Two Connecticut Men Charged in $3 Million Online Gambling Fraud Scheme

In a shocking case that has sent ripples through the online gambling industry, two Glastonbury, Connecticut residents have been indicted on multiple federal charges for allegedly orchestrating a sophisticated fraud scheme that defrauded major online gambling platforms, including FanDuel, of over $3 million.

The Accused: Amitoj Kapoor and Siddharth Lillaney

Amitoj Kapoor (29) and Siddharth Lillaney (29), both residents of Glastonbury, Connecticut, were arrested by local law enforcement and charged with an extensive list of federal crimes. The duo appeared before U.S. Magistrate Judge Maria E. Garcia and a federal grand jury in New Haven, where they were each released on a $300,000 bond.

A 45-Count Federal Indictment

The charges, filed by the United States Attorney’s Office for the District of Connecticut, include a staggering 45-count federal indictment. This indictment was returned by a grand jury and encompasses a wide range of offenses, including fraud, identity theft, and money laundering.

Joint Statement from Authorities

The charges were announced in a joint statement by United States Attorney for the District of Connecticut David X. Sullivan, Thomas Demeo, Special Agent in Charge of IRS Criminal Investigation in New England, and Bryan T. Cafferelli, Commissioner of the Connecticut Department of Consumer Protection.

The Scheme: Exploiting Stolen Identities

According to court documents, Kapoor and Lillaney allegedly used various tools to mine personally identifiable information (PII) from Connecticut victims. The indictment states that they used the PII of approximately 3,000 identity theft victims to open FanDuel and other online gambling accounts, generating approximately $3 million in profits during the scheme.

Exploiting Promotional Offers

The men reportedly exploited promotional “bonuses,” “credits,” or “bonus bets” offered when a user opened an account or placed an initial bet. They allegedly operated two website accounts for BeenVerified.com and TruthFinder.com to “obtain additional background information” on prospective victims.

Laundering the Profits

The court alleged that the pair would use fraudulent accounts to take winnings and bonus bets and transfer them to a virtual card backed by an FDIC-insured financial institution, which FanDuel allowed account holders to use to make deposits to and withdraw from their FanDuel account.

Serious Charges and Potential Sentences

The allegations against Kapoor and Lillaney include:

• 23 counts of wire fraud, each carrying a maximum term of imprisonment of 20 years
• 10 counts of money laundering, each carrying a maximum term of imprisonment of 20 years
• 8 counts of identity fraud, each carrying a maximum term of imprisonment of 15 years
• Conspiracy to commit wire fraud and identity fraud, each carrying a maximum term of imprisonment of 5 years
• 2 counts of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of 2 years
• One count of money laundering conspiracy, an offense that carries a maximum term of imprisonment of 20 years

The Investigation and Prosecution

Assistant U.S. Attorney Michael S. McGarry is prosecuting the case based on information presented by the Internal Revenue Service, Criminal Investigation Division, and the Connecticut Department of Consumer Protection (DCP).

Industry Response

FanDuel, the online gaming operator for Mohegan Sun Casino, responded to the charges with a statement emphasizing their commitment to consumer protection and fraud prevention.

“We continue to invest in advanced systems, responsible gaming tools, and fraud-prevention measures to ensure a safe and secure experience for every player online and in all other areas of our business,” said James Gessner Jr., Mohegan Tribal Chairman.

Authorities’ Perspective

“This case started as a gaming-related investigation, but the scope of the alleged identity theft and fraud, with thousands of potential victims across the country, quickly became the primary focus,” said DCP Commissioner Bryan T. Cafferelli.

“Identity theft is a serious crime that can have lasting consequences for victims,” added DCP Gaming Director Kris Gilman. “We are proud of the work our team has done to result in these arrests, and grateful to the IRS Investigators and U.S. Attorney’s Office for assisting in our investigation and pursuing this case.”

The Dark Web Connection

The severity of these charges is further underscored by allegations that Kapoor and Lillaney obtained some of the stolen data from “darknet” or illegal market connections via Telegram. This aspect of the case highlights the growing concern over cybercrime and the use of anonymous online platforms for illegal activities.

Timeline of the Alleged Fraud

The prosecuting parties have provided a timeline of the supposed fraud, with court documents indicating that as early as 2021, Kapoor and Lillaney began their scheme. Over the course of several years, they allegedly built up a network of fraudulent accounts and systematically exploited the online gambling platforms’ promotional offers.

The Impact on Victims

While the exact number of victims has not been disclosed, the scale of the alleged fraud – involving 3,000 stolen identities – suggests that the impact on individuals could be significant. Identity theft can have long-lasting consequences for victims, including damage to credit scores, financial losses, and the emotional toll of having one’s personal information compromised.

The Importance of Regulation

This case highlights the critical advantages of regulated iGaming, where strict oversight and close coordination with law enforcement protect consumers far more than unregulated alternatives. The swift action taken by authorities in this case demonstrates the effectiveness of a well-regulated industry in combating fraud and protecting consumers.

Looking Ahead

As this case moves forward, it will likely serve as a warning to others who might consider similar schemes and a reminder to online gambling platforms of the importance of robust security measures. It also underscores the ongoing challenge faced by law enforcement in combating cybercrime and the need for continued vigilance and cooperation between regulatory bodies, law enforcement agencies, and the private sector.

The outcome of this case could have far-reaching implications for the online gambling industry, potentially leading to even stricter regulations and more advanced fraud prevention measures. As the legal proceedings unfold, all eyes will be on the courtroom to see how justice is served in this complex and far-reaching case of alleged online gambling fraud.

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