Corner stoneReport

The

Safeguarding America through 

Financial Investigations 

Volume IX: No. 1 • Winter 2012 

Inside This Issue 

Illegal Online Gaming 

and Gambling . . . . . . . . . . . . . . . . 1-2 

The Game Changer . . . . . . . . . . . . 3 

What’s Current In 

Telemarketing/Online Scams . . . 4 

Cornerstone is U.S. Immigration 

and Customs Enforcement’s 

(ICE’s) comprehensive investigative initiative for fighting fi -

nancial crime. 

The Cornerstone Report is a 

quarterly bulletin highlighting 

key issues related to ICE Homeland Security Investigations 

(HSI) financial, narcotics and 

special operations investigations. 

Toll-Free Tip Line: 

1-866-DHS-2-ICE 

www.ice.gov/cornerstone 

Illegal Online Gaming 

and Gambling 

Operation Bet Jerry’s 

I

n October 2009, the New York 

City Police Department’s (NYPD) 

Vice Enforcement Division (Vice) 

and the Richmond County District 

Attorney’s Office initiated an investigation of a criminal gambling 

organization operating primarily 

in Staten Island, NY, entitled 

Operation Bet Jerry’s. NYPD Vice 

detectives were able to infiltrate 

the organization, conduct surveillance, and identify cash movements. 

They estimated this organization 

(top) Banner displayed on 

seized	website	homepages.	

(above)	Organization	leader	

Joseph Stentella. 

(left) Stentella’s house.
 

was responsible for the collection of 

over $5.9 million a year. 

Because of the multi-jurisdictional 

and complex nature of this investigation, in September 2010, the 

NYPD requested the assistance of 

Homeland Security Investigations 

(HSI) Office of the Special Agent 

in Charge, NY’s Asset Identification 

and Removal Group (AIRG) to assist 

in the identification and seizure of 

assets associated with the organization. SAC NY AIRG immediately 

continued on page 2 
 

 

 

Illegal Online Gaming and Gambling, Continued 

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Volume IX: No. 1 

Winter 2012 

continued from page 1 

R

initiated an asset 

investigation, in coordination with the 

U.S. Attorney’s Office for the Eastern District of New 

York’s Asset Forfeiture Unit (EDNY), 

with collateral requests for assistance 

going out to SAC Newark and Philadelphia to provide assistance with 

locating and seizing assets located 

outside New York. 

AIRG investigators identified numerous assets acquired with proceeds 

of the illegal gambling operation, 

as well as assets used to facilitate 

this activity, including vehicles and 

real properties. A collection of rare 

and valuable classic cars owned by 

Joseph Stentella, the organization 

leader, was located at his property in 

Pennsylvania. It was determined by 

AIRG investigators that the vehicles 

were purchased with proceeds of 

the illegal gambling activity, and 

sold from time to time to help fund 

the organization. Finally, utilizing 

their unique expertise, experience 

and jurisdictional authority, AIRG 

investigators also targeted for seizure 

the websites used by the organization to further their illegal activities. 

AIRG investigators obtained seizure 

warrants for luxury vehicles in New 

York and New Jersey, the classic car 

collection in Pennsylvania, three 

websites owned and operated by 

the organization, as well as civil 

complaints against four properties 

in Staten Island, NY including a 

strip mall. Federal Writs of Assistance were also prepared to gain 

access to locations where the 

vehicles were stored for the 

purpose of seizing them. 

On May 24, 2011, in cooperation 

with the NYPD takedown of the 

organization, AIRG investigators in 

New York, New Jersey and Pennsylvania located and seized assets of 

Joseph Stentella’s organization totaling over $4 million in violation of 

18 USC § 1955 (Illegal Gambling), 

and 18 USC § 1956 (Money Laundering).These assets included eight 

vehicles worth over $200,000, 15 

classic cars worth over $1 million, 

four real properties in Staten Island, 

NY with a combined value of approximately $2.9 million, and three 

internet domain names, including 

betjerrys.com, momosportsbook. 

com and 7777sports.com.The 

homepages of the seized websites 

were replaced with a law enforcement seizure notice. SAC Newark 

AIRG agents and Task Force officers 

also provided substantial assistance 

Strip mall in Staten Island,

 New York, used to facilitate 

illegal gambling and money 

laundering activity. 

