IS SEALS WITH CLUBS DONKDOWN??? (Update: Micon charged with a felony in Nevada)

[Dan Druff]

Believe it or not, the DOJ and IRS are very separate from other law enforcement bodies (and each other), and while it seems obvious that they're the next step, they probably aren't.

The DOJ only seems to care about money in these situations. As the money Micon made is peanuts to the DOJ, they aren't going to touch him in all likelihood.

IRS is a little more possible, but you would be surprised how many slam dunk IRS cases there are which could have spawned from local criminal cases, but never end up going that way. It's like the IRS has their heads up their asses and don't seem look for things like this. And the local agencies tend to only give a shit about their own little world, and don't feel a need to move it up the chain of justice.

As others have said here, Micon's biggest problem right now is the fact that he fleed the country and continued committing the crime, rather than shutting down and taking the "I didn't realize this was illegal" stance, which could have been successful in the hands of a good attorney.

[Dan Druff]

Doubt anything newsworthy was added in press conference. AG Laxalt just getting some face time. Yet he doesn't give mention in these conferences to just any case.

There was one tidbit.

Your turn to act Micon.

Gaming agents infiltrated Bitcoin poker site to bring criminal case
http://www.reviewjournal.com/news/la...-criminal-case


By DAVID FERRARA
LAS VEGAS REVIEW-JOURNAL
Updated 12:04pm

A special agent with the Nevada Gaming Control Board infiltrated a Bitcoin-fueled poker website to help launch what authorities on Tuesday said was the first state-level criminal prosecution of illegal online poker.

“The industry must be licensed and controlled,” Attorney General Adam Laxalt said at a news conference.

An arrest warrant was issued against Bryan Micon in Las Vegas Justice Court on Monday on one count of operating an unlicensed interactive gaming system.

Laxalt added that the charge, which carries a penalty of up to 10 years in prison and a $50,000 fine, marks the first prosecution of a poker site that used the digital currency.

“Defending Nevada’s worldwide reputation as the gold standard of gaming integrity is a paramount concern to tens of thousands of Nevadans employed by the industry and the 41 million tourists who visit the state each year,” Laxalt said.

Court papers filed Monday state that Micon operated Seals with Clubs, which accepted Bitcoin digital currency, between March 1, 2014 and Feb. 9, 2015 “without first procuring and thereafter maintaining in effect the required licenses.”

Seals with Clubs was promptly shut down, but Micon then moved to Antigua and launched a new Bitcoin site, SwCPoker.eu.

Authorities said Micon’s last known whereabouts were in the Caribbean island nation.

I can already tell you what "infiltrated" means in this case.

It's the standard way they go after these illegal online gambling sites.

They get one of their agents to create an account and make a real money deposit. The site accepts it. The agent then uses that money to gamble on the site briefly. They enter it into evidence. They now have proof that the site was conducting illegal gambling business with residents of that state.

This is even done at the level of federal crimes, to establish jurisdiction. For example, this was done by the US Attorney's Office in the Southern District of New York against the sites they busted on Black Friday, where an agent located in New York (or a cooperating witness there) made a deposit and played while it was officially being recorded.

This makes the case a lot more airtight than simply theorizing that players were depositing and playing from that particular state.

[Dan Druff]

BTW this "infiltration" is why sites like Bovada don't allow new accounts from Nevada, Delaware, or New Jersey. They want to make it as tough as possible on law enforcement bodies in these states to generate usable evidence against them.

Micon hung his hat on the "No dox necessary, anyone can play, I don't care who you are or where you're from" concept, which seems cool and rebellious on the surface, but is also extremely reckless in today's legal environment.

[shortbuspoker]

My main point about the DOJ was that they may help the NGC in getting Micon back into the country. I could also see a scenario where the DOJ might offer Micon some sort of deal if he were to cooperate in helping them with bitcoins in relation to other peoples criminal activity online. I'm almost 100% sure the IRS will try to get their piece of the money that he made and didn't pay taxes on.

[JoeD]

They are very limited as to how much they can "stick it to him". This was a completely non violent, white collar, low level "crime". The defendant has zero criminal record. There are specific sentencing guidelines, that prob fall in between probation and a very small amount of jail time in this case. They really don't have much to work with in tryi g to be dicks about it. Unless Micon refuses any deal and won't have it.

But as I said before a plea takes Micon's cushy existence and destroys it. So he might just be dumb enough to fight it or stay on the run.

It would be interesting to find a history of cases the Nevada Gaming has brought to trial over the last five years to a get sense of how hard they come down on people. Also, because this is a case Nevada has never seen before, we have no idea what charges they are going to try to go after him with. He was basically running an online gambling site from the state of Nevada which more less allowed people to deposit a currency with value on it. I would be surprised if that element was overlooked. You may be right but i think there is going to be a lot more to all this.

