US subpoenas bank records in gambling probe

Filed in archive on January 22, 2007

In another step in its war on internet gambling, the US Department of Justice has subpoenaed records from at least four major Wall Street investment banks.

From Reuters News Service - "The Sunday Times and Sunday Telegraph newspapers earlier reported that the U.S. had sought the information from 16 banks, including hsbc, Dresdner Kleinwort, Credit Suisse and Deutsche Bank, as well as accountants and law firms.

The sources said the Department of Justice had issued requests for information through the Southern District Court of New York and had ordered the banks to hand over all e-mails, telephone records and documents connected with Internet gaming firms such as 888 Holdings and Partygaming."

HSBC advised 888, owner of Pacific Poker, on its IPO. Credit Suisse advised the original shareholders of 888 on their strategic options before the flotation. Deutsche is co-broker to Party Gaming, while Dresdner advised on its public listing. Two of the United States' largest banks, Citigroup and Goldman Sachs, avoided involvement with internet gambling offerings due to questions of their legality.

While it is as yet unknown the thrust of these investigations, it may signal an attempt on the part of US authorities to begin proceedings against founders and investors of companies like Party Poker similar to those taken against Canadian Neteller founders Stephen Lawrence and John Lefebvre last week.