Payment Processor held in Contempt of Court

A Canadian citizen is accused of illegally processing payments for online gambling. Douglas Rennick, the accused, faces some hefty charges under the UIGEA and has been held in contempt of court for refusing to comply with a grand jury subpoena.

Rennick is the sole shareholder and employee of both Account Services Corporation and KJB Financial Corporation. Both companies have been under the watchful eye of US authorities in connection with their relation to online poker rooms and casinos.

Three charges are being put to Rennick, conspiracy to commit bank fraud, conspiracy to operate an illegal gambling company and conspiracy to engage in money laundering. Rennick’s contempt charge came after he refused to comply with a grand jury subpoena, after his attorney cited his 5th amendment rights.

A panel of judges ruled that the 5th Amendment is not valid when it comes to corporations. According to the US Attorney’s office in Manhattan, Rennick opened a number of bank accounts in the country between 2007 and 2009, with the express purpose of receiving funds from offshore poker rooms. He is charged with not revealing the true nature of these bank accounts to the authorities.

These funds were then disbursed to the accounts of US poker players. Authorities say that over $350 million was transferred from a Cyprus bank account to the United States.

Rennick could face up to 30 years behind bars if he is found guilty.

News Added: 03 February, 2010

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