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Legendz Sports Case Yields Millions in Fines for Law Enforcement Agencies

Legendz Sports, which ended up being accused by prosecutors of offering online and telephone gambling services almost exclusively to US gamblers, will forfeit profits in now a controversial ‘equitable sharing’ payout to law enforcement.

Legendz Sports’ unlawful activities just helped police force agencies’ main point here in New York and Florida.

That’s because various agencies into the Empire and Sunshine states are to benefit from $9.6 million in forfeited criminal assets for their roles in breaking up the online gambling that is illegal ring.

Forty individuals were arrested in April 2013 for activities regarding Legendz Sports, a company that handled over $1 billion in bets and managed a network that is large of sports betting internet sites.

Charges included racketeering, money-laundering, and wire fraudulence.

The case began in Albany County, NY, with local authorities investigating two prison guards who had been suspected of acting as bookies for prisoners. From there, the research quickly spread across the US, as FBI workplaces in Miami, Oklahoma, and Boston coordinated with the Albany County Sheriff’s office to intercept thousands of telephone phone calls and emails that would eventually induce the arrests.

The founder of Legendz Sports founder, Bartice ‘Luke’ King, from Oklahoma, is currently dealing with trial in Oklahoma City.

US Gamblers Targeted

Legendz sports, that was initially based in Costa Rica before relocating to Panama, and was accused by investigators of offering online and telephone gambling services almost exclusively to gamblers in america.

The company allegedly used bookmakers located in the usa to ‘illegally solicit and accept sports wagers along with settle gambling debts,’ prosecutors said.

The lion’s share for the confiscated funds, some $4.66 million, will head to the Albany County Sheriff’s Department, because of the other $5 million to be split between three other law that is local agencies, along with the FBI and the IRS, relative to the insurance policy of ‘equitable sharing.’

‘ In illegal gambling, money is both the real way the crime is committed while the reason for committing it,’ said US Attorney Richard Hartunian. ‘Equitable sharing redirects these illegal proceeds toward the law that is local agencies who use their federal counterparts and United States attorneys to dismantle large-scale unlawful enterprises like this one.’

Equitable Sharing Controversies

Equitable sharing isn’t without its experts, and happens to be frequently used to confiscate money from gamblers and from poker home games. Until very recently, it allowed state and local police to seize cash and property from detainees with no need for a warrant or criminal charge, and give the profits to federal agencies, something that ended up being open to punishment.

In April 2013, poker players William ‘Bart’ Davis and John Newmerzhycky were stopped by way of a traffic cop in Iowa, ostensibly for failing to take a look at a signal, although video surveillance within the patrol automobile later showed that this is perhaps not the truth.

Police seized $100,000 in cash they based in the cars’ trunk, which represented a lot of the players’ poker bankrolls, along with a tiny level of marijuana. Although the pair eventually received $90,000 back associated with $100,000 confiscated, they were forced to spend a large number of bucks in legal fees clearing their names.

Sheldon Adelson Wrongful Termination Lawsuit To Be Heard In US Court

Sheldon Adelson may face accusations of bribery and links to organized crime in a termination suit that is wrongful. (Image: Julie Jacobson/Associated Press)

Sheldon Adelson was tooth that is fighting nail to possess a wrongful termination suit dismissed.

It was brought by way of a former employee and heard in Macau’s court system, as the case involved allegations against the Sands’ operations in the Chinese enclave.

However a judge has ruled that the case will instead be heard in Nevada, opening the possibility that Adelson and other Las Vegas Sands executives might have to respond to questions about allegations involving bribery and ties to organized crime in front of a judge that is american.

District Judge Elizabeth Gonzalez ruled on Friday that the case could be heard in Nevada, citing the legal maneuvering in the situation had all taken place in america, making it only natural that the rest of the instance should be managed there, too.

‘This matter has been pending in Nevada courts for pretty much five years,’ Gonzalez said whenever issuing her ruling. ‘Judicial economy would be served by continuing this litigation in Nevada.’

Macau Courts Preferred by Sands

Lawyers for Las Vegas Sands had hoped that the case could be heard in Macau, where they thought that courts might limit precisely what could be discussed in the way it is in an effort to protect the casino industry.

The business continues to be expected to appeal the ruling in the hopes of changing the location.

It may be surprising to see this much posturing over a termination case that is wrongful.

But, the in-patient bringing the suit is Steven Jacobs, the former main professional of the Sands’ operations in Macau, and the reason he says he was release may potentially cause serious dilemmas for the business.

