Tzvetkoff’s Bail Revoked

Submitted by Evan on Thu, 2010-04-29 at 19:31

Online casino payment processor Daniel Tzvetkoff, who was arrested and charged with accepting payment from online casino players from the US, has been denied bail after being deemed a flight risk. Tzvetkoff’s arrest was part of a sting meant to warn online casino operators and other payment processing companies that the UIGEA (Unlawful Internet Gambling Enforcement Act) is still in effect and is being enforced.

Among the charges against Tzvetkoff were money laundering, conspiracy and bank fraud. Online casino players complained to authorities about their missing deposits and that was what started the investigation against him. Initially, bail was set but the judge soon revoked it when it became clear that he had millions of dollars stashed in an offshore bank account.

If he is found guilty of the charges against him, Tzvetkoff faces up to 75 years in prison. He was able to disguise the online casino payments as loans which is why it took authorities several years to catch onto his scams. Both of his companies haemorrhaged money which ended up in his embezzling funds from his clients.

The UIGEA has banned all payment processing between online casinos and US players. There is a hearing scheduled in June of 2010 which will determine if the UIGEA will remain in effect or if online gambling will be legalized in the US.