Internet gambling payment processor faces charges

Canadian man faces decades in prison and multiple fines

The operator of several companies that allegedly processed more than $US350 million in illegal Internet gambling payments has been indicted on bank fraud and other offenses, the U.S. Department of Justice announced Thursday.

Douglas Rennick opened a number of bank accounts in the U.S. under various corporate names, between 2007 and June 2009, the DOJ said in a press release.

Canadian resident Rennick, 34, indicted Wednesday in U.S. District Court for the Southern District of New York, has been charged with one count each of conspiracy to commit bank fraud, conspiracy to engage in money laundering and conspiracy to operate an illegal gambling business.

If found guilty, Rennick faces a maximum term of 30 years in prison and a $US1 million fine on the bank fraud charge, 20 years in prison and a $US500,000 fine on the money laundering charge, and five years in prison and a $US250,000 fine on the gambling charge.

The indictment also seeks the forfeiture of about $US565.9 million, representing the amount Rennick allegedly obtained in the illegal gambling and bank fraud conspiracies.

Rennick opened bank accounts under several corporate names, including KJB Financial, Account Services and Check Payment Financial, the DOJ said.

He and co-conspirators falsely represented that the accounts would be used for such purposes as issuing rebate checks, refund checks, sponsorship checks, affiliate checks and minor payroll processing, the DOJ said.

Instead, Rennick and his co-conspirators used the accounts to receive funds from offshore Internet gambling companies that offered poker, blackjack, slots and other casino games.

Rennick and his co-conspirators then disbursed those funds by checks to U.S. residents seeking to cash out their gambling winnings, the DOJ said.

Rennick and his co-conspirators provided false information to U.S. banks about the purpose of the accounts, as processing Internet gambling checks is illegal in the U.S., the DOJ said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags gamblinglegalpayment gateways

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?