Youbet Reveals Seizure of IRG Funds
Updated: Monday, October 15, 2007 6:20 PM
Posted: Friday, October 12, 2007 11:27 PM
Youbet.com disclosed Oct. 12 that the federal government has seized $1.5 million in funds from three Nevada bank accounts affiliated with the company's off-shore entity, IRG.
In a four-paragraph filing with the U.S. Securities and Exchange Commission, Youbet said the seizure was part of an investigation by the U.S. Attorney's Office in Las Vegas into "whether certain customers of IRG have violated federal or Nevada state gambling laws, and whether employees of IRG were aware of the allegedly illegal wagering activity."
The development comes on the heels of Youbet reporting in an Oct. 9 SEC filing that an affiliate agency of the U.S. Department of Homeland Security had served a search warrant
on the company at its California headquarters in Woodland Hills.
In the most recent SEC filing, Youbet said it "will cooperate with the government to understand and, if our inquiry warrants, address any issues allegedly impacting our IRG business." It further said it would explore "all avenues" to recover the seized funds, including the potential filing of litigation.
The advance deposit wagering company also said it "anticipated" the seizure would not affect its ability to pay owed funds to bettors, tracks, and others, nor affect its ability to conduct business through its Oregon Racing Commission license.
Youbet.com said in its previous SEC filing that it believes it is not a "target" of the investigation and that the company is "cooperating with the U.S. government in (its) investigation."
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