has been the fundraising centre for many internet gambling companies, with a number of international operators listing their shares in London.
Fortunes were made by the founders of internet gaming stocks, including Party Gaming, 888.com and Betonsports.com, and advisers pocketed huge fees.
The Department of Justice first issued subpoenas in October, only days after George Bush sounded the death knell for America’s $6 billion (£3.2 billion) internet gambling industry by signing legislation banning all related transactions. But until now the investigation has been kept secret.
According to City sources, the subpoenas have continued to arrive over the past few weeks.
It is thought that some investors in online gambling companies, including Party Gaming and 888.com, have also been hit with requests for information.
One source said: “To say the situation is sensitive is the understatement of the decade. The problem is, even if you know you have done nothing wrong, you have no powers of resistance.”
He added: “You can quickly go from being a bystander to a target, so even if you are bomb- proof, you have to assume you are subject to hostility.”
The source went on: “The Department of Justice has taken a shotgun, not a rifle approach in relation to lots of gaming companies and has just asked everyone to hand over all the information they have.”
The request could force banks and other advisers or former advisers to the gambling companies to hand over hundreds of thousands of e-mails and files to American investigators.
Another City source familiar with the circumstances said: “There is no doubt at all that this situation is escalating. This has definitely got legs.”
Another source described it as one of the biggest “fishing expeditions” ever undertaken by the Department of Justice.
Vast riches were made by the founders of internet gambling companies, including Party Gaming and 888.com. Party Gaming floated with a value of £5 billion in the summer of 2005, propelling it straight into the FTSE 100 index ahead of British household names such as British Airways and ICI. Its four founder shareholders — Anurag Dikshit, Vikrant Bhargava, Ruth Parasol and her husband, Russ DeLeon — took out £797m and valued their remaining shares at about £ 3.3 billion. Meanwhile, 888.com, which floated in September 2005 valued at £590m, created another batch of dotcom millionaires, this time among the company’s Israeli founders. Avi and Aharon Shaked received more than £10m from selling a quarter of their 70% stake.
The probe by the Department of Justice will spark outrage in Britain, coming so soon after the extradition of the so-called NatWest Three to America.
UK plc should be really worried about yet another encroachment of American investigators on to British territory. The City is clearly under threat,” said one British businessman who asked not to be named.
The subpoenas do not reveal whom the Department of Justice is targeting. But some believe the ultimate goal is to find information incriminating the founders of the online gambling firms.
The inquiry vindicates the City professionals who refused to act for internet gambling firms because of the uncertainty about its legality in America. Banks that have been subpoenaed have lined up lawyers to act for them.
None of the banks involved would comment on the subpoenas. The Department of Justice also said that its policy was not to comment about ongoing investigations.
HSBC advised 888.com, one of the most high-profile internet gambling companies, on its flotation. Credit Suisse advised the original shareholders of 888.com on their strategic options before the flotation. Deutsche is co-broker to Party Gaming, while Dresdner advised on its public listing.
IT looks like (at this stage) they’re going after the operators …
However, that could just be the journo reporting on the high profile cases -who knows how deep this might get.
:bouncer:That is some crazy shit. Makes you wish you were never an American
We have less liberties by the day and the government just seems to want to take everything away, including how we spend the money we earn.Sad.
dang
no other words atm srry
This isn’t going to go on unchallenged much longer, friends.
Something big is coming… I promise.
(Now if I can just pull it all together)
This isn’t going to go on unchallenged much longer, friends.
Something big is coming… I promise.
Looking forward to the day!
While I understand everyones frustration and agree 100% that we have serious problems, I am an American. I am proud of my country. We fight for it and I have a son serving now. Yes, the United States has made mistakes for hundreds of years and will for hundreds more. The US has also done too many wonderful thing to mention. There are alot of great Americans and we have welcomed many refugees from suffering countries. The USA has aided many, many causes around the globe both governmentally and from private wealthy citizens.
I am starting to have a problem with some of the comments here. Maybe I am over sensitive with the USA bashing. Maybe I am naive but there is no denying my patriotism. 9/11 is still fresh in our minds and never forgotten. Along with alot of pain, it unfortunatly opened the doors for big brother mentality. We, the people, have spoken and Dems are taking control. It is a step in a long process. I saw the current administration chipping away at our freedoms. That is not acceptable and we have spoken. The American people are a strong lot.
