RCK IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND Northern Division UNITED STATES OF AMERICA, * Plaintiff, * vy, * civil No. $9,869,283.05 (ZipPayments), * Defendant. * 0000000... VERIFI PORFEITU! ‘The United States of America, through undersigned counsel, seeking forfeiture of $9,869,283.05 that is more particularly described and identified in the attached Affidavit in Support of Seizure Warrants and is hereinafter also referred to as "defendant property," respectfully presents to the Court the followin 1. This Court has jurisdiction over this forfeiture action pursuant to 28 U.S.C. sections 1345 and 1355, and 18 U.S.C, section 981. 2. Venue is proper in this Court pursuant to 28 U.S.C. section 1395 (b) 3. On or about July 2, 2008, the defendant property was seized from various accounts in the name of ZAPTIG Instantly Processed Payments Corp. dba ZipPayments.com, at Nevada State Bank by duly authorized agents of the Internal Revenue Service. 4. Once seized, the defendant property was placed in the custody of the Internal Revenue Service in the District of Maryland, where it remains. 5. The defendant property is money involved in the operation ofan illegal gambling business, and used in violation of 18 U.S.C. section 1955, and should be forfeited to the United States of America pursuant to 18 U.S.C. section 1955(d); it is also property involved in operating an illegal payment processing business in violation of 18 U.S.C. section 1960, and is property involved in money laundering transactions in violation of 18 U.S.C. sections 1956 and 1957, and should be forfeited to the United States of America pursuant to 18 U.S.C. section 9ai (a) (1) (A) 6. The forfeiture is based upon, but not limited to, the evidence outlined in the attached Affidavit of Randall $, Carrow, Special Agent, Internal Revenue Service, which is incorporated herein by reference. WHEREFORE, the plaintiff prays as follows: 1, That any persons having an interest in the above-described defendant property be cited to appear herein and answer the Complaint; 2. That a Warrant in rem issue to the United States Department of the Treasury commanding them to arrest the defendant property; 3, That Judgment of Forfeiture be decreed against the defendant property; 4. That upon Final Decree of Forfeiture, the United states Department of the Treasury be directed to dispose of the defendant property according to law; and5. That the plaintiff have such other and further relief as the case may require Respectfully submitted, Rod J. Rosenstein United States Attorney July 25, 2008 Richard C. Kat Assistant United States Attorney 36 South Charles Street Fourth Floor Baltimore, Maryland 21201 (410) 209-4800 Bar No. 06766 VERIFICATION I, Richard C. Kay, declare under penalty of perjury as provided by 28 U.S.C. 1746, that the foregoing Complaint or Forfeiture in rem is based on reports and information furnished to me by the United states Department of the Treasury and the Internal Revenue Service, and that everything contained therein is true and correct to the best of my knowledge and belief b+ Assistant United States AttorneyUNITED STATES DISTRICT COURT DISTRICT OF MARYLAND In the Matter of the Seizure of SEIZURE WARRANT ‘The contents of several CASE NUMBER: 4f-/fqS SK6- Nevada State Bank accounts. . “TO: Randall S. Caro, Speci! Age tna Revewe Serve, an any Authored Offer ofthe United Sas: ‘an AtRcavis having Seen rade before me by Randal S. Caro, Special Age, Intra Reverse Seve, Who has ‘reason to believe that in the State of Nevada and elsewhere there is now certain property which is subject to forfeiture o the United States, namely a the contents of several Nevada State Bank accounts specified on ATTACHMENT A. am sid that te fidavit xalsespeobble aust believe hat he propery 4 desea sujet lo seinur ane felon hat pounds eit fre sane of i sla warrant YOU ARE HEREBY AUTHORIZED tosszewiintn( 10) ys, thpopety specie, ering is warrant ang making he sez inte Gaytine-6:00 AM 0:00PM -levig a copy ofthis warata epee propery seed, nd prepare writen overay ofthe pope sized and romp rear thie warrant any US. Magia de, ete by a Issued June 25, 2008, a Baltimore, Maryland, by Hogorable Susan K. Gauvey { ‘Unhed States Magistrate Judge(LIS SKE ATTACHMENT A Nevada State Bank 750 East Waim Springs Road Las Vegas, Nevada 89109 The contents of eight Nevada State Bank accounts numbered as follows: 