The Power Of Digital Media
This week marked an important date for the world of online gambling and online payments. Yesterday we moved past the 270 day deadline created by the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). Tuesday was a 9 month deadline the US Treasury was given to issue regulations for the Unlawful Internet Gambling Enforcement Act (UIGEA). While the new regulations are not expected to be published today or even this week, we might just see them this summer. However, it could take much longer.
This week, is also the first time I’ve seen headlines like, Gambling Sites Named in Terrorist Money Laundering Allegations, which directly link terrorists with online gambling money.
Right after the 271st day….how is that for a coincidence? Headlines are just now appearing that link money laundering & terrorist funding with online poker,
“…alleged that one of the men, Tariq Al-Dour, laundered thousands of dollars through online gambling sites including AbsolutePoker, Betfair, BetonBet, Canbet, Eurobet, NoblePoker and ParadisePoker” *
I suppose my own catchy blog headline from February may have had some truth to it, Online Gambling & Terrorist Financing: America’s New “Poker Threat”. Too bad my attitude in the post was so slanted, I’ll be eating crow on that one, no doubt. Arg…..the power of digital media.
Also this week the US Secret Service busted a major ring of credit card crooks, making millions on stolen credit cards. (good job USSS) Although, I found it very unusual how many of those headlines included “e-gold”. While none of the indictments in this credit card case included ANY mention or information** regarding e-gold, the Secret Service did not miss the opportunity mention e-gold, in their press release.
This same press release spawned over two dozen other articles and blog posts about e-gold. It brought e-gold’s prosecution back into the headlines. That small press release mention created new headlines like this one, All that is e-gold does not glitter. Most of the other articles, such as this one, Feds Bust Credit Card Counterfeiting Ring, which were anchored by the information in that press release, rehash the current e-gold investigation with at least one or two paragraphs.
While its common place for politicians, spin doctors and ‘hachet job‘ novice video editors like myself, to use digital media in an basic attempt to influence the public, I believe it should be a rare occasion when government agencies (besides the CIA) use media in any attempt to influence a pending legal matter. Shouldn’t court cases, stay in court and stand or fall on the merits of the case? Well….that’s America for you….OJ walked, Paris went to jail. Digital media, is a powerful tool and we all use on some level to influence others.
**Resources for this post included a Washington post blog.
Update 7/12: Now this is a fair article, exact same event with more credible facts and information:
Secret Service Busts Four Fraudsters With Ties To T.J. Maxx Attack
“However, E-Gold chairman Douglas Jackson disputes these charges and asserts that his company first brought Blinky to the attention of law enforcement in March 2006. Jackson told InformationWeek that investigators working for E-Gold began monitoring Blinky pursuant to an undercover operation it was conducting with law-enforcement agents from the U.S., U.K., and Russia. “In May 2006, working with records supplied by an exchange service that had sold him some E-Gold, we were able to supply general location (Miami), three confirmed phone numbers he used, and the usual IP/timestamp combos that even in this day and age are often useful,” Jackson said.”
Update 7/13: Another good one showing yet another side to this story….
Who’s Fighting Identity Theft? You’d Be Surprised
Tags: doug-jackson, e-bullion, e-currency, e-gold, egold, GoldMoney, Safe-Ports-Act, WebMoney“But Douglas says it was his company that first brought Blinky to the attention of law enforcement in March 2006. Jackson told InformationWeek that investigators working for E-Gold began monitoring Blinky pursuant to an undercover operation it was conducting with law-enforcement agents from the U.S., U.K., and Russia.
“In May 2006, working with records supplied by an exchange service that had sold [Blinky] some e-gold, we were able to supply general location (Miami), three confirmed phone numbers he used, and the usual IP/timestamp combos that even in this day and age are often useful,” Jackson said. “In September 2006 we were able to set up a quasi-ambush where the guy was sent a Fed Ex package such that we were able to supply law enforcement with a specific physical location (a garage in Miami) and a time to nab him.”
Jackson sent me a copy of an e-mail exchange he claims to have had with a Secret Service contact in January 2006. In an e-mail Jackson ostensibly sent to the agency, he requested the Secret Service use information gathered by E-Gold investigators to crack down on a card-counterfeiting ring. An enthusiastic-sounding response from the agency informed Jackson his Secret Service liaison had made contact with “our guys at HQ and they will be in contact with you or your staff concerning this matter.” Jackson told me that E-Gold was later “rebuffed” by the Secret Service and doesn’t know if they followed up on the information he says he sent them.”
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POSTED IN: Online Gambling, Online Payments, e-gold
3 opinions for The Power Of Digital Media
TD
Jul 12, 2007 at 3:28 am
Yeah I was also watching all those news articles popping up via my google news alerts after that release. 0) Amazing 16 or so at last count.
Mark
Jul 14, 2007 at 8:42 am
There have been a number of recent media articles suggesting that terrorist offences concerning planned attacks in London in November 2005, for which Waseem Mughal and Younis Tsouli were convicted, involved money laundering through Betfair’s site. Indeed an individual was convicted for specific money laundering/fundraising offences, and the articles have suggested successful attempts to launder money through Betfair.
A number of attempts were made to use Betfair’s site fraudulently, but they were unsuccessful: they were identified; accounts were closed; and all relevant information was shared with the police. It is simply incorrect to say in respect of Betfair that “winnings were withdrawn and transferred to online bank accounts under their [the terrorists’] control”.
We worked with the police during this investigation, and continue to do so as necessary. We are pleased to have played our part in providing evidence to them.
We are prevented from disclosing anything further.
Notes to Editors:
1. Betfair has a money laundering team of four full time employees, headed by a former Detective Chief Inspector in the Serious & Economic Crime Directorate of the Metropolitan Police.
2. Betfair is compliant with the Proceeds of Crime Act and the soon-to-be-implemented EU Directive on money laundering.
For further information, please contact Mark Davies, +44 20 8834 8208
DoughFlow
Jul 15, 2007 at 1:15 pm
Scare mongering. False information. Who can say online gaming is safe, when terrorists are using these systems to launder funds? OMG! Give me a break.
Well, its the legislators who believe they are responsible for the morality of the populice and use the ‘terrorist card’ to try and silence any critics. If you were to speak out, you’d be branded as soft on terrorism.
There ARE safeguards for money laundering. There ARE checks and balances for the handling of electronic transfers. Online gaming is safe and controlled DESPITE the US government trying to shake it down.
Unfortunately, there are easier ways to launder funds for terrorists and the drug cartels. Too bad the moral majority fail to act in those circumstances and are short sighted in their actions.
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