Absolute Poker co-founder, Brent Beckley, has pleaded guilty to the charges of conspiracy to commit bank fraud and wire fraud, among other internet gambling-related offences.
Although the Unlawful Internet Gambling Enforcement Act, which came into effect in 2006, prohibited the knowing acceptance of proceeds made from gambling, Beckley continued to oversee financial transactions for Absolute Poker as the Head of Payment Processing.
Absolute Poker was one of the few online gambling companies that continued to operate in the United States following the passing of the Act. As banks would not process transactions related to internet gambling, it is alleged that Absolute Poker used fraudulent means to avoid these restrictions, receiving tens of millions of dollars from United States residents who gamble online.
Financial transactions from Absolute Poker were disguised on credit card statements as payments to and from various ‘shell companies’, such as flower shops and pet shops. Approximately 20 such phony companies have been uncovered.
Beckley issued his guilty plea in Manhattan Federal Court on December 20th 2011, telling U.S. Magistrate Judge Ronald Ellis: “I knew it was illegal to deceive the banks in this way”. He has accepted a plea deal, which would see him go to prison for 12 – 18 months as opposed to the 30 year maximum sentence that he would otherwise face. Sentencing will take place on April 19th 2012. Ten other defendants face more severe charges and have yet to enter pleas.
