Canadian Pleads Guilty in US Online Gambling Case
A Canadian who acted as a payments processor for offshore online poker sites in the US market pled guilty in a Manhattan court this week.
Douglas Rennick is reportedly cooperating with federal attorneys which means that his sentence could be as little as 12 months, compared to the many years incarceration he faced had he been found guilty for money laundering and other more serious charges.
Rennick's case first came to light when the Manhattan US Attorney's Office froze millions of dollars in fund that were earmarked for 14,000 poker players in the United States.
About half of the money in question was found in an account owned by Rennick's company, Wells Fargo.
Under the plea bargain, Rennick has had to forgo the funds that were seized, and also faces an additional fine.
He admitted in the court this week: "I had a business that transferred money from offshore gaming sites to American players within the Southern District of New York."
In August, Rennick was indicted for bank fraud conspiracy, money laundering and gambling conspiracy. He faced up to 55 years in jail on these charges.
An indictment against the Canadian read: "Rennick did not disclose to Washington Mutual Bank that KJB Financial Corporation would process payments from internet gambling companies. Instead, Rennick falsely and misleadingly represented that his company would issue checks" for other reasons, including rebates, refunds, sponsorships and affiliates.
