Two men face dozens of charges and lengthy prison sentences after allegedly stealing people’s identities and racking up $3 million in profits by gaming the new user bonuses system on FanDuel in Connecticut.
The U.S. Attorney’s Office for the District of Connecticut and the Connecticut Department of Consumer Protection (DCP) detailed an alleged betting fraud scheme in which two men are charged with using 3,000 stolen identities to defraud FanDuel and other online betting operators.
In a pair of releases issued Feb. 6, authorities stated that a federal grand jury in New Haven returned a 45-count indictment charging the two 29-year-old Connecticut residents. The two men were arrested on Feb. 5 and each released on a $300,000 bond.
Scouring the dark web
As alleged in court and in a federal indictment, Amitoj Kapoor and Siddharth Lillaney conspired to defraud online gambling operators, primarily Mohegan Sun Casino in-state partner FanDuel, by signing up for accounts using personal identifying information of identity theft victims in Connecticut and elsewhere. The scheme, which continued from at least April 2021 to November 2023, worked by using the stolen information to take advantage of promotional bonuses offered to users who signed up for a new account or made a first bet.
The Attorney’s Office stated that Kapoor and Lillaney purchased the information of thousands of victims on the darknet and through the encrypted messaging service Telegram, and also obtained additional background information on other websites.
If Kapoor and Lillaney won a bet using a bonus bet, they transferred the winnings to virtual stored value cards, backed by a Federal Deposit Insurance Corporation (FDIC)-insured financial institution, which FanDuel allowed account holders to use for deposits and withdrawals. They then transferred the proceeds to bank and investment accounts.
Per the authorities, Kapoor and Lillaney allegedly used the information of around 3,000 victims to open FanDuel and other online gambling accounts and made themselves a profit of approximately $3 million. None of the documentation named the other gambling platforms involved. DraftKings, FanDuel and Fanatics are the three licensed online gaming platforms in Connecticut, with DraftKings affiliated with Foxwoods Casino and Fanatics Sportsbook partnered with the Connecticut Lottery, but unlicensed sites also offer wagering on the black market.
Wire fraud, money laundering charges
An investigation from the Attorney’s Office, the DCP and the IRS Criminal Investigation Division uncovered the scheme.
“Although this started as a gaming-related investigation, the scope of the alleged identity theft and fraud, with thousands of potential victims across the country, quickly became the primary focus of this investigation,” said DCP Commissioner Bryan T. Cafferelli. “First and foremost, we are a consumer protection agency, and protecting the public by preventing and rooting out fraud is our top priority.”
Kapoor and Lillaney are each facing 45 charges:
- One count of conspiracy to commit wire fraud and identity fraud, which carries a maximum term of imprisonment of five years
- 23 counts of wire fraud, with a maximum prison sentence of 20 years imprisonment per count
- Eight counts of identity fraud, punishable by up to 15 years in prison on each count
- Two counts of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of two years
- One count of money laundering conspiracy, an offense that carries a maximum term of imprisonment of 20 years
- 10 counts of money laundering, an offense that carries a maximum term of imprisonment of 20 years on each count.
Among those charges, wire fraud, money laundering conspiracy and money laundering each carry prison sentences of up to 20 years per count.
The charges have not yet been proven in court.
