Legendz Sports Case Yields Millions in Fines for Law Enforcement Agencies

Legendz Sports, which ended up being accused by prosecutors of offering online and telephone gambling services almost exclusively to US gamblers, will forfeit profits in now a controversial ‘equitable sharing’ payout to law enforcement.

Legendz Sports’ illegal activities just helped police force agencies’ important thing in brand New York and Florida.

That’s because various agencies into the Empire and Sunshine states are to benefit from $9.6 million in forfeited criminal assets for their roles in breaking up the online gambling that is illegal ring.

Forty individuals were arrested in April 2013 for tasks associated with Legendz Sports, a company that handled over $1 billion in bets and managed a large network of offshore sports wagering internet sites.

Charges included racketeering, money-laundering, and wire fraudulence.

The situation began in Albany County, NY, with neighborhood police investigating two prison guards who have been suspected of acting as bookies for prisoners. After that, the investigation quickly distribute across the US, as FBI workplaces in Miami, Oklahoma, and Boston coordinated with the Albany County Sheriff’s office to intercept thousands of phone phone calls and emails that would lead to the eventually arrests.

The founder of Legendz Sports founder, Bartice ‘Luke’ King, from Oklahoma, is presently dealing with trial in Oklahoma City.

US Gamblers Targeted

Legendz sports, which was initially based in Costa Rica before relocating to Panama, and had been accused by investigators of offering Web and telephone gambling solutions almost exclusively to gamblers in the US.

The business allegedly utilized bookmakers located in the usa to ‘illegally solicit and accept activities wagers as well as settle gambling debts,’ prosecutors said.

The lion’s share regarding the confiscated funds, some $4.66 million, will head to the Albany County Sheriff’s Department, aided by the other $5 million to be split between three other local law enforcement agencies, along with the FBI and the IRS, prior to the policy of ‘equitable sharing.’

‘ In illegal gambling, money is both the real way the crime is committed plus the reason for committing it,’ said US Attorney Richard Hartunian. ‘Equitable sharing redirects these illegal proceeds toward the regional law enforcement agencies who assist their federal counterparts and United States attorneys to dismantle large-scale criminal enterprises like that one.’

Equitable Sharing Controversies

Equitable sharing just isn’t without its critics, and was frequently used to confiscate money from gamblers and from poker house games. A system that was open to abuse until very recently, it allowed state and local police to seize cash and property from detainees without the need for a warrant or criminal charge, and give the proceeds to federal agencies.

In April 2013, poker players William ‘Bart’ Davis and John Newmerzhycky were stopped by a traffic cop in Iowa, ostensibly for neglecting to take a look at a signal, although video surveillance within the patrol automobile later revealed that this was perhaps not the actual situation.

Police seized $100,000 in cash they found in the cars’ trunk, which represented all of the players’ poker bankrolls, and also a tiny quantity of marijuana. While the set eventually received $90,000 back of the $100,000 confiscated, they were forced to spend a large number of dollars in legal fees clearing their names.

Sheldon Adelson Wrongful Termination Lawsuit To Be Heard In US Court

Sheldon Adelson may face accusations of bribery and links to organized crime in a termination suit that is wrongful. (Image: Julie Jacobson/Associated Press)

Sheldon Adelson happens to be fighting tooth and nail to possess a wrongful termination suit dismissed.

It ended up being brought with a former employee and heard in Macau’s court system, while the case involved allegations against the Sands’ operations in the Chinese enclave.

However a judge has ruled that the case will instead be heard in Nevada, checking the chance that Adelson along with other Las Vegas Sands executives may need to respond to questions about allegations involving bribery and ties to organized crime in front of A american judge.

District Judge Elizabeth Gonzalez ruled on Friday that the case will be heard in Nevada, citing the legal maneuvering in the situation had all taken place in the us, making it only natural that the remainder of the situation should be dealt with here, too.

‘This matter has been pending in Nevada courts for almost five years,’ Gonzalez said when issuing her ruling. ‘Judicial economy is served by continuing this litigation in Nevada.’

Macau Courts Preferred by Sands

Solicitors for Las Vegas Sands had hoped that the case could be heard in Macau, where they thought that courts might limit exactly what could be mentioned in the way it is in a effort to protect the casino industry.

The business is still anticipated to allure the ruling in the hopes of changing the location.

It may be surprising to see this much posturing more than a wrongful termination situation.

Nevertheless, the in-patient bringing the suit is Steven Jacobs, the former executive that is chief of Sands’ operations in Macau, and the reason he says he was release may potentially cause serious issues for the business.

