The E-Sylum:  Volume 10, Number 18, May 6, 2007, Article 27

E-GOLD OWNERS INDICTED FOR ALLOWING SERVICE TO BE USED BY CRIMINALS

According to an article in the Washington Post, "The principal owners
of E-Gold Ltd., an online payment system where users convert currency
assets into equivalent amounts of precious metals, were indicted last
week for allegedly allowing the service to be used by criminals engaged
in financial scams and child pornography.

"The indictment names the company's co-founders -- Douglas L. Jackson,
of Satellite Beach, Fla., and Barry K. Downey, of Woodbine, Md., as well
as Reid A. Jackson, of Melbourne, Fla. They are charged with conspiracy,
money laundering and operating an unlicensed money transfer business.
The company has offices in Melbourne, Fla., but is incorporated in the
Caribbean island of Nevis.

"'The advent of new electronic currency systems increases the risk that
criminals, and possibly terrorists, will exploit these systems to launder
money and transfer funds globally to avoid law enforcement scrutiny and
circumvent banking regulations and reporting,' said James E. Finch, of
the FBI's Cyber Division."

"At the heart of the government's case are allegations that E-Gold
executives turned a blind eye to illegal activity on its networks,
activity that allegedly ranged from the transfer of proceeds garnered
from pyramid and investment scams to credit-card fraud and payments for
child pornography materials."

To read the complete article, see:
Full Story

  Wayne Homren, Editor

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