Could Underwriting An IPO Now Be A Crime?

from the bad-beat dept

Last week’s arrest of two former executives at NETeller, an online money transfer firm that does a lot of business with gambling sites, marked an expansion in the US government’s aggressive war on online gambling. For the first time, it became clear that US law enforcement considered it a crime not just to be involved with one of these sites, but to be involved in a peripheral industry somehow related to online gambling. The Department of Justice appears to be going further down this road, as it’s apparently started issuing subpoenas to investment banks that helped online gambling sites (many of whom are publicly traded in London) raise money. It’s not clear yet what the purpose of the subpoenas is, and it’s too early to guess whether or not the DOJ wants to pursue charges directly against the banks themselves. It’s possible that they just want more information for help in prosecuting more cases against industry executives. But either way, it’s a continuation of a disturbing trend, whereby legal activities, that may be related to illegal ones, come under fire.

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Comments on “Could Underwriting An IPO Now Be A Crime?”

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Shag says:


They fund a business that was legal where or when the loan has been accepted.

If simply arresting people for providing money, every bank manager in the world would be snagged. I am sure that some of the money that they have given out has been to front-companies et al. So why is it ok for that but not for on-line gambling that has nothing to do with their country.

I think that these people will have lawsuits against the go9vernment for this.

Malicious prosecution? Maybe?

Poomer says:

Online Gambling :o&

I dont like gambling.
I have a Computer Science degree.

I think the goverment wants to monitor online gambling because:

Its easy to twist the program for the “house” to ‘always’ win.

For fairness in gambling, I would like to see the 52 card deck on the table that gets shuffled every round. Otherwise it just promotes cheating… I would never play online or play slot machine or anything electronic/programmable…

This is one of the few areas where I would want the goverment to get involved… Thats just me…

Panaqqa says:

You want to see the cards, eh?

Well Poomer, let’s just say you CAN see the deck of 52 cards in front of you.

I used to be a casino dealer. I could shuffle them right in front of you and then deal myself just about any hand I wanted without you noticing a thing. Never mind from the bottom of the deck, I can deal myself aces out of the MIDDLE of the deck.

I say it’s a pure government revenue turf battle, plain and simple.

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