Red Flag Indicators 

• Main subject’s unexplained 

wealth (he had over $1 million 

classic car collection & 2 homes— 

“Income” derived from inactive 

video rental store). 

• Business bank account received 

payment processor service payments which was inconsistent 

with the type of business reported 

(Subject received payment processor payments in rounded $200-

$300 amounts, which were actually 

gambling debt payments). 

• Frequent wire transfers unrelated 

to legitimate business activity 

received and immediately 

withdrawn as cash. 

in this investigation by developing 

criminal leads and coordinating the 

arrest of 16 targets throughout New 

Jersey for violation of New York State 

gambling, racketeering and money 

laundering laws.The takedown of 

this organization was widely reported in the New York metro media, 

which included particular emphasis 

on the assets seized. 

This multi-agency, multi- jurisdiction 

investigation was an overwhelming success due in large part to the 

cooperation and collaboration with 

state and federal law enforcement 

and prosecution, particularly for the 

purpose of seizing assets.The teamwork and dedication by all involved 

paid off with the complete dismantling of this criminal organization 

through the arrest of over thirty key 

members, as well as the seizure of 

assets totaling nearly $5 million.n
 

sors to sell lottery tickets to in-state 

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TheCorner

The Game Changer 

adults. “In December 2009, officials from the New York 

State Division of the Lottery and the Office of the 

Governor of the State of 

Illinois sought the Criminal Division’s (of the DOJ) 

views regarding their plans 

to use the Internet and outof-state transaction processors to sell lottery tickets to 

adults within their states.” 

The proposals by New York 

and Illinois include among 

other items, “virtual tickets 

electronically delivered over 

the Internet to computers or 

mobile phones located inside the State of New York” 

and “a pilot program to sell 

lottery tickets to adults over 

the Internet, with sales restricted by geolocation technology to ‘transactions initiated and received or otherwise 

O

Page 3 of 4 

Volume IX: No. 1 

Winter 2012 

n December 

R

23, 2011, 

The United States 

Department of 

Justice (DOJ) 

released an opinion which reversed 

years of federal policy related to 

online gambling.The opinion, 

dated September 20, 2011, which 

is quoted below and available at 

http://www.justice.gov/olc/2011/ 

state-lotteries-opinion.pdf, states in 

part that “the Wire Act prohibits 

only the transmission of communications related to bets or wagers on 

sporting events or contests.” 

This opinion was the result of request for an opinion by the States 

of Illinois and New York regarding 

the lawfulness of using the Internet 

and out-of-state transaction procesmade exclusively within the State 

of Illinois’”. Federal laws cited in 

determining the lawfulness of the 

lotteries were the Wire Act (Title 18 

United States Code, Section 1084) 

and the Unlawful Internet Gambling 

Enforcement Act (Title 31 United 

States Code Sections 5361-5367). 

The DOJ has concluded that the 

proposed lotteries are not within the 

prohibitions of the Wire Act, as they 

do not involve wagering on sporting 

events or contests. 

While the above opinion is not an 

all encompassing legalization of 

online gambling, it does clear the 

way for states to open their lottery 

programs to include online transactions, subject to state law.Various 

entities have opined that this opinion has opened the door to allow 

online poker and other Internet 

gambling. As this applies to HSI, 

there is a concern that online gaming presents a more readily available 

avenue to launder money. 

HSI will continue to monitor the effects of this opinion on our investigative responsibilities, and look 

forward to a continued dialogue 

with our private partners to determine new and emerging trends in 

money laundering. n
 

 

 

 

 

 

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What’s Current In Telemarketing/Online Scams 

Page 4 of 4 

Volume IX: No. 1 

Winter 2012 

Telemarketing 

R

and online scams 

are a global issue; 

frequently the 

perpetrators are 

based abroad and scam U.S. victims. 

