Feds Arrest 14 Men in $20K Gambling Scam
FORT MYERS, Fla. - Federal authorities arrested 14 men accused of scamming at least $20 million from gamblers across the country by falsely claiming to have inside information on sports games.
The men, arrested Thursday, were accused of conspiracy to transmit wagering information by interstate and foreign wire and conspiracy to operate an illegal gambling enterprise, according to an FBI (news - web sites) arrest complaint. If convicted, they face up to five years in prison and a $250,000 fine.
Authorities said the men ran the scam under three different businesses in the Fort Myers area: Player's Edge Inc., National Sports Consultants Inc. and Nationwide Sports Inc.
The businesses provided betting advice for gamblers and referred them to offshore betting parlors, according to the U.S. Attorney's Office. In turn, the businesses received kickbacks from the parlors.
Victims were promised that the information they received would guarantee results, but patrons lost $20 million to $25 million while betting on games and paying for the worthless advice, federal prosecutors said.
It could not immediately be determined Friday if the 14 men had lawyers.
Ron Blumberg, a lawyer who has set up a Web site to contact victims in preparation for a possible class-action lawsuit, said 18 people have come forward claiming losses ranging from a few hundred dollars to "in excess of six figures."
FORT MYERS, Fla. - Federal authorities arrested 14 men accused of scamming at least $20 million from gamblers across the country by falsely claiming to have inside information on sports games.
The men, arrested Thursday, were accused of conspiracy to transmit wagering information by interstate and foreign wire and conspiracy to operate an illegal gambling enterprise, according to an FBI (news - web sites) arrest complaint. If convicted, they face up to five years in prison and a $250,000 fine.
Authorities said the men ran the scam under three different businesses in the Fort Myers area: Player's Edge Inc., National Sports Consultants Inc. and Nationwide Sports Inc.
The businesses provided betting advice for gamblers and referred them to offshore betting parlors, according to the U.S. Attorney's Office. In turn, the businesses received kickbacks from the parlors.
Victims were promised that the information they received would guarantee results, but patrons lost $20 million to $25 million while betting on games and paying for the worthless advice, federal prosecutors said.
It could not immediately be determined Friday if the 14 men had lawyers.
Ron Blumberg, a lawyer who has set up a Web site to contact victims in preparation for a possible class-action lawsuit, said 18 people have come forward claiming losses ranging from a few hundred dollars to "in excess of six figures."