This was a recent case that I thought of

http://www.bettingtalk.com/case-ex-l...ert-dismissed/

This guy ended up pleading guilty to 1 federal crime in a New York Court and Nevada Gaming dropped its State law case. The sentencing was sealed so it's unclear what the punishment was.

I still think Micon has a shot at some leniency if he cuts out the anti-government bs, shuts down SWC asap, comes back to NV, and works with his lawyer. As far as I know, Micon has no prior criminal history, he has a young child and wife. Pretty sure he can get off for far less than 10 years.

Just my opinion of course.

[Dan Druff]

My main point about the DOJ was that they may help the NGC in getting Micon back into the country. I could also see a scenario where the DOJ might offer Micon some sort of deal if he were to cooperate in helping them with bitcoins in relation to other peoples criminal activity online. I'm almost 100% sure the IRS will try to get their piece of the money that he made and didn't pay taxes on.

I disagree on most of this.

The DOJ likely does not want or need Micon's help. He is a bitcoin fanatic, but not a major player in the illegal bitcoin site underworld, as far as I know. So I don't think he really would have much to offer them, in terms of catching bigger fish.

Don't be so sure about the IRS. It is actually fairly uncommon that they piggyback their own complaint onto a different jurisdiction's criminal case, unless they were originally involved in the investigation. Also, from what I can tell, Micon hasn't withdrawn all that much money. He lived in a (fairly cheap) rented house in Vegas, he didn't drive a flashy car, and generally didn't live a high-flying lifestyle. Even if he's holding a lot in bitcoin, I'm pretty sure he moved that immediately after getting his equipment seized, so there's probably little indication of what he has or had. Bottom line is that he's not a big fish for the IRS, and they generally don't troll local/state cases for people to audit. They probably should, but they don't.

[GrenadaRoger]

Believe it or not, the DOJ and IRS are very separate from other law enforcement bodies (and each other), and while it seems obvious that they're the next step, they probably aren't.

IRS is a little more possible, but you would be surprised how many slam dunk IRS cases there are which could have spawned from local criminal cases, but never end up going that way. It's like the IRS has their heads up their asses and don't seem look for things like this. And the local agencies tend to only give a shit about their own little world, and don't feel a need to move it up the chain of justice.

You are assuming Micon did not report his income from Seals with Clubs (a fair assumption)...but if he did report, no IRS case...

the tax law calls for you to report and pay tax on income from illegal activities, and your return can not be used by other enforcement agencies as evidence for criminal charges or investigations...the law is that way because the Congress made it that way (in part, I believe, because members of congress have a lot to hide)...

one lone kind of co-operation between the IRS and law enforcement is when a drug bust occurs, and an IRS criminal investigations unit employee will be called to the scene to count the property recovered and prepare a proposed tax return immediately, thus applying tax on that presumed illegal income

[Dan Druff]

I don't see him getting 10 years. Recall that Chad Elie only got 5 months for all of his payment processing for Full Tilt and Stars. Yes, that was a federal case and not Nevada Gaming (who is probably nastier and more likely to want to make an example of someone), but still an example of the huge gap between potential sentencing and actual sentencing.

At the same time, I doubt they just let him skate away with zero jail time and a moderate fine.

I could see a plea deal going something like this:

- Give up all money he earned from Seals

- Shut down Swcpoker

- 5 years probation

- Agreement not to own, work for, or represent any form of online gambling website, including those involving bitcoin

- Return to US immediatley and serve 6 months in state prison


The problem with the above is that it essentially shuts down (for good) the one thing that was earning a lot of money for Micon.

So I don't see him being willing to give that up.

He already thought about that and made that decision on February 11, when he left the country and started swcpoker. He was very aware that doing so would probably cause further harm to his rapidly worsening legal situation, but he chose that harm over giving up his one real form of income.

Or, to put it bluntly, he looked at himself in the mirror and said, "If I shut down Seals and quit running bitcoin poker sites for good, what the fuck am I gonna do for money?"

[sonatine]

whether or not he gets 10 years is entirely up to him.


fuck with the bull, you get 10 years worth of horns.

[NaturalBornHustler]

They are very limited as to how much they can "stick it to him". This was a completely non violent, white collar, low level "crime". The defendant has zero criminal record. There are specific sentencing guidelines, that prob fall in between probation and a very small amount of jail time in this case. They really don't have much to work with in tryi g to be dicks about it. Unless Micon refuses any deal and won't have it.

But as I said before a plea takes Micon's cushy existence and destroys it. So he might just be dumb enough to fight it or stay on the run.

What are the specific sentencing guidelines you are referring to?

