Unlawful Internet Gambling Update

The US House Financial Services Committee has rejected Bill H.R.5767 that would have blocked the implementation of the 2006 UIGEA: Unlawful Internet Gambling Enforcement Act.

The amendment would have required the Treasury & Justice Department along with the Federal Reserve to define the term “Unlawful Internet Gambling”. There is argument that without a clear definition of the term it will be impossible to enforce the act.

The baking industry has expressed its concern at having a role to play in regulating the online gambling sector. The bill was rejected with the comment that the proposal was “a banking issue, not a gambling issue”, with the comment that the banking industry should not have the right to determine what is legal.

The bill’s defeat is likely to be seen as a blow to the online gambling sector as well as the banking industry.

Jail for Fraudster with Multiple Identities

A fraudster who created multiple identities has been jailed for 7 years after pleading guilty to fraudulently claiming over £2.7million in false VAT repayment.

Roderick Roy devised a complex fraud using a number of different identities, even claiming at one stage that one of them had died. He forged numerous documents and used these to create several bogus companies and multiple bank accounts to siphon off fraudulent repayments.

Roy’s prosecution is the result of a lengthy investigation by the Revenue & Customs Prosecutions Office (RCPO), an independent prosecuting authority that reports to the Attorney General.  When fraud officers began to enquire into the companies no trace could be found of the listed directors; John Morris, Alexander Williams and John McLaren.

Their investigations revealed that Roy had committed fraud to the tune of £2,723,507.75 using the following false identities and companies:

·John Percival Morris, DOB 31 December 1950.

(Director Cherrymist Ltd, Moorford Ltd and Williams and Soares Ltd)

·John McLaren DOB n/k.

(Represented Cherrymist and Moorford)

·Ross Sumner DOB 6 June 1966 or 28 February 1958.

(Company secretary of Moorford Ltd)

·Peter Hanson DOB n/k

(Noble Computer Solutions Ltd)

In sentencing His Honour Judge Ainley told Roy:“A custodial sentence was inevitable. You are a Walter Mitty character and central to this fraud, even continuing after part of the fraud was discovered.”

HMRC also commented on the case, observing that: “The sophistication behind these frauds means that our investigations are increasingly complex but we are committed to pursuing the criminals responsible.”

Fraudster in Cartoon Character Payments Scam

A Californian man has been charged with committing four counts of computer fraud, wire fraud and mail fraud after posing as cartoon characters to obtain $50,000 from two online brokers.

Michael Largent wrote a computer script which opened 58,000 online brokerage accounts with false names, addresses and social security numbers.  He opened some accounts using names from the cartoon series King of the Hill and others using Johnny Blaze, which fans of Marvel’s Ghost Rider may recognise from the comics and film.

Once the accounts were opened, Largent was able to use the broker's verification systems as a means of deceptively gaining money. When a customer opens a new brokerage account, the broker usually makes a 'micro-payment' to verify the account is live. The amounts are usually no more than 2 dollars, but because Largent has over 58,000 accounts he was able to accumulate $50,000 in total.

Largent was caught because of the USA Patriot Act; similar to the Anti Money Laundering regulations in force in the UK. Once the bogus accounts were identified they were found to be linked to 5 IP Addresses, all which could be traced to Michael Largent’s broadband account.

Largent is currently on bail, due to return to court on 19th June. To find out more about address verification, document checking or IP verification as part of money laundering compliance regulations please click on the links, or contact us for a demonstration.

Retail Fraud Interview

Filmed at Retail Fraud 2008, David Pope, Marketing Director at 192.com Business Services explains how businesses can protect themselves against fraud chargebacks.

The videos feature an interview with the convicted ex fraudster Elliot Castro, who gives his opinion on fraud in the UK.

Missing Live: 192 Helps Reunite Brother and Sister

192.com Business Services has been featured on the BBC One TV show: Missing Live.

The show features a brother and sister who were reunited with the help of 192 and the Salvation Army.

The Salvation Army use 192's People Search Solution to trace and contact missing people, and in this case were able to find the missing person in question using address verification and age guide matching.

You can view the footage below: