https://www.pointspreads.com/gambling-news/feds-halt-fanduel-money-laundering-scheme/

FBI arrested a New York man after he began a money laundering scheme with what he believed was drug money. Alex Bogomolny had ‘cleaned’ $20,000 for the FBI agents and had agreed to launder another $50,000 before his arrest. The FanDuel money laundering scheme began in 2023 when agents began meeting with Bogomolny.

The plan was to create accounts at different sportsbooks and casinos, particularly FanDuel. Money was frequently moved in and out of accounts. Several of the accounts mentioned in the criminal complaint by FBI Special Agent Seth Erlinger showed more than $100,000 transferred in and withdrawn. Bogomolny’s share of laundered money was 6% of the amount.

November 2023 was when things began to move in the FanDuel money laundering scheme. Bogomolny explained to undercover agents that ‘fresh’ accounts had deposit limits that slowed his laundering ability. He said that established accounts didn’t have the same type of limits and showed a screenshot of an account created in February 2022 that showed winnings of $883,000. On Dec. 4, 2023, he showed FBI agents an account created in 2021 with more than $2.7 million in winnings.

Not All Info Given on Procedures

The FanDuel money laundering scheme was complicated, involving bank wires, PayPal, Cash App, bank accounts, credit cards, and prepaid cards. The basic idea was that ‘dirty’ money would go into the accounts and legal gambling money would come out. The FBI criminal complaint didn’t detail how the money was wagered.

The 6% laundering fee would make it tough to show a profit betting both sides of the same game through FanDuel. Betting traditional picks and parlays is no guarantee of success. Bogomolny had to be sure not to lose all the funds he was given. Playing his best bets today consistently also wasn’t a guarantee to make money.

The most likely method was to bet the house maximum on one side and hope the odds moved. He could come back and bet the other way, giving himself middle opportunities on point spread bets and laying lower odds on moneyline bets.

Bogomolny in Legal Trouble Before

This isn’t the first time Bogomolny has found himself with legal problems. He was arrested by Immigration and Customs Enforcement in August 2013 while waiting to board a plane for Russia.

Bogomolny was living in the Florida Keys at the time and was detained for stealing a bicycle. While he was being questioned, Monroe County Sheriff’s deputies found several credit cards with different names in his possession. The credit cards were confiscated and deputies learned that he was opening accounts in the names of different people. He made a deal and pled guilty to some charges and only had to serve 180 days in jail, along with fines and probation.

His most recent arrest could have been worse, although it’s possible more charges could be forthcoming. Special Agent Erlinger’s criminal complaint also outlines the fraudulent withdrawal of nearly $500,000 from the PayPal business account of a fitness center.

The FBI found that a Trojan had been installed on the company’s computer. That was believed to be the source of the 78 transfers. Bogomolny’s credit card was the receiver of at least one of the money transfers. He was also seen withdrawing transferred money at ATMs near his home.