Report: Cantor targeted in money laundering investigation

Oct 29, 2013 |
By: Jon Campbell
Cantor Gaming is allegedly being investigated by federal and state authorities for laundering illegal gambling proceeds according to "people familiar with the matter", says a report from Monday in the Wall Street Journal .

Reports earlier in October alleged Cantor Gaming Chief Lee Amaitis and Cantor Gaming were being investigated for knowingly taking illegal sports bets.

If true, the probe follows a guilty plea to fraud conspiracy by former VP of risk management at Cantor, Michael Colbert. Colbert admitted to accepting illegal wagers and participating in an illegal gambling ring that included the arrest of 24 others. The plea came to light following the release of sealed documents in late September and Colbert is said to be cooperating with authorities.

Cantor Fitzgerald is denying the investigation, according to reports, and a spokesman told the WSJ "that Colbert’s wrongdoing, to which he has pleaded guilty, was his alone and did not extend to other executives…or the company as a whole.”

A federal law requires companies to report all cash transactions of greater than $10,000, which Cantor says it has always complied with.

The source says the list of those investigating Cantor includes the U.S. attorney’s office in Brooklyn, the U.S. Postal Inspection Service, the Internal Revenue Service, the Treasury Department’s Financial Crimes Enforcement Network, the inspector general of the Federal Reserve Board, and the Nevada Gaming Control Board previously said it is investigating the sports betting operation.

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