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CG Technology Agrees to Pay $22.5 million fine

CG Technology Agrees to Pay $22.5 million fine

Federal prosecutors announced that CG technology, one of the largest sports book operators in the U.S., has agreed to pay .5 million in penalties and forfeiture to resolve criminal and civil investigations into illegal gambling and money laundering schemes.

According to Reuters, CG Technology LP had agreed to pay $16.5 million and enter into a non-prosecution agreement, three years after a former executive pleaded guilty to conspiring to participate in an illegal gambling business.

The U.S. Treasury Department’s Financial Crimes Enforcement Network separately announced a $12 million civil penalty against CG Technology, $6 million of which will be covered by the company’s criminal settlement.

The settlement is the result of an investigation that began in January 2013 and included U.S. attorneys in New York and Nevada, the U.S. Postal Service, the Internal Revenue Service and the New York City Police Department, authorities said in a press release.

Prosecutors said that the deal resolves a probe into the company’s past involvement in illegal gambling and money laundering schemes. CG Technology agreed to cooperate with the investigation and take remedial measures.

Las Vegas U.S. Attorney Daniel Bogden also said CG Technology admitted violating law by accepting messenger betting and out-of-state betting, and by laundering money.

According to the statement of facts released by the Justice Department along with the settlement, the scheme involved an illegal gambling and bookmaking operation, identified by authorities as the “Jersey Boys.” The group included an unnamed Florida bettor who owned a pick-selling service, an offshore sports book located in Costa Rica and executives at CG Technology’s Nevada sports book.

Former Cantor Gaming Vice President of Risk Management Michael Colbert previously pleaded guilty to federal conspiracy charges from the case and faces up to five years imprisonment, according to ESPN.com.