Posted on 01/21/2007 5:10:39 AM PST by seacapn
THE US Department of Justice has ordered the world’s biggest investment banks, accountants and law firms to hand over all e-mails, telephone records and papers connected with internet gaming firms as part of an investigation into illegal online gambling in America.
HSBC, Dresdner Kleinwort, Credit Suisse and Deutsche Bank are known to be among the banks that have been issued with subpoenas — official requests for information — as part of a worldwide hunt to build a case against those who benefited from illegal online gambling.
Britain has been the fundraising centre for many internet gambling companies, with a number of international operators listing their shares in London.
(Excerpt) Read more at timesonline.co.uk ...
From the article:
The source went on: “The Department of Justice has taken a shotgun, not a rifle approach in relation to lots of gaming companies and has just asked everyone to hand over all the information they have.”
These aren't even gambling firms - these are BANKS!
I don't know what else to say, except that I sure hope these targeted banks fight back hard, and tie this thing up in litigation for years, forcing the Justice Department or whoever else is involved in this debacle to spend tens of millions of dollars. Maybe then the absurdity of this whole sham will be widely exposed.
I have no issue with gambling.
But, unfortunately gambling is used to launder money.
So if leads in investigations are being followed, banks can and will be investigated due to connections.
"Money laundering" is one of those made-up economic crimes socialists use to justify being busybodies. The US Justice Department has no business investigating financial institutions that are out of its jurisdiction.
We richly deserve every bit of blowback that comes out of this.
I don't think it is a made-up economic crimes.
Terrorists at Casinos
Hijackers' Tracks in Las Vegas
Gambling Strip Combed for Evidence of Several Terrorists
LAS VEGAS -- Additional FBI agents are being brought to this city to chase down hundreds of leads and track the movements of terrorists who repeatedly visited here in the months before the Sept. 11 attacks. Mohamed Atta, a suspected ringleader of the terrorist attack that left more than 5,000 people dead, made at least two trips here. In addition to Atta, authorities also believe that Marwan Al-Shehhi, Nawaf Alhazmi, Hani Hanjour and Ziad Samir Jarrah also visited the city. All five men were killed in the attacks in New York and Washington.
By William Booth Washington Post Staff Writer 9/14/01
Terrorists had no apparent reason to visit Las Vegas ...
So why did they?
On June 28 at BostonÕs Logan Airport, Mohamed Atta boarded a United Airlines flight and flew first class nonstop to San Francisco, where he bypassed the bohemian North Beach district and didnÕt take the cruise to Alcatraz. Instead, Atta took the first of two side trips to Las Vegas.
On Aug. 10, Hani Hanjour and Nawaf Alhazmi used first-class tickets for a United flight from Dulles Airport near Washington, D.C., to Los Angeles International Airport, then on to Las Vegas. Las Vegas FBI Special Agent in Charge Grant Ashley candidly admitted that the whole story of the terroristsÕ Las Vegas connection may never be known. Authorities on the hijackersÕ sponsor, Osama bin Laden, note that counterfeiting has been one of the al-Qaida terrorist network's signatures. Were the hijackers passing off funny money? Spies and arms dealers have made this a second home for more than a generation.
11/4/01 Las Vegas Review-Journal COLUMN: John L. Smith
SunCruz Casinos turns over documents in terrorist probe
TAMPA, Fla. - SunCruz Casinos has turned over photographs and other documents to FBI investigators after employees said they recognized some of the men suspected in the terrorist attacks as customers.
Michael Hlavsa, chairman of the gambling cruise company, said Wednesday two or three men linked to the Sept. 11 hijackings may have been customers on a ship that sailed from Madeira Beach on Florida's gulf coast.
9/26/01 By VICKIE CHACHERE Associated Press Writer and Florida Times-Union
Terror suspects spent $100,000 in casino scam
Buffalo duo likely tried to launder cash
HAMILTON — Two members of an alleged Al Qaeda cell arrested in Buffalo last week spent at least $100,000 (U.S.) at Casino Niagara in what Ontario officials suspect were money-laundering attempts. Federal prosecutors in Buffalo, where the American-born suspects are in a bail hearing this week, have painted the men as wily members of an Al Qaeda "sleeper" cell, based in the suburb of Lackawanna. American anti-terrorism officials allege that some of the men seem to have secret sources of funds, the type of money needed to carry out acts of Al Qaeda terrorism on U.S. soil. "Terrorists will take full advantage of whatever means they can," said David Harris, an anti-terrorism consultant in Ottawa. "They know the art and science of laundering money. Casinos are just another avenue for that."
