Australian national Daniel Tzvetkoff made news 2 weeks ago when he was arrested in Las Vegas and charged with bank fraud, money laundering and conspiracy to operate and finance and illegal gambling business.
Yesterday, a New York judge denied Tzvetkoff bail, meaning that he will have to remain in jail until his trial, which is more than a year down the road. Last week, a Las Vegas judge ruled that he should be released on bail because a U.S. citizen in his case would have. The prosecution then appealed to the New York District Court, where he is facing charges of bank fraud and money laundering. There, Judge Lewis Kaplan ruled that Tzvetkoff is a flight risk, due to his foreign status and access to over $100 million dollars, and denied bail.
Tzvetkoff was co-founder of online payment processor IntaBill. He allegedly moved money from American online gamblers’ bank accounts to the accounts of offshore shell companies. He then moved the funds from the shell companies to online casinos. Tzvetkoff’s type of money laundering is called an Automated Clearing House system and he used it to funnel millions of dollars between the U.S. and the British Virgin Islands.
In 2009, online casinos stopped doing business with Tzvetkoff due to allegations that he had stolen $100 million from them. Two weeks ago, Tzvetkoff attended a conference in Las Vegas where many representatives from those online casinos were present. It is believed that one of those people alerted security, which then resulted in an FBI arrest.
If convicted of all of the carges, Tzvetkoff would face up to 24 years in prison. In addition, it is estimated that he could have to wait 18 to 24 months before his trial begins. He will be locked up in jail that whole time.