Every case usually has a "formula" they (prosecutors/judge) use to determine where sentences should fall, taking into account past record, current offense, penalties available for said crime Etc. It is typically a point system they add up, and in Micon's case there isn't much to add considering his clean record, non violent past.

Of course the guidelines aren't always adhered to, but usually the sentence will be pretty close to what the range adds up to going off the point system.

[NaturalBornHustler]

Believe it or not, the DOJ and IRS are very separate from other law enforcement bodies (and each other), and while it seems obvious that they're the next step, they probably aren't.

The DOJ only seems to care about money in these situations. As the money Micon made is peanuts to the DOJ, they aren't going to touch him in all likelihood.

IRS is a little more possible, but you would be surprised how many slam dunk IRS cases there are which could have spawned from local criminal cases, but never end up going that way. It's like the IRS has their heads up their asses and don't seem look for things like this. And the local agencies tend to only give a shit about their own little world, and don't feel a need to move it up the chain of justice.

As others have said here, Micon's biggest problem right now is the fact that he fleed the country and continued committing the crime, rather than shutting down and taking the "I didn't realize this was illegal" stance, which could have been successful in the hands of a good attorney.

Like you said it is all about money. The money Micon made off this is peanuts with what they usually deal with. If there are no assets to sieze, there is no point in prosecuting the case. They could care less about "justice" they just want to get as much money as possible. Period.

[Tony]

I don't see him getting 10 years. Recall that Chad Elie only got 5 months for all of his payment processing for Full Tilt and Stars. Yes, that was a federal case and not Nevada Gaming (who is probably nastier and more likely to want to make an example of someone), but still an example of the huge gap between potential sentencing and actual sentencing.

At the same time, I doubt they just let him skate away with zero jail time and a moderate fine.

I could see a plea deal going something like this:

- Give up all money he earned from Seals

- Shut down Swcpoker

- 5 years probation

- Agreement not to own, work for, or represent any form of online gambling website, including those involving bitcoin

- Return to US immediatley and serve 6 months in state prison


The problem with the above is that it essentially shuts down (for good) the one thing that was earning a lot of money for Micon.

So I don't see him being willing to give that up.

He already thought about that and made that decision on February 11, when he left the country and started swcpoker. He was very aware that doing so would probably cause further harm to his rapidly worsening legal situation, but he chose that harm over giving up his one real form of income.

Or, to put it bluntly, he looked at himself in the mirror and said, "If I shut down Seals and quit running bitcoin poker sites for good, what the fuck am I gonna do for money?"

He would get jail time, no way he gets out of it. If Probation is the max fine there is no dis-incentive for other gaming sites. In theory he could reside in Antguia the rest of his life, that is like prison.

[Dan Druff]

Believe it or not, the DOJ and IRS are very separate from other law enforcement bodies (and each other), and while it seems obvious that they're the next step, they probably aren't.

The DOJ only seems to care about money in these situations. As the money Micon made is peanuts to the DOJ, they aren't going to touch him in all likelihood.

IRS is a little more possible, but you would be surprised how many slam dunk IRS cases there are which could have spawned from local criminal cases, but never end up going that way. It's like the IRS has their heads up their asses and don't seem look for things like this. And the local agencies tend to only give a shit about their own little world, and don't feel a need to move it up the chain of justice.

As others have said here, Micon's biggest problem right now is the fact that he fleed the country and continued committing the crime, rather than shutting down and taking the "I didn't realize this was illegal" stance, which could have been successful in the hands of a good attorney.

Like you said it is all about money. The money Micon made off this is peanuts with what they usually deal with. If there are no assets to sieze, there is no point in prosecuting the case. They could care less about "justice" they just want to get as much money as possible. Period.

That's true for the DOJ and probably the IRS.

Not the Nevada Gaming Commission. I believe the NGC really wants to make a point and example out of this. They aren't necessarily out for money.

[sonatine]

NGC is presenting this like a marquis case, in no uncertain terms.

[NaturalBornHustler]

I don't see him getting 10 years. Recall that Chad Elie only got 5 months for all of his payment processing for Full Tilt and Stars. Yes, that was a federal case and not Nevada Gaming (who is probably nastier and more likely to want to make an example of someone), but still an example of the huge gap between potential sentencing and actual sentencing.

At the same time, I doubt they just let him skate away with zero jail time and a moderate fine.

I could see a plea deal going something like this:

- Give up all money he earned from Seals

- Shut down Swcpoker

- 5 years probation

- Agreement not to own, work for, or represent any form of online gambling website, including those involving bitcoin

- Return to US immediatley and serve 6 months in state prison


The problem with the above is that it essentially shuts down (for good) the one thing that was earning a lot of money for Micon.

