Australian Daniel Tzvetkoff, whose payment processing company Intabill alledgedly processed nearly $1 Billion worth of illegal transactions for online poker sites, is set to testify against those indicted on Black Friday in a court hearing in New York on April 9. He testifies as a man with insider knowledge on the whole ordeal, after striking a secret deal with prosecutors when previously faced with a 75 year jail sentence.
John Campos (a former Vice Chairman of the Board and part-owner of SunFirst Bank in Utah) and Chad Elie ( a payment processor who is accused of lying about the nature of the transactions) will be the first to appear before the Manhattan court. Both men face multiple charges which include the violation of the Unlawful Internet Gambling Enforcement Act and conspiracy to commit money laundering.
Tzvetkoff will ‘come out of hiding’ from his placement in the witness protection programme in order to testify. What a fall from grace from a man who was animating cartoons for the New York Times at the age of 16, and who had left school having developed software to process online payments securely just as online shopping was beginning to boom. He did enjoy some time at the top which came with the success of Intabill, but after being arrest in April 2010 due to his involvement in the DoJ’s efforts to curb illegal online gambling, he became a Government informant. He will now face the men he previously worked with to make millions under very different circumstances in April.
Both defendants have now submitted their final motions, with both having earlier motions denied by Judge Lewis Kaplan.
The government’s motion asserts that Curtis Pope, a man with strong ties to the payday loan industry, “Introduced Elie to Daniel Tzvetkoff as someone who had connections to numerous banks and who could use his club business as a cover for internet gambling transactions.”
It provides further details of Elie’s discussions with a US-based representative of Intabill, and the payment processor’s alleged $4m theft from PokerStars, claiming that it was this [eventually resolved] dispute which saw Elie introduce the operator to SunFirst Bank, then part-owned by Campos.
Meanwhile, a number of other defendants including Howard Lederer, Ray Bitar and Rafe Furst, have been given until 14 May to respond to the amended civil complaint.