SDNY Indicts A Canadian Payment Processor

The acting U.S. Attorney for the SNDY Lev L. Dassin has filed an indictment against Douglas Rennick who now faces up to 55 years in jail and $1,750,000 fine.

Last month, the Southern
District of New York (SDNY) seized over $30 million online gaming funds (read more here) and now Lev L. Dassin, the acting U.S. Attorney for the SDNY has filed an indictment against Douglas Rennick for conspiracy to commit bank fraud, conspiracy to engage in money laundering and conspiracy to operate an illegal gambling business.

It is worth noting that one of Rennick's companies, Account Services
Corporation, was the only one to file a motion for the return of its
$13 million in funds since the original SDNY account seizures. The
company has requested the return of online poker players' property due
to SDNY failing to obtain proper warrants. The Poker Player Alliane
(PPA) has been granted the "friend of the court" status in order to assist with the case.

Rennick faces up to 55 years in jail

The indictment against Rennick spans across 13 pages, indicating that Rennick made payments on behalf of online companies for "different types of online gambling, including poker, blackjack, slot machines and other casino games." Rennick isn't accused of making any payments involving sports bets which could potentially help his case, as Greg Raymer (pictured right) commented:

"Casino games aren’t illegal under any federal law for online gambling sites, only sports betting."

Raymer also expressed doubts on the whole matter, saying that SDNY could've put Rennick in jail in the beginning if they really had aspirations for it, or they could've done that first rather than seized the money first, or they could've done it simultaneously - which is why the whole matter "doesn't smell right" to Raymer.

If convicted, Rennick could be sentenced to up to 30 years in prison and a $1 million fine on the bank fraud charge, 20 years in prison and a $500,000 fine on the money laundering charge and 5 years in prison and a $250,000 fine on the gambling charge. The indictment also requests a seizure of $565,908,288 in proceeds it claims Rennick obtained through the alleged activities.