Online gambling operation busted near Magnolia, Texas

[clevfan]

06/18/2008
Online gambling operation busted near Magnolia
By Jamie Nash
Courier staff


MAGNOLIA – An investigation into an international illegal online gambling operation resulted in the arrest of three West Montgomery County residents Tuesday.

The Montgomery County Sheriff’s Office Special Investigations Unit arrested Justin Franciscotty, 37, his wife Ana Franciscotty, 30, and his sister-in-law Stephanie Uselton, 25, at a home on Durango Creek Drive in the area of FM 1488 and Honea Egypt Road. They were charged with second-degree felony money laundering, punishable by two to 20 years in prison and a fine of up to $10,000. The charges resulted from the alleged receipt of large amounts of illegally obtained currency through the U.S. Postal Service.

SIU Sgt. David Womack said officers converged on the residence Tuesday morning with a search warrant.

Franciscotty’s only means of income was an online gambling operation based in Costa Rica, Womack said. While he could not reveal the source of the information that launched the investigation, Womack said federal authorities also were involved and provided crucial information.

“The investigation revealed this residence was receiving large amounts of money through the postal service,” Womack said. “Once inside the residence, we found several packages from other parts of the United States, which at one point had several thousands of dollars inside.”

In one room of the home, Womack said, there were multiple TVs connected to satellite service, which investigators theorized was for watching several sporting events as part of Franciscotty’s alleged bookie operation. Womack said Franciscotty was a bookie for those wishing to illegally bet on all types of sporting events, from various ball games to horse racing.

“The domain name and setup was based in Costa Rica,” he said. “It’s like an offshore gambling operation, but you can’t operate offshore from the U.S.”

The SIU’s information indicates Franciscotty was the owner and operator of a very profitable illegal book-making operation.

“The suspect was stopped leaving this residence in his 2006 Cadillac Escalade and found with over $6,000 in currency in his pocket,” Womack said. “Once inside the residence, we found additional $10,000 in cash.”

Investigators also found a room receipt from the Ritz Carlton Cancun from April to September 2007, he said, with the bill totaling more than $44,000. There also were Rolex watches valued at $25,000 to $35,000 and diamond necklaces appraised at $20,000 with matching earrings.

Receipts were recovered for additional extravagant jewelry that was not found, he said.

“Information about the spending habits of these individuals will be forwarded to federal officials,” Womack said.

Three computers were seized from the residence, which investigators hope will yield additional answers about the alleged book-making operation.

According to the Montgomery Central Appraisal District, the home is the name of Uselton and her husband, who are Ana Franciscotty’s sister and brother-in-law. The home, built last year according to the MCAD, is about average in size and value for the neighborhood. More charges are pending against those arrested as well other residents who were not home Tuesday, Womack said.

[clevfan]

06/18/2008
Three arrested in money laundering scheme

By ALLEN JONES
hcnonline.com



Three people were arrested in Magnolia, accused of money laundering in connection with an international online gambling operation.

The Montgomery County Sheriff’s Office Special Investigations Unit arrested Justin Franciscotty, 37, Ana Franciscotty, 30, and Stephanie Uselton, 25, June 17. According to SIU Sgt. David Womack, the individuals, who were living in the 7000 block of Durango Creek Drive in Magnolia, were running the online operation which is based out of Costa Rica.

SIU investigators traced large amounts of money being delivered through the U.S. Postal Service to the Magnolia residence. Investigators found several packages from other parts of the United States, which at one point had several thousands of dollars inside, said Womack.

“Found in one room were several connections to satellite TV systems for the suspect to watch sporting events in regards to his book making operation,” Womack said.

Justin Franciscotty was arrested outside the residence, attempting to leave in his 2006 Cadillac Escalade, according to an incident report. More than $6,000 was discovered in the suspect’s pocket.

Inside the residence, SIU investigators found an additional $10,000. Investigators also discovered a receipt from a The Ritz Carlton Cancun, a luxury hotel and resort in Mexico, dated from April through September 2008 totaling more than $44,000.

Womack said information on the suspects’ spending habits will be forwarded to federal officials.

The suspects are accused of laundering funds of more than $1,500 but less than $20,000, a state jail felony. More arrests are pending, however, and the investigation is ongoing, according to Womack.

Under Texas Penal Code Chapter 34, it is illegal to engage in financial transactions in order to conceal the identity, source and destination of money. Illegal financial transactions can involve legal tender from the U.S. or any other country as well as electronic funds, personal checks, bank checks, traveler’s checks, money orders, investments and certificates of stock.

[clevfan]

June 19, 2008, 3:53AM

3 accused of running online gambling from home

2 of the Magnolia residents remain jailed in case charging trio with laundering in operation with ties to Costa Rica


By RENÉE C. LEE
Copyright 2008 Houston Chronicle

MAGNOLIA — Three people have been arrested on accusations of running an international online gambling operation from a west Montgomery County home, authorities said.

Montgomery County sheriff's investigators arrested Justin Franciscotty, 36, Ana Franciscotty, 30 and Stephanie Uselton, 25, on Tuesday during a raid at their Magnolia residence in the 7000 block of Durango Creek. They were charged with money laundering, authorities said.

A months-long investigation of the gambling operation with ties to Costa Rica revealed that large amounts of money were being sent to the Magnolia address through the postal service, authorities said.

Investigators stopped Justin Franciscotty as he was leaving the house in his 2006 Cadillac Escalade.

He had $6,000 in cash in his pocket, they said.

Inside the house, investigators found another $10,000The information obtained during the investigation will be forwarded to federal authorities.

Investigators said the case is ongoing and that more arrests are pending.

Justin and Ana Franciscotty remained in the Montgomery County Jail on Wednesday.

His bail is $50,000 and her bail is $5,000.

Uselton has been released from jail.