Multimillion dollar sports betting ring busted in Queens

Multimillion dollar sports betting ring busted in Queens

  October 25, 2012    Dapper_Don

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Twenty-five individuals—including three owners of a sports betting Internet website—have been indicted in five states on charges of operating an illegal sports betting enterprise in Queens County and elsewhere that profited by more than $50 million during an 18-month period by accepting wagers on various sporting events—including horse-racing and professional and college football, basketball, hockey, and baseball. In addition, dozens of search warrants and asset seizure warrants were executed in multiple jurisdictions in New York, New Jersey, Pennsylvania, Nevada, and California, resulting, to date, in the seizure of real property and more than $7.6 million in cash and gambling chips.

The arrests and/or warrants were carried out by the New York City Police Department’s Organized Crime Investigation Division, the FBI’s Asset Forfeiture Section, the Nevada Gaming Control Board, the New Jersey State Commission of Investigation, the Monmouth County (New Jersey) Prosecutor’s Office, the New Jersey State Attorney General’s Office, the Pennsylvania State Police, and the Los Angeles Police Department. Furthermore, the Office of Loretta E. Lynch, the United States Attorney for the Eastern District of New York, has filed asset forfeiture warrants against the defendants’ assets.
Eight defendants were arrested Wednesday and arraigned in Queens County Supreme Court inKewGardens. Seventeen additional defendants were arrested Wednesday inNew Jersey,Pennsylvania,Nevada, andCalifornia. The defendants are all charged with enterprise corruption—a violation of New York State’s Organized Crime Control Act—as well as being variously charged with promoting gambling, money laundering, and conspiracy. They each face up to 25 years in prison if convicted.
Queens District Attorney Richard Brown said that the investigation leading to the indictment began in February 2011 when NYPD Organized Crime Investigation Division detectives developed information about an illegal sports betting operation and began a joint investigation with the District Attorney’s Organized Crime and Rackets Bureau. The investigation included physical surveillance, intelligence information, and court-authorized electronic eavesdropping.
According to the indictment, between April 13, 2011 and Oct. 18, 2012, the defendants conspired to acquire money illegally through the operation of an unlawful gambling enterprise involving the use of Internet websites that accepted bets on sporting events.
The indictment also alleges that the ring used non-traditional “wire rooms” in the form of off-shore, Internet-based gambling services—such as www.pinnaclesports.com, www.jazzsports.net/com, www.wager4you.com, and www.playhera.ag—used by bettors and agents to actually place their wagers. It is alleged that the members of the enterprise used the off-shore wire rooms to maintain the gambling accounts of numerous agents through the Internet website in an effort to evade law enforcement detection through traditional methods.
Law enforcement crackdowns on traditional mob-run wire rooms have led to the use by illegal gambling rings of off-shore gambling websites where action is available around the clock. Bettors can click on an off-shore gambling website over the Internet and be assigned individual login codes and passwords. Their wagers and win-loss amounts are recorded in “sub-accounts” maintained in the accounts of “agents.” These gambling websites typically store their information on computer servers outside theUnited States—such as inCosta RicaandPanama—and “bounce” their data through a series of server nodes in an effort to evade law enforcement.
The indictment charges that at least 15 of the defendants were “bookmakers”—Daniel Monreal and Pinnacle Sports owners Stanley Tomchin and George Molsbarger in California; Steven Diano, Jerald Branca, Kelly Barsel, Joseph Paulk, and Pinnacle Sports owner Brandt England in Las Vegas; Andrew Belardino, Michael Duong, and Gadoon Kyrollos in New Jersey; and Vincent Basciano, Jr., Edward Cappucci, Edward Iazzetti, and John Tognino in New York. These bookmakers were allegedly responsible for overseeing “agents”—such as Thomas Chiantese inNew JerseyandPennsylvania; Joseph Kornreich inNew York; and Ian Mandell and Michael Colbert inLas Vegas—whose jobs allegedly were to build a clientele of bettors who would regularly bet with the enterprise. It is alleged that the agents were the intermediaries between the bettor and the enterprise itself and were responsible for “squaring up” or “settling up” with the bettors—usually on a designated day each week—by collecting and paying out money owed.
According to the indictment, the enterprise also employed “money collectors,” “money distributors,” and “banks”—such as Paul Sexton in Las Vegas; Flora Wu and Daniel Bornico in New York; and Danny Belardino and Christian Rodriguez in New York and New Jersey—to handle the illegal flow of money between the participants of the enterprise. These individuals were allegedly responsible for the collection and distribution of illegal gambling proceeds between the bookmakers and the agents. They also allegedly transported money throughout theUnited Statesand to and fromPanamaand/orCosta Ricavia courier. It is additionally alleged that the money collectors and distributors that acted as banks were responsible for holding large amounts of money for the operation. Bookmaking enterprises use money collectors, distributors, and banks to avoid wire transfers and credit card transactions, which are prohibited by federal law for the payment and collection of gambling debts.
