Washington State Gambling Commission

Washington State Gambling

Commission

Criminal Intelligence Unit

Illegal Internet Gambling Investigations From Intelligence to Case Presentation

NAGRA – New Orleans 2008

Presented by:

• Special Agent Supervisor Richard Herrington

• Criminal Intelligence Unit • Telephone: 360-486-3590 • Cell: 360-239-2183

Illegal Internet Gambling

Horseracing

• Most are being operated from off shore locations • Primary Federal Law is the Wire Act

• Not an authorized activity in Washington and is a Class C Felony

Internet Gambling

– Bingo

• www.bingobugle.com – Casino Games

• www.casinogoround.com – Poker

• www.pokerstars.com – Sportsbooks

Internet Gambling Task Force

updates, planning

• LEIU 28 CFR 23 Intelligence Sharing Guidelines • Enforcement, Regulation/Legislative, Education • Currently has actively participating or assisting:

– 15 States

– 4 Federal Agencies

– Canadian RCMP, IIGET and 2 Gaming Commissions

World Influences

• UK, Ireland, Channel Islands, Malta and Gibraltar • Caribbean – Antigua Barbuda – WTO

• General Agreements on Trade

State Impacts

• Non-Regulatory Environment • Enforcement/Manpower Issues

– Training

• Technological Advances • Intelligence Sharing

– Money laundering, BSA requirements – Law Enforcement, Tribal

Where Do I Start?

Prepare for Information Management &

Overload

Intelligence

– Strategic Assessment

• Impacts – International, National and State • Enforcement Issues – Threats and Impact

Levels

• Current Criminal Capabilities • Recommended Enforcement Roles • Change in National Policy Impacts • Agency or Department Strategic Plan • Utilization of the Intelligence Process

Investigative Challenges

– Time

– Tools and Technology • Jurisdictional Issues

– Off Shore – US Territory

• Priorities …..so many targets…so little time – Vital Service Providers (Tout Services) – Online Gambling Entities

– Click for Pay site (hyperlinks) – Automated Clearing Houses (ACH)

Investigative Approaches

• Identification of U.S.Vital Service Providers – An internet website or page which provides

hyperlinks to illegal “offshore” gambling sites • www.sportscrew.com - Georgia

• www.gambling911.com - Florida and Canada • www.vegasinsider.com - Florida

– Combination “umbrella” cases

Transfer of money through credit cards, bank transfers, or third party systems

Primary focus currently is following the money through the ACH

Where Do I Start?

– Broadband, DSL – Wireless Cellular

• Create Cold Email Account like Gmail

• Create Financial Account through third party pay service:

– www.e-Passporte.com

– www.Moneybookers.com

• Obtain an undercover Mailing address which is authentic

Where Do I Start?

– www.TouchGraph.com preference for Google

– NeoTrace - TraceRoute – WhoIs

– Nettools

• Develop a Checklist

• Research Suspect Web Site (technical data) – www.vegasinsider.com

Basics

• Media capture – Camtasia and Snagit • Main case report

• Backgrounds on suspects, business and financials – www.casinocity.com - casinocity

– www.alexa.com – alexa1 – alexa 2

– www.aboutus.com – aboutus1 – 2

• Suspect webpage (technical data) and Vital Service Provider

Game Play

• Focus on investigative strategy – Sports book

– Casino Games – Poker

• Wagering Considerations – $100, $250, $500, $1000 – Offset on other sites • Recording the Evidence

– Video Capture (Camtasia Capture) – Image Capture (Snag it, print screen)

Case Report Contents

– Suspects background information – Business background information – Financial background information – Technical Data collection

– Transaction Record of Wagers • Digital Evidence

• Search Warrants and Subpoenas • Other Agency case reports • Seizure Report

Documentation

• Transaction Record of Investigative Funds • Gambling Activity Report

• Compilation Cases

– Parallel Investigations • Vital Service Providers

• Technical Data Collection

• The Facts aka the Report

• Options for Charging

Intelligence and Information

Backgrounds

• Criminal History

• Suspect and Suspect Business

• Financial

• Online Articles

–http://www.betcha.com/Blogs/article/Justice_ Gambling_Commission_Style

• Continual

–http://www.midasoracle.org/2007/07/15/justice -washington-state-gambling-commission-style/

Laws and Legal

Considerations

Federal Laws

•

Title 18

– Wire Act (1084), Travel Act (1952), Internet Gambling Business (1955) are the most applicable

– Others RICO, Money Laundering (1956), Racketeering

• Patriot Act

– Computer Crime, Electronic Evidence (email, pen registers)

• IRS Code

– Gaming, Money Laundering, Gaming Fraud (tax on wagering)

Current Approach to I-gambling

Enforcement

Federal

– Illegal under 18 United States Code

• 1084 – Transmitting Gambling Information (Wire Act)

• 1952 – Travel Act (Racketeering)

• 1955 – Illegal Gambling Business (Racketeering) – IRS, FBI, Secret Service, USPS, ICE

– Enforcement Issues: • Manpower

• Primary enforcement actions are Homeland Security, Terrorism and Narcotics Interdiction

UIGEA

• Title VIII Sections 801-803 • Signed October 13, 2006

• Effective Date July 1, 2007 for rules and regulation implementation

• Will be codified in Title 31, US Code

• Comments from Law Enforcement and Public sector currently on going.

• Does not make internet gambling illegal

• Does prohibit the payment for the illegal gambling • Relies on existing Federal Statutes and State Law to

determine if it is “unlawful internet gambling” • Provides Definitions

State Laws

• State violation seen as a predicate act for

additional charging in Federal Court

• Washington State

– Specific to internet Gambling

• Louisiana

– Specific to Utilization of the computer to commit an illegal act

Current Cases

US v Baron Lombardo

• Defining Internet Gambling Enterprise

• 5

_{Circuit Case – Mastercard Litigation}

– Modifies Wire Act only section (a) not sections (b)(c) which does NOT require that the bets or wagers be limited to sporting events/contests alone

– (d) unqualified by any relation to a sport event

GATS & WTO

• No power to change U.S. Law

• Plain Congressional intent

• Only overrule if it conflicts with the

Constitution

• Must enforce irrespective of whether

statute conforms to Customary

International law

• Wire Act is applied within the U.S. borders

Subpoenas and Search Warrants

• Timing whether the ISP, DNS, Web Browser or the ACH

• Banners or Advertisers • Records

• Forensic Examination Considerations • Examples

Seizure and Forfeiture

• Federal

– In The United States

– Foreign Countries

• MLAT, GATS, Attachés, • Local Law

Asset Sharing

• Utilization of shared assets

– Equipment (general and Law enforcement) – Facilities, furniture, vehicles

– New positions/Task Forces - OT – Contractual positions

– Law Enforcement training

– Purchase of Information/Evidence – Education/Awareness programs – Time for accounting of funds

Asset Sharing

Don’ts

• Payment of salaries for current positions

• Non – LE personnel for non- LE purposes

• Food and beverages

• Extravagant Expenses

• Supplanting Existing Funds

RICK’S VIEW

ELECTRONIC EVIDENCE

• Primary response contact your Forensic

Computer Expert prior to any search or seizure • On Scene

• Internet • Latent

• Computer Exam

• http://www.funnyordie.com/videos/33f2687080

Case Presentation

– Utilize resources • Synopsis

– Short Version of an Extremely Complex Case – Visual Aids including the Website

• Link Charts , Touchgraph, Traceroute

• Digital Reports • Digital Evidence

•

http://www.youtube.com/watch?v=k5GOBuGr