Showing posts with label gambling. Show all posts
Showing posts with label gambling. Show all posts

Thursday, January 26, 2012

Dirty rotten scoundrels

If you want to see your tax dollars at work, you need to check out Michael McKnight's piece on SI.com about the point shaving scheme at the University of San Diego.

Now, before I go any further I must say that sports are entertainment. Yes, a sporting event is the ultimate reality show but, in the end, the game is meant to entertain. Fans have a multitude of entertainment options and sports must compete with restaurants, clubs, the movie theater or the myriad of other things you can spend your hard-earned dollars on.

To this day I don't understand why los federales are interested in alleged point shaving schemes in college sports. The only people who get hurt are the folks who end up betting on the wrong side. We're not talking about throwing games, we're talking about missing a shot here and there or turning the ball over to keep the game within the spread.

Let me repeat, the only folks getting "hurt" are bettors, bookies and the casinos.

As Mr. McKnight points out, the key figure in the alleged scheme was a bookie named Steve Goria. Mr. Goria became the apple in the eyes of los federales when he was stopped at the border with a whole lot of cash - and a map to the pot capital of Northern California. Operation Hookshot was soon born.

The star of the sting was a confidential informant who was looking at a 10-20 year stretch in federal prison for a variety of drug crimes. He was only too willing to help out.

Just to make things more interesting, the informant is represented by the same attorney, Nicholas DePento, who represented Mr. Goria when he was stopped at the border in 2008. That raises questions of whether or not Mr. DePento violated his duty to his former client when he arranged for his current client to become the government's tool.

But the question is whether or not the FBI manufactured this alleged scheme. Did their informant drive the action or was he merely the means of discovering what was going on down by the ocean? Did the FBI stumble onto the scheme when they nabbed Mr. Goria at the border or did they manufacture it?

The evidence compiled by SI.com doesn't seem to indicate that, with the possible exception of one game in 2010, that there was any unusual betting patterns on USD games while the scheme was supposedly going on. And trust me, USD is such a small school that any suspicious bets would be detected quite easily.

What was the point in the investigation? Who benefits from it? And does it make anyone feel better knowing that the key government witness is a convicted felon who is facing a decade or more in prison?

And does it make sense for the government to go around creating criminal acts when there is more than enough real crime going on? If they wanted to go after some folks, why not take a look at the shenanigans in the mortgage-lending industry that helped bring down the economy?

The importance in the story, however, is in laying bare the ways in which our government schemes to entrap people in criminal enterprises. When you lie down with the pigs, you're bound to get dirty.

Saturday, April 16, 2011

This table is now closed!

We can all breathe a deep sigh of relief as our government is hard at work keeping us safe from the scourge of online poker.

On Friday, los federales effectively shut down three online poker sites after unsealing indictments alleging bank fraud and money laundering on the part of the executives at PokerStarts, Full Tilt Poker and Absolute Poker.

The indictments allege that the sites circumvented a 2006 law forbidding US financial institutions from handling transactions for online gambling sites -- most of which are owned and operated outside the United States. The US government is seeking more that $3 billion in money laundering penalties and
forfeitures.

Now let's be clear on this, no US-based financial institution lost any money as a result of the alleged fraud. Money passed through the banks on its way to customers and owners of the online poker sites. The only folks who lost money were the players themselves.

Our military forces are stuck in a quagmire in the Middle East (didn't see that coming, did you?). TSA employees are groping 6-year-olds (and parents just stand there and watch). The government's heading for a shutdown because lawmakers are realizing there just isn't enough money that can be whacked from the budget (unless someone looks under the mattress at the Pentagon). Unemployment remains high and the rising cost of fuel is threatening to put a damper on the economic recovery. Schools are laying off teachers and the Fourth and Sixth Amendments are under assault daily.

But at least we don't have to worry about people playing poker on their computers.

In the meantime you can still play government-sponsored lotteries that transfer money from the poor to state treasuries. You can still bet on the ponies and the dogs at your local horse or greyhound track. You can even go to legal casinos across the country and burn your money at the slot machines. But no online poker.

That online gambling is bad and the government never could figure out a way to get its hands on the money.

And ultimately, that's what this was all about. It was a giant cash grab by los federales. Meanwhile, the people who cooked the books with the mortgage lenders and banks are still out enjoying cocktails after work with nary a fear of getting pinched by the feds. But going after those crooks would require the government to admit that their regulators were either incompetent or in on the swindle from the get-go.

Almost like watching somone backdoor a flush to top the set you made on the flop.