HSI investigates and strives to 

prevent transnational crime. 

This list is by no means all inclusive. An online search for any 

combination of the following terms 

will yield a vast result; fraud, online, 

telemarketing, and/or scam. Most 

scams have the same goal: to make 

money. Bankers and those in the 

financial sector are often in the best 

position to alert people to known 

scams and to inform them where to 

go to get more information. 

The following short list of current 

scams can be used to help front line 

financial representatives uncover 

possible fraud victims. 

Attorney Email Scams: An attorney’s 

office is contacted to assist in the 

collection of a judgment.The client 

is often located overseas and needs 

“local” representation for collection 

of the verdict. 

Lotteries and Sweepstakes: You 

just won a foreign lottery! You have 

a letter from the foreign lottery 

commission and a check! 

Overpayment Scams: Finally a buyer 

for a 1997 Honda Accord for full 

asking price! $3,300!! But the 

buyer only has a check/cashier’s 

check for $7,800. 

Mystery Shopper Scams: You are 

hired to be a mystery shopper and 

asked to evaluate the customer service of a money transfer company. 

You’re given a check to deposit in 

your personal bank account. 

Online Purchase Scams: Online 

purchase which requires a money 

transfer as the only form of payment 

is a red flag: ask to use a credit 

card, an escrow service or another 

way to pay. 

Advance Fee Loans: Ads and websites that guarantee loans or credit 

cards regardless of your credit history may be tempting – but if you 

have to wire money for the promise 

of a loan or credit card, it’s likely 

you’re dealing with a scam artist. 

Family Emergency Scams: Someone 

claiming to be a family member, 

or calling on behalf of a family 

member calls needing cash to pay 

bail, a bribe, or for emergency 

medical care. He begs that money be 

wired right away and to keep 

the request confidential. 

Apartment Rental Scams: Savvy 

scammers sometimes take over rental or real estate listings by changing 

the email address or other contact 

information, or listing a location 

for rent that they don’t own or have 

authority to rent. 

Romance Scams: The prospect 

of companionship can be blinding. 

Many people have fallen victim 

to fraud from supposed love interests located overseas, claiming 

money needed for a visa, airline 

tickets, or medical care for themselves or family. 

The Common Thread 

The goal in all of these described 

frauds is to make money. In all of the 

above cases, the victim sends money 

via wire (preferred) or through 

other channels. Once the money is 

sent, there is little chance of recovery. 

The perpetrators will bleed as much 

money from each victim as they 

can, and often share their victims’ 

information with others. Perpetrators 

often make the transaction as easy as 

Red Flag Indicators 

Educate the dangers of wiring 

money to: 

• a stranger — in this country or anywhere else. 

• someone claiming to be a relative 

in a crisis — and who wants to keep 

their request for money a secret. 

• someone who says a money transfer 

is the only form of payment that’s 

acceptable. 

• someone who provides a check, 

and asks for some of the money to 

be sent back. 

possible for victims, by telling them 

exactly where to wire the money 

from (company and location), arranging shipping of merchandise 

(the seller then loses the merchandise and the overpaid funds), or 

trying to appeal to a victims desperation, loneliness or greed.They also 

will try to prevent the victim from 

disclosing anything about the transactions to anyone. 

Email accounts can be spoofed or 

hacked, making fraudulent emails 

appear legitimate. 

HSI continues to combat fraud 

through education, and actively 

works investigations where fraud has 

occurred. For more in depth coverage of HSI’s telemarketing fraud 

initiatives, refer to www.ice.gov/ 

cornerstone. Cornerstone reports 

dated Winter 2010 and June 2009 

include more specific information.n

Additional online resources 

for information about current trends 

in fraud: 

	 •www.usa.gov/Citizen/Topics/

Internet_Fraud.shtml 

	 •www.ftc.gov