Two Connecticut men, a father and son, are facing federal charges in a substantial $3 million online gambling fraud scheme. Robert G. Roth and Robert A. Roth stand accused of conspiring to operate an illegal gambling business, committing bank fraud, and engaging in money laundering. This elaborate operation allegedly tricked financial institutions into processing transactions for their illicit enterprise.
Unraveling the Illicit Gambling Operation
The indictment details how Robert G. Roth, aged 73, from Guilford, and his 43-year-old son, Robert A. Roth, from Madison, ran their scheme. They allegedly used companies like Pari-Mutuel Management Inc., and its associated website, pari-mutuel.com. Through these entities, they facilitated illegal online gambling, primarily focused on horse racing bets. The core of their fraud involved deceiving banks. They submitted false information, concealing the true nature of their business. This allowed them to process over $3 million in gambling transactions.
Sophisticated Deception and Bank Fraud
The Roths reportedly employed various methods to disguise their activities from banks and credit card companies. They allegedly mislabeled gambling transactions as legitimate sales of “digital content.” To further complicate detection, they utilized multiple shell companies and merchant accounts. They also structured transactions in specific ways, attempting to avoid scrutiny. These tactics were crucial in enabling their unauthorized gambling operations to persist. The financial institutions unknowingly facilitated these illegal activities. This deliberate concealment forms the basis of the bank fraud charges.
Serious Charges in the Online Gambling Fraud Scheme
Both Robert G. Roth and Robert A. Roth face multiple federal charges. These include:
- Conspiracy to commit bank fraud: This charge carries a maximum penalty of 30 years in prison and a fine of up to $1 million.
- Conspiracy to operate an illegal gambling business: For this, they could face up to 5 years in prison and a $250,000 fine.
- Conspiracy to commit money laundering: This carries a potential sentence of up to 20 years in prison. It also includes a fine of up to $500,000, or twice the value of the laundered funds.
These severe penalties underscore the seriousness of the allegations.
The Ongoing Investigation
The investigation into this elaborate scheme has been a collaborative effort. Key agencies involved include the IRS-Criminal Investigation, the Federal Bureau of Investigation (FBI), and the U.S. Attorney for the District of Connecticut. These authorities work to uncover and prosecute financial crimes. The charges against the Roths serve as a reminder. Operating illegal online gambling businesses carries significant legal risks. The judicial process will now proceed, determining the outcome for the accused.
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