I hope everyone thinks before they post. Some of us live here.
Thank you for letting me vent and sorry if I am over-reacting!
Sincerely,
PaulaI don’t see anyone attacking us as Americans or should I say American’ts, they are attacking the f’ed up gov we have here and as they should our gov has turned us into a laughing stock to other countries and I for one hope the folks in the UK tell the DOJ to screw off and not turn crap over to them.
I love all the men in uniform as well but I will voice my thoughts on this messed up law, it does not mean I am less of an American for doing so, and I have not thougtht anyone on cap has it out for us we are all a community and stand together that is what is needed now more then ever!
J Todd whatcha gonna do, huh huh… can I help:woo-hoo:
mojo wrote:…I am an American. I am proud of my country. We fight for it and I have a son serving now. Yes, the United States has made mistakes for hundreds of years and will for hundreds more.I can only speak for myself when I say that you must recognize the difference between the incredible people who make up this great nation of innovators and free thinkers, and the oppressive jackasses running the government they live under. The people sitting in Washington, DC are the ones using 9/11 to rape us of our freedoms systematically.
I remember with vivid detail the events of 2001, and I cry for and pray for the brave brothers and sisters I have overseas putting their lives on the line so I can sleep at night… but it sickens me to the soul to think that one more will die so that a politician can sit on their fat ass and ruin this nation.
mojo wrote:…I am starting to have a problem with some of the comments here. Maybe I am over sensitive with the USA bashing….I hope everyone thinks before they post. Some of us live here.Yea, I do too. And there are few things more patriotic than fighting the tyrany of an oppresive government. This is an importatnt time in our history. I for one will not sit by and watch the nation get flushed down the crapper so some jerk politician can send our children off to die while we sit home and watch them tear down the country they’re over there dying to protect.
mojo wrote:…The American people are a strong lot.I hope so, Paula. Because we’re gonna need to be strong and united to win this one. This is so much bigger than online gambling.
I was speaking to this by kwblue.
Makes you wish you were never an American
But thank you for the comments and I will look them over.
Paula
mojo wrote:Thank you for letting me vent and sorry if I am over-reacting!Taken at face value you’re not over-reacting …
But that’s one of the issues with forums – members post hurredly – in the heat of an emotion – and then people will come along later and read them in the cold light of day and read them differently.
It’s a specialist board – so the comments should be taken with a grain of salt – and always remembering that people are talking about a very small slice of life … specifically online gambling and tax bases … but it can also be seen as the “thin end of the wedge”.
However, for some affiliates this is a livelihood that you are talking about – and so emotions can and will be strong. Your post asking for restraint was a good way of getting people to think twice before posting emotional, irrational, posts …
:lookarounBut you’ve got to admit the whole FED policy to online gambling, online payments, is out-of-whack with deep vested (and corrupt) interests …
:crazy:I was speaking to this by kwblue.
I know you were.
I understand you being taken back by the comment…
And I understand his frustrations…
I think he was speaking from a deep rooted pain at what we see going on in America today. The thought of picking up and moving to another country has crossed my mind on more than one occasion, but I have decided to stay and rage against the machine, so to speak.
And in doing so, I put myself in great jeapordy. What’s that say about the American government?
I truly can believe that they have not yet arrested any of these online poker pros eg full tilt and celebrities who advertise that they play and endorse playing online. Imagine the press for such an event as tossing a couple dozen + well known names into the clink. The impact would be much greater than grabbing a couple relatively unknown industry founders. I believe the future most likely holds something along those lines.
Thank you for your comments. It’s difficult to reply all at once. First, I am relying on my affiliate wages as well. That does not mean I will turn my back on my Country. If online gambling is a casualty of all that is going on, so be it. What is most important is stopping the 21,000 troops deported. I am looking at the big picture and the important things at the House is not online gambling at the moment.
I can only speak for myself when I say that you must recognize the difference between the incredible people who make up this great nation of innovators and free thinkers, and the oppressive jackasses running the government they live under. The people sitting in Washington, DC are the ones using 9/11 to rape us of our freedoms systematically.
I remember with vivid detail the events of 2001, and I cry for and pray for the brave brothers and sisters I have overseas putting their lives on the line so I can sleep at night… but it sickens me to the soul to think that one more will die so that a politician can sit on their fat ass and ruin this nation.
Hi JTodd,
Forgive me but this is saying you have no faith in us!Paula
