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Online Bookie Bust Finds Ties to Washington Baseball Scout
November 15, 2006 12:39 PM
An Internet gambling corporation was shut down and 27 individuals, including a major league baseball scout, were indicted in New York City today in a $3.3 billion online gaming bust.
The operation "Playwithal Sportsbook" employed 2,000 bookies across the nation, according to New York police officials, who said it was the largest sports betting operation ever shut down by the NYPD.
The ring serviced more than 40,000 bettors and took bets on horses, football, baseball, NASCAR racing and even PGA golf and professional tennis.
The bets were placed through the site, www.playwithal.com.
The operation also had offshore elements in St. Maarten and Costa Rica and maintained shell corporations and bank accounts in Switzerland and Hong Kong.
"We found that the head of this organization, James Giordano, had assembled over 2,000 bookies," Police Commissioner Raymond Kelly said.
Officials said Washington Nationals baseball scout Frank Falzarano worked for the organization and was among those indicted by the Queens County, N.Y. district attorney.
Under the scheme, officials say, the bookies brought several thousand dollars a week in betting proceeds to the top members of the ring who each cleared more than a half million dollars a week.
The bets were collected in cash after which the bookies sent their betting sheets to the ring leaders through the secure website.
To infiltrate the ring, the NYPD actually cloned the secure website, allowing detectives to track each key stroke and follow each move the ring made.
"It was the first time we'd done anything like that," Inspector Brian O'Neill of the Organized Crime Bureau said.
Later, when their betting site had been hacked by Russian organized crime, the ring added security, and police were forced to break into Giordano's hotel room while he was traveling to re-clone the drive.
Giordano, a nationally ranked poker player, lived in a walled compound in Florida. The walls were scaled Tuesday by the FBI.
"This is the largest illegal gambling operation we have ever encountered," Police Commissioner Kelly said.
District Attorney Richard Brown charged the top 27 members of the ring and the three web companies with Enterprise Corruption.
"The 27 individual dependents and the three corporations [that built the secure website] are charged also with money laundering," Brown said.
The 28-month investigation showed that the ring leaders kept about 60 percent of the $3.3 billion in revenue over the duration of the investigation.
"Internet gambling has been compared to the crack cocaine epidemic of the 80s," Brown said. "You click your mouse; you lose your house."
There was no immediate comment from Major League Baseball or the Washington Nationals team.
November 15, 2006 | Permalink | User Comments (7)
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I think an investigation into Reid's involvement should be very interesting. It should be paramount in finding out any of these politicos who were "on the take" and they should be ousted from any office they occupy-either
Dems or Republicans...ALL should go when shown to be involved in this payola, and we should not keep criminals in office any longer.
Posted by: Jo | Nov 15, 2006 2:22:52 PM
"You click your mouse; you lose your house." . This is a gross exageration. If it were true people would be losing their homes in Vegas and Atlantic City. The bottom line is if you find something that is fun there is bound to be some anal screw in Washington that will try to keep you from doing it (unless they can line their own pockets). The government is missing out on on-line gambling. People are going to do it so why not profir through taxes? It is big brother wanting to control everything. Another example of why the world hates the U.S. more and more every day. It isn't anything you or I do, it is the people in Washington.
Posted by: Howzilla | Nov 15, 2006 4:57:37 PM
amen brother....agree with you 100%...just another example of idiot politicians trying to show that they're actually doing something....passing a law that couldn't get passed on it's own so they secretly attach it to a piece of unrelated legislation that they know will pass....that's the truly sickening part, the way the law got passed....the fact that there isn't more uproar about this shows just how complacent the american public is....nobody cares
is anybody else out there sick and tired of the US govt telling its citizens how to spend its money??? telling us what is good and/or bad for us??? using their hypocritical, moral superiority and self righteousness to pass judgment on what we do in our free time?? this whole thing is a typical disgusting display of what is wrong with the US govt and why the rest of the world hates our guts...
..quite frankly i can't blame them.....
Posted by: mike | Nov 15, 2006 5:31:19 PM
The problem with all these laws is that they do not address personal responsibility. If a person is a compulsive gambler, THEY need to seek help to curb their situation. A law on the books means nothing to someone who is addicted to anything. By enacting these kind of laws, you are taking away a source of entertainment for people that gamble responsibility and are creating an unsafe black market that attracts unsavory gaming companies. If they really cared about the people they say they are "saving from themselves" they would create a regulated online gaming environment,mandate a certain of proceeds go to help problems gamblers and also let companies operate from the US. I seriously doubt this will happen anytime soon. The US is too prohibition happy.
Posted by: D | Nov 16, 2006 4:14:44 AM
i am a gambler who has lost thousands and owe to the play with al wonder if im off the hook?
Posted by: phil | Nov 16, 2006 9:10:13 PM
Once again the government passes a piece of paternalistic legislation under the guise of it being better for the average citizen. Reality is that with most if not all of the online betting sites going offshore the government couldn't get a piece of the action through taxes. They responded by trying to destroy it all together. We have a record deficit and these knuckleheads want to get rid of a potential revenue source of billions of dollars. No wonder Social Security is nearly bankrupt. We elect these idiots. We can vote them out!
Posted by: dave | Nov 30, 2006 5:26:28 AM
blog entries like this make me wonder. the blog entries i like to read typically tie up the story or ramblings of the writer into a definitive meaningful point....
Posted by: Compound | Jul 17, 2008 12:08:11 AM
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