Citadel Commerce has Millions Seized by Department of Justice

Well, it looks like our friends (and I use that term with all possible sarcasm) at the Department of Justice are at it again. This week, it was announced that they had seized $9.25 million in funds from British Columbia-based online payment processor Citadel Commerce. Most of this money, by the way, belongs to Internet gaming merchants.

The announcement came via a press release from ESI Entertainment Systems (of which Citadel Commerce is a principal subsidiary). According to their statement, all but $941,000 of the seized money came from merchants’ reserves. The remaining funds constituted Citadel Commerce’s own capital. These funds had been frozen in late April by Citadel Commerce’s financial transaction processor in the United States. But apparently that wasn’t good enough for the DOJ.

Citadel Commerce had been a leading third-party vendor in America for online poker players, right there with NETeller and FirePay. After the Unlawful Internet Gaming Enforcement Act went into effect in October 2006, FirePay stopped service in the U.S. market, but Citadel and NETeller kept right on doing business. Big mistake.

In January 2007, NETeller co-founders John Lefebvre and Steve Lawrence were arrested. After this turn of events, Citadel Commerce finally wised up and stopped offering their services to U.S. customers. But it was too late, as they had already incurred the wrath of the American government.

This news comes after the announcement of the DOJ’s indictment of seven individuals and four companies involved with online sports gambling. No doubt, the government is looking to send a clear message as the World Series of Poker draws near.

Citadel Commerce has Millions Seized by Department of Justice