Based on Jacobs, Adelson himself authorized a payment of $700,000 in legal fees to Leonel Alves, a legislator and lawyer in Macau. Lawyers for the Sands said that the payments were well above standard rates, and that such a payment could break US laws that are anti-bribery.

On that advice, Jacobs ended the company’s dealings with Alves, blocking the payments. However, he alleges that Adelson then brought Alves back on.

Jacobs Alleges Ties to Triads

Other allegations paint an image of a company which had ties to crime that is organized Macau. According to Jacobs, he tried to distance the Sands from Macau’s triads, but could not get Adelson to go right along with it.

In specific, Adelson has said in early court appearances that his Macau casinos have actually ‘no direct relationship with Cheung Chi Tai,’ a leader of the Wo Hop To triad.

However, documents from the ongoing company show that Cheung ended up being part of contracts regarding junkets, the operations that help bring VIP clients to casinos.

Jacobs alleges that Adelson knew that Cheung had ties to organized crime, while Sands officials have said that they stopped doing business with Cheung as soon as they discovered out about his links to the triad.

Gonzalez’s ruling follows several days of hearings in late April and May that is early which Adelson himself testified.

Adelson’s testimony was especially combative, as he tried to avoid responding to concerns and sometimes contradicted testimony from other Sands executives.

At one point during his testimony, Adelson referred to Jacobs as ‘delusional,’ and said he was dismissed for incompetence.

In another instance, Adelson continued to argue with Judge Gonzalez him to answer a question about a 2009 email after she ordered.

‘Sir, you don’t get to argue with me,’ Gonzalez said to Adelson. ‘You recognize that?’

Operating Earnings Up for Surviving Atlantic City Casinos

Atlantic City’s staying casinos are posting much higher profits so far in 2015. (Image: AtlanticCityNJ.com)

Atlantic City could be bringing in less gambling revenue than in the past, but that doesn’t mean that the casinos there are suffering.

The eight staying casinos into the city reported that operating profits more than doubled in the quarter that is first of, suggesting that the consolidation of the industry there may simply be exercising.

As a whole, the eight surviving casinos made running profits of $81.3 million in the initial three months of 2015.

That was significantly more than double the $38.8 million they made in profits over that same period in 2014.

Casinos Healthy in Smaller Market

New Jersey Casino Control Commission Chairman Matthew Levinson touted the true numbers as proof that the Atlantic City casino industry is not in almost as bad shape as some observers claim.

‘ The key indicators show that the current operators continue to boost,’ said Levinson. ‘Gaming revenue is up, total revenue is up, web income is up, gross operating profits are up, resort occupancy rate is up and the average room rate is up.’

Overall, six of the eight casinos currently operating in Atlantic City showed a revenue on the quarter that is first. The 2 exceptions were the Trump Taj Mahal, which had been regarding the verge of shutting down year that is late last and Resorts Casino Hotel.

That compares favorably to final year, when 12 gambling enterprises operated for at part that is least of the quarter (the Atlantic Club shut straight down very early in 2014).

All of which have since been closed in that more crowded market, seven casinos posted losses, including the Atlantic Club, Revel, and Trump Plaza.

The profit figures are a reminder that it’s still not an easy task to measure the Atlantic City casino market by looking at revenues alone, particularly provided the number that is rapidly changing of in the city.

In April, profits were actually down for the remaining casinos (even after factoring in Internet gaming), mainly because Caesars had https://myfreepokies.com a especially good thirty days in April 2014 and could not repeat that success.

Borgata, Others Show Big Gains

But operating profits may provide a better indicator of an individual casino’s overall health, and many would argue it is really what ultimately matters for the city being a whole, too.

The figure represents exactly how money that is much casinos made both gaming and non-gaming revenue, along with the actual costs of operating those businesses, but don’t factor in interest, fees or depreciation of assets.

It comes as little surprise that the Borgata Hotel Casino & Spa, probably the most effective casino in modern Atlantic City, was the big winner when it found the quarterly report. The Borgata made $38.5 million on the first quarter, an 83 percent increase over last year.

Based on Borgata’s senior vice president of operations Joe Lupo, the Borgata surely could successfully grab a number that is large of gamblers who were previously patronizing the casinos that are now closed.

‘We aggressively reached away and the consumer base found Borgata to be considered a nice home,’ he told the Press of Atlantic City.

However, other casinos additionally saw dramatic modifications year over year. Both Bally’s and the Golden Nugget posted losses within the very first quarter of 2014, but made more than $4 million in earnings through the first three months of 2015.