Thestar.com Toronto star 9/20/02 By Joan Walters
Treasury Department to require casinos to report
suspicious transactions
Casinos will have to file reports on suspicious financial transactions to the federal government as part of the Bush administration's effort to catch drug dealers, terrorists and others involved in money laundering. The rule announced Wednesday by the Treasury Department takes effect in six months and would apply to casinos located in the United States with gross annual revenues of more than $1 million. Identifying suspicious transactions is a difficult task for several reasons, including "the fast-paced casino environment, with lots of games going on and lots of customers."
Money laundering involves the movement of profits from drug or arms trafficking, political corruption, prostitution and other illegal activities through a series of accounts or businesses to disguise them as proceeds of legitimate business. Treasury's General Counsel David Aufhauser said Wednesday's rules and proposals are aimed at snagging money launderers and terrorist financiers.
JEANNINE AVERSA, 9/18/02 (WASHINGTON (AP) customwire.ap.org/dynamic/fronts/ARCHIVE
Casinos targeted in hunt for illegal immigrants
Northern Nevada casinos, with their large numbers of foreign-born workers, have been the targets of federal government searches for illegal immigrants. ÒIt continues to be a fairly big problem,Ó said Gregory White, an agent in the Reno office of the U.S. Immigration and Naturalization Service.
In 1994, immigration agents removed about 1,400 undocumented workers from 46 northern Nevada casinos.
Don Cox RENO GAZETTE-JOURNAL 3/2/02
Las Vegas, Reno could be terrorism targets
Last week Las Vegas FBI chief Grant Ashley told reporters the FBI may never know what the hijackers were doing here. A member of the NevadaÕs Homeland Security Committee said Wednesday in Carson City that he felt Las Vegas and Reno would be good targets for any type of terrorist attack because of the citiesÕ 24-hour lifestyle. "It makes them more vulnerable," said Richard Brenner, fire protection engineer of Las Vegas' Clark County Fire Department. "We are both 24-hour cities. We really don't go to sleep."
Ray Hagar RENO GAZETTE-JOURNAL 12/12/2001
The House Financial Services Committee on Thursday passed the Financial Anti-Terrorism Act, a bill containing language designed to quash Internet gambling. The bill states that "no person engaged in the business of betting or wagering may knowingly accept, in connection with the participation of another person in unlawful Internet gambling," such financial instruments as checks, credit cards or electronic fund transfers. Rep. James Leach, R-Iowa, called the effort against Internet gambling critical in the battle against terrorism. "Internet gambling (poses) the greatest potential for money laundering that exists in the world," Leach said. The bill is designed to crack down on money laundering efforts by terrorist organizations.
10/12/02 By David Strow and Benjamin Grove LAS VEGAS SUN
Another American law enforcement official, speaking on condition of anonymity, said that investigators also are probing the possibility that some of the individuals sneaked into the United States by way of the Akwesasne Mohawk Reserve, which straddles the borders of Ontario, Quebec, and New York State. For years, the reserve has been a notorious smuggling route, serving as a conduit for illegal immigrants bound for the United States and for contraband goods, mainly cigarettes and alcohol, headed for Canada to avoid heavy US taxes. Indians with ties to biker gangs and organized crime typically serve as well-paid guides through the dense brush and across the waterways of the reserve.
By Colin Nickerson, Globe Staff, 1/3/2003 MONTREAL
Akwesasne Mohawk Casino www.mohawkcasino.com/
"A person could launder money at a land-based casino easier than online where you have a complete paper trail even for small amounts," said Wayne Townsend, a Yucca Valley man who writes Internet gambling software.
By Benjamin Spillman The Desert Sun 10/12/02
>But, unfortunately gambling is used to launder money.
If the Justice Department has evidence that HSBC is involved with money laundering, let them present that evidence to a jusge and investigate on those grounds.
A SWAT team busts down your doors and starts systematically going through your house, searching for documents and guns. They confine you outside. When you ask them what is going on, they tell you, "You know, we don't have anything against guns, but unfortunately, some people use guns for robbery or terrorism. We're just checking you out. We're going to take all your guns down to our lab for a few months, and you need to turn over all records related to any fireamrs or ammunition purchases from the last 10 years."
Now, imagine that this wasn't even an American SWAT team - it was a European Union strike force.
I doubt that would go over very well with you. And I think you can understand how the Justice Department's absurd demands related to LEGAL BANKING ACTIVITIES in foreign countries won't go over very well, either.
It looks like the Justice Dept. does have evidence.
HSBC and Santander slammed in Senate money-laundering report
By Hugh O'Shaughnessy and Paul Lashmar
Published: 05 September 2004
Banco Santander Central Hispano, which is bidding for Abbey National, and HSBC, the UK's largest bank, have been slammed for lax money-laundering procedures in a report by a US Senate subcommittee.