572016731 572016749 572016970 572016947 572017903 572017895 572016723, 572017002| “oz/ozsed— Taaworoncvita | corvoewanaaa anonacars sen GIF Wr bifed "9 30 An \SePH pr E coLa7T! Me eae saucer pode LEE #720) oor — 1g Sof 52/35 eSe20/b2r3- F bx Fb) 2 720/67 BY 2 S720 6 769 4 27307 6770 eo Baeance AaB 6 pnF A sR Re ABE % aP 20/ 7903 [CERTIFICATION "sear hts inventory ir tae nl dalled account ofthe prs ce property then by me on he warrant Niffhild, 5 (RRPr! Piefavet Subseries aan eae ber ne iC \ Hefe3UNITED STATES DISTRI DISTRICT OF MARYLAND In the Matter of the Seizure of “The conteats of several APPLICATION AND Nevada State Bank accounts. AFFIDAVIT FOR SEIZURE WARRANT. CASE NUMBER: Of -/£95 SK 6 [Randal S, Caro, Special Agen Intra Revene Servic, being duly sworn depose nd says 1 nave reason 10 Delve that hee now crn property inthe State of Nevada an ewes, which the sb of {orfeare othe United States, may sre rope nb ce the contents of several Nevada State Bank accounts specified on ATTACHMENT A, forfetable pursuant fo 18 U.S.C. seetion 981(a)(1A) because it constitutes property involved in ‘money transmitting transactions in violation of 18 U.S.C. section 1960, The fa a fing pee Czoe for insane of Seiare Warrant ac eso inthe aac Tavs Randall 8. Carrow Special Agent, Intemal Revenue Service Sworn before me, and subsrbed in my pretense on ous June 25, 2098 ot Balinore, Mayan Honorable cae - United States Magistrate Judge08-1995 SKE ATTACHMENT A Nevada State Bank 750 East Warm Springs Road Las Vegas, Nevada 89109 The contents of eight Nevada State Bank accounts numbered as follows 572016731 572016749 572016970 572016947 872017903 572017895 572016723 572017002.Oi (89S Shee Affidavit in Support of Seizure W: |, Randall S, Carrow, having been duly swom, do state and affimm as follows Agent Qualifications and Summary of the Investigation +, Lam a Special Agent with the Internal Revenue Service, Criminal Investigation Division (IRS Ci), and have been employed in this capacity since March of 1987. 1am currently assigned to the Baltimore Field Office of IRS Cl. My responsibilities include the investigation of possible criminal violations ofthe Internal Revenue Laws (Tite 26, United States Code), the Bank Secrecy Act (Tile 31, United State Code), the Money Laundering Control Act (Tile 18, United States Code) and related offenses. | have successfully completed the schools andor training provided at the Federal Law Enforcement Training Center in the areas of Criminal Investigation and Techniques. have attended various in-service and agency training seminars, with emphasis on the flow of ‘money from both legal and illegal businesses, and the utiization of tax haven counties and nominees, | have also participated in presentations to banking officials and employees, and business owners and employees regarding their duties and responsibiities under the Internal Revenue Laws and the Bank Secrecy Act. 2. Ihave personally conducted or assisted in numerous investigations of aleged criminal violations of the intemal Revenue Laws, Bank Secrecy Act, and the Money Laundering Control Act. | have also participated in the investigation of offshore Internet, gambling businesses operating in the United States. These investigations focused on individuals deriving income from both legal and ilegal sources. 3. __ | have participated in the execution of numerous search and seizure warrants, These included searches of residences, businesses and safe deposit boxes, ‘Materials sought and seized during execution of these warrants included records pertaining to the income and expenditures of businesses and individuals, currency, monetary instruments and assets. 4, Since approximately 2006, | have been investigating the operations of an Internet gambling website called Badog.com Bodog’), Bodog s owned and operated by Galvin Ayre, a citzen of Canada now living in Costa Rica. The physical infrastructure of Bodog is located variously in Vancouver, B.C., the Kahnawake Mohawk Reserve in ‘Canada, and Costa Rica. However, Bodog operates extensively in the United States, taking bets from U.S. gamblers over the phone and via the Intemet. 1 know that Bodog, com is now knowin as Bodogife.com (hereafter referred to as Bodog) 5. Because of various developments (Department of Justice prosecutions and new federal legislation), it has become more and more difficult for Intemet gambling web