Chad Elie Pleads Guilty to Fraud in Black Friday Case

By Maria McCoyGoogle

Chad Elie, 32, one of eleven defendants named in last year’s “Black Friday” indictment has pled guilty to fraud charges in New York City.

As part of his plea, Elie acknowledged that he had misled one bank into processing online casino games revenue by pretending that the money being added to the account came from businesses unrelated to gaming. He admitted that when the bank later inquired about the cash he denied the account was being used for online casino game revenue.

Elie faces up to a year in prison based on the arrangement made with Manhattan prosecutors.  He stated at the hearing, “I knew that my conduct was wrong.” Elie pleaded guilty to conspiracy to commit bank fraud and to operating an illegal online casino games business. He also agreed to pay $500,000 as part of the agreement.

The plea came as Elie was scheduled to go to trial on April 9th along with former bank executive John Campos. Campos has continued to assert that he is innocent of all charges brought against him. A prosecutor stated that they will likely know within a few days whether Campos decides to move ahead with the trial.

The prosecution is seeking $3 billion in money laundering penalties and forfeiture from PokerStars, Full Tilt Poker and Absolute Poker. Elie admitted to acting on behalf of all three organizations as a payment processor between 2008 through early 2011.

Prosecutors filed charges under the 2006 Unlawful Internet Gambling Act, which makes it a crime for banks and other companies to knowingly accept payments related to illegal online casino gaming. 

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