Payment processor busted -- what’s going on here?
 

Interesting article, though it is missing a lot of information



Michael Olaf Schuett has become the target of a federal investigation after it was discovered he had allegedly transferred over $70 million in online poker winnings to 23,000 mostly American citizens, since 2007.


Related article at which says

Schuett was not associated with any online poker sites in the United States. Instead, he dealt as a middle-man between US players and foreign-based gambling sites.

I’m confused. Is the implication here that a major online site (23k players!) is for some reason routing their payments to American players through this one guy? Why? Were the players aware of this? Was the site/sites? How did he successfully (well, until he got busted) position himself as a middle man – what was he doing for players that the sites could not do themselves? How did he get clients? What was his cut?

And most importantly -- what there anything in place for him to prevent him from folding up shop one day and leaving for the Bahamas with all the money he was “routing”?

I'm reading it as him being a payment processor, basically a one man operation. Those checks you receive in the mail don't come from "Full Tilt Poker" - they come from ______ Corp. He's owns.runs ______ Corp.

He's not the first payment processor to get busted and likely won't be the last.

What I wonder is if the Feds will pursue any of the 23k customers. I would THINK they didn't do anything wrong, but who knows..........

The guy acting as a payment processor sounds like a complete moron. The sad state of poker in America is that Major Sites (anyone know which sites?) would use an obvious idiot as a payment processor.

I find it pretty scary. So far, the site(s) using him have not been named. I have to wonder what the impact on the players will be. None? Minor delay? Or will any payments that were scheduled to go through him just not happen at all?

I assume that a major reputable site like Full Tilt or Star would make good, just as if my local bank manager emptied the vault one day, Bank of America wouldn’t leave me holding the bag. But that the idea that withdrawls are going through third-parties, who may or may not be reputable/competent, is disconcerting. Were the sites using him not running a huge risk?

For christ’s sake, legalize and tax already. Failure to do so only results in a greater volume and increasingly severe criminal activity.

The legal criminal complaint can be

I found the following interesting:

Attachment 2434

Bank tellers are not your friends. They keep notes on everything you say. Don't tell them shit.

The only online gambling sites listed on here are absolutepoker and ultimatebet. That brain trust over there at Cereus sure trusted a good one man criminal team for their payment processor.

Well, I have a check sitting here right now from FT that they emailed me about last week, saying it would bounce if I tried to cash it. Sure enough, it's from a company mentioned in the first article, located in Naples, FL.

So not only is FT is involved, but my name is tied to this idiot.

*sigh*

Another link:


I'm reading through the complaint now.

So random Fedex employees can just open your mail? wtf.

I am waiting on a check. So far they all have come out of Van Nuys, CA so hopefully my wife is not on any lists........

If a bank teller EVER asked me where my money was coming from, the first words out of my mouth would be "None of your damned business." The second would be a request to speak to the manager, the third if I was still stonewalled would be "I would like to close my account."

Of course, I'd probably say the first one to an IRS agent as well, but that's just me. ;)

Got my check today, postmarked from somewhere different,

probably not the best idea to post this stuff publicly

absolutely correct. It was thoughtless of me to post it a publicly accessed forum. I edited my post and yours.

First time I went to the bank to get $ for live poker I asked for $3,000 and stupidly told the lady it was for poker when she asked.

She tried to refuse to give it to me saying that if she didn't think it was in my best interest she didn't have to. I tried not to laugh and argued with her as politely as I could and she was just a complete bitch, saying I'm going to blow all my $ on some cards and that one day my luck will run out and asking if I have a backup plan and all this shit. I finally got annoyed and told her I have about 300k in ING and to mind her own business and that I don't keep $ at their bank because it gives like 2% less interest, she still refused to give me the $ so I had to talk with a manager and he was cool with it all. So he tells her to go get the $ and the dumb ass lady goes and purposely takes seriously 30 minutes to bring my 3k out. Never telling bank tellers a thing again.

He should have fired her on the spot. It's YOUR money.

One time the teller asked me what kind of company I worked for because she didn't recognize the name on the check. I told her it was from an online investment company that I consult with. :thumbsup:

Wow
 

It is pretty out of line for her to even ask. For her to then give you trouble about it is totally ridiculous. Agreed - that is a fire-able offense.