So I don't see him being willing to give that up.

He already thought about that and made that decision on February 11, when he left the country and started swcpoker. He was very aware that doing so would probably cause further harm to his rapidly worsening legal situation, but he chose that harm over giving up his one real form of income.

Or, to put it bluntly, he looked at himself in the mirror and said, "If I shut down Seals and quit running bitcoin poker sites for good, what the fuck am I gonna do for money?"

I think this is 100% accurate from the sentence to why he won't do it. And if he got 6 mths in state prison there is a good chance he serves it all on home detention, and never even sees the inside of a jail cell. If he actually has to go to CCDC he only serves a few months if that and gets out.

His problem is going to be the "rules" once he gets out. Our weed smoking anti gov crusader will now be in a virtual prison for 5 years answering to the very faction he despises...the government.

[abrown83]

My main point about the DOJ was that they may help the NGC in getting Micon back into the country. I could also see a scenario where the DOJ might offer Micon some sort of deal if he were to cooperate in helping them with bitcoins in relation to other peoples criminal activity online. I'm almost 100% sure the IRS will try to get their piece of the money that he made and didn't pay taxes on.

I disagree on most of this.

The DOJ likely does not want or need Micon's help. He is a bitcoin fanatic, but not a major player in the illegal bitcoin site underworld, as far as I know. So I don't think he really would have much to offer them, in terms of catching bigger fish.

Don't be so sure about the IRS. It is actually fairly uncommon that they piggyback their own complaint onto a different jurisdiction's criminal case, unless they were originally involved in the investigation. Also, from what I can tell, Micon hasn't withdrawn all that much money. He lived in a (fairly cheap) rented house in Vegas, he didn't drive a flashy car, and generally didn't live a high-flying lifestyle. Even if he's holding a lot in bitcoin, I'm pretty sure he moved that immediately after getting his equipment seized, so there's probably little indication of what he has or had. Bottom line is that he's not a big fish for the IRS, and they generally don't troll local/state cases for people to audit. They probably should, but they don't.

I have a friend who works for the DOJ doing extraditions.

She has to process them both ways, us requesting somebody and processing applications from foreign entities. By far and away most of her work is processing states requests for extradition from foreign countries.

Nevada will almost assuredly request it in this case. Any state can make the request, the DOJ reviews the request and determines if it falls inside our treaty if we have one. Then they make the request to the country and sometimes we go pick the person up, sometimes they pick the person up and fly them to us.

[Dan Druff]

lol @ the tinfoil hat wearers in the 2+2 thread.

They're actually citing Alex Jones there. And not in a sarcastic or mocking fashion.

[DRK Star]

Hi Bryan!

[chinamaniac]

Even if somehow his attorney is GOD and could get him off because of some loophole or could prove that Bitcoin poker is totally fine what would probably still sink him is possible evidence on his electronic devices.

Like if someway what he was doing was totally legit because of some type of bitcoin loophole who the hell knows what kind of "paper trail" he left on his PCS/phones/tablets etc.... And I am sure they are going to go to town making sure they get every last shred of anything he has typed / sent and received

[TheXFactor]

I don't see him getting 10 years. Recall that Chad Elie only got 5 months for all of his payment processing for Full Tilt and Stars. Yes, that was a federal case and not Nevada Gaming (who is probably nastier and more likely to want to make an example of someone), but still an example of the huge gap between potential sentencing and actual sentencing.

At the same time, I doubt they just let him skate away with zero jail time and a moderate fine.

I could see a plea deal going something like this:

- Give up all money he earned from Seals

- Shut down Swcpoker

- 5 years probation

- Agreement not to own, work for, or represent any form of online gambling website, including those involving bitcoin

- Return to US immediatley and serve 6 months in state prison


The problem with the above is that it essentially shuts down (for good) the one thing that was earning a lot of money for Micon.

So I don't see him being willing to give that up.

He already thought about that and made that decision on February 11, when he left the country and started swcpoker. He was very aware that doing so would probably cause further harm to his rapidly worsening legal situation, but he chose that harm over giving up his one real form of income.

Or, to put it bluntly, he looked at himself in the mirror and said, "If I shut down Seals and quit running bitcoin poker sites for good, what the fuck am I gonna do for money?"

Chad Elie got only 5 months because he accepted a plea deal. If he took his case to trial he would've faced 5 to 10 years in prison.

This is why Micon's attorney would recommend he return to Nevada. They would offer him a plea deal that would give Micon maybe a year or less in prison.

I'm not sure that the state of Nevada can ban Micon from owning SwcPoker and using Bitcoin but the U.S. government could.

At this stage, the FBI and IRS are not involved yet but a couple years from now they probably will be.