Alleged Bookmakers (15 Defendants)
Kelly Barsel, 42, of 9400 Tournament Canyon Drive in Las Vegas,Nevada, is charged with enterprise corruption; fourth-, third-, second- and first-degree money laundering; and fifth-degree conspiracy.
Vincent Basciano Jr., JR., 31, of732 Wilcox Ave., Bronx, is charged with enterprise corruption, first-degree money laundering, first-degree promoting gambling, and fifth-degree conspiracy.
Andrew Belardino, 50, of 30 Ridgeview Way in Allentown, NJ,  is charged with enterprise corruption; fourth-, third-, second- and first-degree money laundering; first-degree promoting gambling; and fifth-degree conspiracy.
Jerald Brancha, 67, of 5415 West Harmon Ave., Las Vegas,Nevada, is charged with enterprise corruption; fourth-, third-, second- and first-degree money laundering; and fifth-degree conspiracy.
Steven Diano, 48 of 6464 Tara Ave., Las Vegas, Nevada, is charged with enterprise corruption; fourth-, third-, second-, and first-degree money laundering; and fifth-degree conspiracy.
Michael Duong, 36, of 30 Smock Court, Manalapan, NJ, and 147-27 72nd Ave., Flushing, Queens, is charged with enterprise corruption, second- and first-degree money laundering, first-degree promoting gambling, and fifth-degree conspiracy.
BrandtEngland, 46, of 2817 High Sail Court, Las Vegas, Nevada, is charged with enterprise corruption; fourth-, third-, second-, and first-degree money laundering; first-degree promoting gambling; fourth-degree conspiracy; and fifth-degree conspiracy.Englandis an owner of Pinnacle Sports, an online sports gambling website.
Edward Iazetti, 55, of 1103 Rhinelander Ave., Bronx, is charged with enterprise corruption, first-degree promoting gambling, fourth- and first-degree money laundering, and fifth-degree conspi racy.
Gadroon Kyrollos, 34, of 12 Autumn Lane, Freehold, NJ, is charged with enterprise corruption; fourth-, third-, second-, and first-degree money laundering; first-degree promoting gambling; fourth-degree conspiracy; and fifth-degree conspiracy.
Thomas Lacerra, 73, of 685 Sheldon Ave., Staten Island, is charged with enterprise corruption; fourth-, third-, and first-degree money laundering; and fifth-degree conspiracy.
George Molsbarger, 66, of 603 Ocean Ave., Santa Monica, Calif., is charged with enterprise corruption; fourth- third-, second-, and first-degree money laundering; and fifth-degree conspiracy. Molsbarger is an owner of Pinnacle Sports, an online sports gambling website.
Daniel Monreal, 61, of 1521 Stonewood Court, San Pedro,Calif., is charged with enterprise corruption; third-, second, and first-degree money laundering; first-degree promoting gambling; and fifth- degree conspiracy.
Joseph Paulk, 35, of 3750 Las Vegas Blvd., Las Vegas, Nevada, is charged with enterprise corruption; fourth-, third-, second-, and first-degree money laundering; and fifth-degree conspiracy.
John Tognino, 70, of 3191 Ampere Ave., Bronx, is charged with enterprise corruption, fourth-, third-, second-, and first-degree money laundering; first-degree promoting gambling; and fifth-degree conspiracy.
Stanley Tomchin, 67, of 727 Lilac Dr.m Montecito, Calif. is charged with enterprise corruption; fourth-, third-, second-, and first-degree money laundering; and fifth-degree conspiracy. Tomchin is an owner of Pinnacle Sports, an online sports gambling website.
Alleged Money Collectors/Distributors/Banks (Five Defendants)
Daniel Belardino, 57, of 25-09 Rosalie St., Fair Lawn, NJ, is charged with enterprise corruption, fourth- and first-degree money laundering, first-degree promoting gambling, and fifth-degree conspi racy.
Daniel Bornico, 67, of 732 Naples Ave., Franklin Square,Long Island, is charged with enterprise corruption, fourth-, third-, and first-degree money laundering, first-degree promoting gambling, and fifth degree conspiracy.
Christian Rodriguez, 33, of 695 Arlington Dr., Old Bridge, NJ, is charged with enterprise corruption; fourth-, third-, second- and first-degree money laundering; and fifth-degree conspiracy.
Paul Sexton, 29, of 2708 Robust Court, Henderson, Nevada, is charged with enterprise corruption; fourth-, third-, second-, and first-degree money laundering; and fifth-degree conspiracy.
Flora Wu, 37, of 920 Union St., Brooklyn, is charged with enterprise corruption;fourth-, third-, and first-degree money laundering; and fifth-degree conspiracy
Alleged Money Collectors/Agents (Five Defendants)
Edward Cappucci, 69, of 78 Todt Hill, Staten Island,  is charged with enterprise corruption; third-, second-, and first-degree money laundering; and fifth-degree conspiracy.
Thomas Chiantese, 64, of 101-66 Verree Road,  Philadelphia, Pa., is charged with enterprise corruption, third- and first-degree money laundering, first-degree promoting gambling, and fifth- degree conspiracy.
Michael Colbert, 32, of 10098 Peak Lookout St. Las Vegas,Nevada, is charged with enterprise corruption; fourth-, third-, and first-degree money laundering; and fifth-degree conspiracy. Colbert is a vice president of Cantor Gaming, which operates seven sportsbooks inLas Vegas.
Joseph Kornreich, 60, of 21-15 80th St. in East Elmhurst, Queens, is charged with enterprise corruption, third- and first-degree money laundering, first-degree promoting gambling, and fifth-degree conspiracy.
Ian Madenll, 43, of 1885 Cape Cod Landing,  Las Vegas, Nevada, is charged with enterprise corruption; fourth-, third-, and first-degree money laundering; and fifth-degree conspiracy.   10-25-12

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