|
|
#1
10-17-2005, 09:41 PM
|
|||
|
|||
Affiliate indictment
I've copied this article verbatim. The article is about a prosecution of an affiliate of a gambling site, but unfortunately does not spell out in detail the allegations of the indictment. I might try and obtain a copy of the indictment myself, and then share it here, if there's interest:
"Affiliate Indictment Stands in US Court by Emily Swoboda A New Jersey judge last week denied an attempt by New Jersey-based online gambling affiliate Nicholas Drakos to have an indictment against him dismissed. Drakos, 48, was arrested in April 2004 after assisting undercover detectives in placing bets on his Web site, internationalnetcasino.com. He was indicted in November 2004 and charged with promoting gambling, conspiracy and money laundering between January and April of 2004. The state's constitution contains no statute or amendment explicitly making Internet gambling illegal, and that's exactly what Drakos' attorney, Robert Dunn, argued in the request for dismissal. Dunn also argued that Drakos did not know that running a gambling Web site was illegal and that along with his donations to the State Police and a local police union, his client, in fact, sent business cards that clearly advertised his online gambling business. Assistant Prosecutor Melanie Smith argued, however, that under current state law, "A person is guilty of promoting gambling when he or she knowingly engages in a conduct that materially aids forms of gambling activity"--in this case, profiting from a business that facilitates sports betting. Smith also argued that amendments to the state constitution have legalized specific forms of gambling, but prohibits the legislature from authorizing other forms of gambling unless a majority vote in a special election calls for doing so. Despite Dunn's efforts, a ruling handed down Tuesday by Superior Court Judge Salem Ahto sided with Smith and denied Dunn's request, citing an amendment to the state constitution that identifies gambling that is legal in the state of New Jersey, such as Atlantic City casinos, state regulated racetracks and state lotteries. The absence of a specific law regarding Internet gambling, he added, does not make it legal. Frank Catania, president of Catania Consulting Group and former director of The New Jersey Division of Gaming Enforcement, said Drakos' defense was not plausible. "Generally speaking, the only gambling that I could ever say was legal in New Jersey is gambling that takes place in Atlantic City, where, specifically, we had a constitutional amendment that changed it," Catania said. "Our constitution is very clear. You can have gambling in Atlantic City. You can have the lotteries; but you can’t do it anywhere else. There's nothing else you can do about it." The New Jersey Legislature is currently looking at two bills related to Internet gambling. Senate President Richard Codey, D-West. Orange, is sponsoring S1013, which would amend the definition of illegal gambling to include Internet gambling. The other bill, AJR66, introduced by Assemblyman Joseph Azzolina, R-Middletown, would establish a 21-member Internet gaming commission to recommend a course of action regarding online gaming in New Jersey. Both were introduced in early 2004; neither has seen any action in the legislature. Catania believes the Drakos case is an isolated incident and that although it is the first case of this nature in New Jersey, it has nothing to do with the proposed bills. "This is not that much of an Internet gambling case because, first of all, he was not an operator," Catania said. "He's more or less an affiliate, and he was just bringing people to the site" He added that Drakos should have avoided meeting with bettors, taking money from them and showing them how to use the site. Drakos is due back in court later this month. The Prosecuting Attorney's office has offered a plea deal that would send Drakos to a state prison for up to four years. Neither Dunn nor Smith could be reached for comment." 
