Another Seizure Nets $1.5M From Online Gambling Payment Company

Gambling News - January 14th, 2010 - Written By Glen

In the second half of 2009, millions of dollars were seized by the federal government, most notably the U.S. District Court in Maryland, in correlation to payment processing related to online gambling. The last of ten bank account warrants had recently been returned, seizing an additional $1.5 million dollars from a payment processing business named HMD, Inc..

The most recent seizure makes the total confiscated in this series almost $4.3 million dollars. Electracash, Atrium Financial Group, and Forshay Enterprises were the payment processors to be hit prior to seizure against HMD, Inc..

Under pretexts of the Wire Act, the FBI had been investigating these payment processors due to their involvement with online casinos. It has been suggested that the Golden Casino network was directly involved with these payment processors.

After the seizures began, Golden Casino had announced its decision to pull out of the American market.

The Unlawful Internet Gambling Enforcement Act, or the UIGEA, had begun the build up in the persecution of online payment processors related to Online Gambling. The UIGEA had not been set for action until December of 2009, but a measure was taken in order to delay the incorporation of the UIGEA for six months.

Whether or not these seized assets will be returned is another question. Maryland U.S. Attorney's Office spokesperson Marcia Murphy stated that "civil forfeiture proceedings would be started." These proceedings are designed to allow the government to retain all of the money that had been taken in the seizures.