Allied Money Reach Settlement with US Government
Written by Matt W | Sunday, August 22nd, 2010
Two payment processors belonging to the same man have opted to forfeit millions of dollars in a bid to end a legal battle with the US Department of Justice. Allied Systems and Allied Money were charged with acting as illegal payment processors for online poker sites such as Poker Stars and transferring winnings made by US players from the poker sites to the winners. This is considered illegal under the controversial and limping Unlawful Internet Gambling Enforcement Act.
The government seized over $13 million that it traced to a Goldwater Bank account in Arizona opened by Ahmad Khawaja, owner of Allied Systems and Allied Money. According to the DOJ, the money in the account was used to make payments to US players between January and May 2009.
The firms were given a choice to enter into a long legal battle with the US government (which it would probably lose, based on the current legislation in the country) or forfeit the sum and have the case closed. As such, Khawaja opted to turn his back on the money.
According to a statement issued by Poker Stars, neither the company nor its players were affected by the latest case. The group continues to operate in the United States as transparently as possible, claiming that it is not violating any law.
“PokerStars does not condone efforts by processors to conceal the nature or purpose of funds used to play online poker,” said the group. “PokerStars has taken steps to ensure that processors properly disclose the nature of their business to their relevant financial institutions.”
It is hoped that this is the last witch hunt of its kind against payment processors and online poker rooms as US poker players seek ways to enjoy online poker.
Other Articles Published on CompatiblePoker.com
· Written by Matt W · Filed Under Poker Gossip · Comments Off