Banco Santander Central Hispano, which is bidding for Abbey National, and HSBC, the UK's largest bank, have been slammed for lax money-laundering procedures in a report by a US Senate subcommittee.
The Spanish bank and the UK-based multinational stand accused of laxity in the fight against money laundering, drug trafficking, corruption and terrorism, notably in the oil-rich African state of Equatorial Guinea.
The flow of dirty money from the former Spanish colony has become a particular interest of the Senate's permanent subcommittee on investigations. It issued a fierce warning to the banks after concluding an inquiry into money laundering and corruption in the banking sector, focusing on the Washington DC-based Riggs Bank.
In one of the few occasions when Riggs seems to have properly followed US anti-money-laundering legislation, it formally asked Santander and HSBC Bank USA under section 314 of the Patriot Act to divulge the identities of the owners of two companies that kept accounts with them and that were receiving suspicious wire transfers totalling in excess of $35m (£20m). The banks refused to say who the owners were.
Between June and December 2000, the Madrid branch of Santander alone received more than $26.5m in 16 wire transfers from Equatorial Guinea's government oil account at the Riggs Bank in Washington for the account of Kalunga Company. Kalunga is thought to be wholly or partially owned by Teodoro Obiang Nguema, the Equatorial Guinean President.
Banco Santander in the US told the Senate investigators that its parent bank in Madrid had interpreted Spanish law to mean that it was barred from disclosing information on Kalunga not only to any third party, but also to its own subsidiary banks outside Spain. HSBC Bank USA took a similar position over money transfers to an account at HSBC Luxembourg in the name of another company believed to be linked to Mr Obiang.
"This bar on disclosure across international lines, even within the same financial institution, presents a significant obstacle to effective anti-money-laundering due diligence for banks operating in the United States, and a huge impediment to international efforts to stop money laundering, drug trafficking, and terrorism," the subcommittee declared.
Santander has denied any wrongdoing.
HSBC Bank USA says it has co-operated fully with the Senate investigation. "However, we are unable to provide information that our non-US affiliates solely possess. These affiliates, which are neither our branches or subsidiaries, are subject to the laws of the countries in which they operate."
The subcommittee called for rapid action in the US and EU to force banks to reveal more about their deposits.
Santander said last week that it was speeding up the timetable of its £8.1bn agreed offer for Abbey so it would be completed by the end of November. HBOS has said it is looking at a rival bid but has yet to make one.
Then let them investigate on those grounds. This investigation that is currently ongoing is a dragnet to get information about internet gambling - a legal activity in the UK.
>>>Then let them investigate on those grounds.
What makes you think they are not? From the few searches I did, it seems there are multiple issues from multiple directions.
Again, the wider point is that these activites are LEGAL in the countries of incorporation. Imagine if you were investigated for "illegal" firearms purchases under British law. You'd probably scoff, and rightfully so. The same principle is at work here. And as someone mentioned above, this type of trans-national overstretch opens the door to all kinds of absurdity.
The GOP are political geniuses.
For background:
'Triangulation' is the act of a candidate presenting his or her ideology as being "above" and "between" the left and right sides of the political spectrum. A related term is third way politics.
The GOP have taken 'triangulation' to a new level, which I call 'strangulation'.
'Strangulation' is the act of a GOP candidate presenting his or her idealogy as being "abhorrent" and "baffling" to the right side of the political spectrum. A related term is RINO politics.
New tagline.
Any article doesn't represent an entire investigation. And like I said, the few searches I did, shows your article is a tip of the iceberg.
I can't understand why you seem so upset about this.
Well, because we nominally live in "the land of the free." When the congress passes an internet gambling ban without debate at 3am shortly before the elections, then uses the investigative levers of government to persecute corporate executives who had followed the laws of their own countries (see, most recently, the Neteller arrests - and those guys ran a money transfer service, not a gambling site), then yes, we have a big problem with freedom, statism, and "putting our nose where it don't belong"
I can't understand how you aren't more upset by this whole series of events since September 2006.
Nice tagline, and very apt. The fact that the internet gambling ban has a horse-racing exemption exposes the cynical political fraud of it all. I was just dumbfounded when the Republican leadership pushed this measure through, and I do think it was a factor in many close congressional races last November.
Yes, certainly Sarbanes-Oxley has already had a chilling effect on companies looking for capital here in the U.S. Adding more regulatory headaches is not going to make us any more popular as a place to do business.
150 years ago, any bank that had global aspirations automatically thought of "London" as a place that you had to place your sign. Those days are long gone -- and if we keep on piling up the nonsense, the perceived essentiality of having a New York signplate will disappear also.
They are investigating illegal activity.
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