|
|
#3
10-17-2005, 09:56 PM
|
|||
|
|||
|
Re: Affiliate indictment
I can't find the indictment yet, but I did find this other article:
"PERPLEXING LEGAL RULING IN NEW JERSEY 7 October 2005 When is a non-law a law? Even legal folk were scratching their heads a little this week as the already complex US legal position on Internet gambling took another puzzling twist thanks to a Superior Court judge who has upheld a recent decision to prosecute an alleged gambling site operator. In essence, the judge ruled that operating an online gambling site was illegal...even though there is no law that specifically bans betting over the Internet in New Jersey. Before the judge was a defence lawyer for Nicholas Drakos (48) who unsuccessfully tried to get Superior Court Judge Salem Vincent Ahto in Morristown to dismiss the indictment against his client, who is charged with promoting gambling, conspiracy to promote gambling and money laundering between January and April 2004. Attorney Robert Dunn argued that the state Legislature has never passed a law that makes Internet gambling a crime. Drakos hosted the Web site known as International Net Casino.com, and instructed bettors on how to set up accounts to place wagers on professional and collegiate sports events without understanding it as a crime, the lawyer maintained. Morris County Assistant Prosecutor Melanie Smith countered by suggesting that under state law, a person is guilty of promoting gambling when he or she knowingly engages in conduct that "...materially aids any form of gambling activity." And amendments to New Jersey's constitution have legalised certain types of gambling in New Jersey and prohibited the Legislature from authorising other forms of gambling "...unless the specific kind, restrictions and control ... are approved by public referendum," she contended. Then came the judge's take on the debate: simply because the Legislature has not specified that Internet gambling is a crime does not mean it is lawful, he said. There apparently is no legal precedent in New Jersey that explicitly prohibits Internet gambling. However, Judge Ahto read passages from New Jersey's constitution, citing approved forms of gambling that include casinos, state-run lotteries and certain types of raffles or Bingo games that benefit civic groups, senior citizens, veterans, religious, educational, fraternal and other specified organizations. He pointed out that there was no mention of Internet gambling. The issue is still at an early stage, and although Judge Ahto would not allow a summary dismissal of the charges he ruled that a proper trial where relevant evidence is produced against Drakos was necessary. The case is the result of a "sting" operation in which an undercover officer asked Drakos to set up an online betting account and they met in person in January 2004. During their meeting, the undercover official discussed establishing an online account as well as Drakos'"affiliate program," which was a commission incentive for bettors to recruit other bettors, the papers said. The officer gave Drakos $100 to fund his new gambling account, and it was set up in his presence. The undercover officer later recruited other undercover officers to log on to the Web site and set up additional accounts under the "affiliate program."On two occasions, the undercover officers used the Web site and their new accounts to place bets that totaled in the $1,000 range, court papers said. Drakos was arrested on April 1, 2004, at Newark Liberty International Airport, when he allegedly was carrying $1,632 in cash along with gambling records."
|
|
#6
10-17-2005, 10:12 PM
|
|||
|
|||
|
Re: Affiliate indictment
[ QUOTE ]
He added that Drakos should have avoided meeting with bettors, taking money from them and showing them how to use the site. [/ QUOTE ] This could be his biggest mistake. [ QUOTE ] Senate President Richard Codey, D-West. Orange, is sponsoring S1013, which would amend the definition of illegal gambling to include Internet gambling. [/ QUOTE ] He might do better on appeal if the definition of illegal gambling doesn't include internet gambling, .
|
|
#7
10-18-2005, 09:57 AM
|
|||
|
|||
|
Re: Affiliate indictment
I posted this because it confirmed a theory I always thought was available to prosecutors: i.e., that an affiliate could be charged with assisting an illegal gambling operation simply by referring customers to a site that is supposedly illegal.
Yet, it never ceases to amaze me how prosecutors choose to spend their resources. This prosecution actually arose from an undercover operation. As a practical matter, if I were an affiliate of a poker room - as opposed to the subject of the story, who was an affilite of a sports betting operation - I would not be especially worried by this. But if this prosecution is actually successful - a big if - I would expect more to follow.
|
|
#8
10-18-2005, 10:03 AM
|
|||
|
|||
|
Re: Affiliate indictment
[ QUOTE ]
[ QUOTE ] Senate President Richard Codey, D-West. Orange, is sponsoring S1013, which would amend the definition of illegal gambling to include Internet gambling. [/ QUOTE ] He might do better on appeal if the definition of illegal gambling doesn't include internet gambling, . [/ QUOTE ] IANAL, but I think passage of this law might actually help his case. If a new law was needed to make what he did illegal, he could argue that it wasn't illegal when he did it.
|
|
#10
10-19-2005, 07:35 AM
|
|||
|
|||
|
Re: Affiliate indictment
Lets give them busterstacks [img]/images/graemlins/smile.gif[/img]
|
 |
|
|
Linear Mode