Based on Jacobs, Adelson himself authorized a payment of $700,000 in legal fees to Leonel Alves, a legislator and lawyer in Macau. Lawyers for the Sands stated that the payments had been well above standard rates, and that this kind of payment could break US laws that are anti-bribery.

On that advice, Jacobs ended the company’s dealings with Alves, blocking the payments. However, he alleges that Adelson then brought Alves back on.

Jacobs Alleges Ties to Triads

Other allegations paint an image of a company which had ties to crime that is organized Macau. According to Jacobs, he attempted to distance the Sands from Macau’s triads, but could not get Adelson to go along with it.

In specific, Adelson has said in early court appearances that his Macau casinos have ‘no direct relationship with Cheung Chi Tai,’ a leader of the Wo Hop To triad.

However, documents from the company show that Cheung was part of contracts regarding junkets, the operations that help bring VIP consumers to casinos.

Jacobs alleges that Adelson knew that Cheung had ties to organized crime, while Sands officials have stated as they found out about his links to the triad that they stopped doing business with Cheung as soon.

Gonzalez’s ruling follows several days of hearings in late April and May that is early which Adelson himself testified.

Adelson’s testimony was specially combative, as he attempted to avoid answering questions and sometimes contradicted testimony off their Sands executives.

At one point during his testimony, Adelson referred to Jacobs as ‘delusional,’ and said that he was dismissed for incompetence.

In another instance, Adelson continued to argue with Judge Gonzalez him to answer a question about a 2009 email after she ordered.

‘Sir, you aren’t getting to argue with me,’ Gonzalez said to Adelson. ‘You understand that?’

Operating Earnings Up for Surviving Atlantic City Casinos

Atlantic City’s staying casinos are posting much higher profits so far in 2015. (Image:

Atlantic City may be bringing in less gambling income than before, but that doesn’t mean that the casinos there are suffering.

The eight remaining casinos into the city reported that operating profits significantly more than doubled in the first quarter of 2015, suggesting that the consolidation of the industry there could just be exercising.

The eight surviving casinos made operating profits of $81.3 million in the first three months of 2015 as a whole.

Which was a lot more than double the $38.8 million they made in profits over that exact same period in 2014.

Casinos Healthy in Smaller Market

New Jersey Casino Control Commission Chairman Matthew Levinson touted the numbers as proof that the Atlantic City casino industry isn’t in almost as bad form as some observers claim.

‘ The key indicators show that the current operators continue to enhance,’ said Levinson. ‘Gaming revenue is up, total revenue is up, net income is up, gross working earnings are up, resort occupancy rate is up and the average room rate is up.’

Overall, six of the eight casinos currently running in Atlantic City showed a profit over the very first quarter. The two exceptions were the Trump Taj Mahal, which had been regarding the verge of shutting down year that is late last and Resorts Casino Hotel.

That compares favorably to last 12 months, when 12 gambling enterprises operated for at part that is least of the quarter (the Atlantic Club shut down very early in 2014).

All of which have since been closed in that more crowded market, seven casinos posted losses, including the Atlantic Club, Revel, and Trump Plaza.

The profit figures are a reminder that it’s still not an easy task to assess the Atlantic City casino market by looking at revenues alone, particularly provided the rapidly changing number of casinos in the town.

In April, profits were really down for the remaining casinos (also after factoring in Internet gaming), mainly because Caesars had a month that is particularly good April 2014 and could not duplicate that success.

Borgata, Others Show Big Gains

But running profits may provide a better indicator of an individual casino’s overall health, and many would argue that it is what ultimately matters for the city being a whole, too.

The figure represents just how money that is much casinos made both gaming and non-gaming revenue, plus the actual costs of running those businesses, but do not factor in interest, fees or depreciation of assets.

It comes as little surprise that the Borgata Hotel Casino & Spa, the most successful casino in modern Atlantic City, was the big winner whenever it stumbled on the quarterly report. The Borgata made $38.5 million on the quarter that is first an 83 percent increase over last year.

According to Borgata’s senior vice president of operations Joe Lupo, the Borgata surely could successfully grab a large number of the latest gamblers who were previously patronizing the casinos that are now closed.

‘We aggressively reached away and the customer base discovered Borgata to be described as a nice home,’ he told the Press of Atlantic City.

However, other casinos also saw dramatic changes year over year. Both Bally’s and the Golden Nugget posted losings within the first quarter of 2014, but made more than $4 million in profits during the very first three months of 2015.