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Old 11-15-2006, 03:02 PM
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Betting Ring Busted in Queens

DISTRICT ATTORNEY
QUEENS COUNTY
125-01 QUEENS BOULEVARD
KEW GARDENS, NEW YORK 11415-1568
Release # 236-2006
www.queensda.org
RICHARD A. BROWN

DISTRICT ATTORNEY
FOR IMMEDIATE RELEASE CONTACT: QDA PRESS OFFICE
WEDNESDAY, NOVEMBER 15, 2006 (718) 286-6315
NYPD/DCPI
(646) 610-6700


27 INDIVIDUALS AND 3 CORPORATIONS INDICTED IN $3.3 BILLION INTERNATIONAL INTERNET GAMBLING ENTERPRISE

Landmark Prosecution Results in Arrest of Website Designer, Costa Rica-based Internet Company and dozens of Individuals in Las Vegas, Florida, New Jersey and New York; District Attorney Initiates $500 Million Asset Forfeiture Case Queens District Attorney Richard A. Brown, joined by Police Commissioner Raymond W. Kelly, today announced the indictment of twenty-seven individuals and three corporations on charges of unlawfully operating a highly sophisticated online gambling operation in Queens County and elsewhere in the world that booked more than $3.3 billion in wagers over a 28-month period on a wide variety of sporting events - ranging from horse-racing, football, baseball, basketball and hockey to NASCAR, PGA golf and professional tennis, among others.


District Attorney Brown said, "Internet gambling is a multi-billion dollar worldwide industry that for too long has operated with impunity. Today's case represents the first time Internet gambling charges have been brought against anyone in this country since President Bush signed into law last month the Unlawful Internet Gambling Enforcement Act which prohibits American online gamblers from using electronic funds transfers, credit cards and checks in placing bets with gambling sites worldwide. The case also marks the first time that a web designer and an offshore based Internet company have been charged with directly participating in a criminal enterprise. In addition, the $500 million asset forfeiture case commenced against the defendants is among the largest such cases ever filed."


The District Attorney continued, "The defendants are accused of running a tightly knit and an incredibly lucrative - and illegal - global gambling operation. It is alleged that they were as savvy and adept in the use of computer technology as they were proficient in the art of secreting and laundering untold millions of dollars in unlawfully earned proceeds through casinos, shell corporations and bank accounts in a variety of locations around the globe, including Central America, the Caribbean, Switzerland, Hong Kong and elsewhere. So massive was the enterprise that only with the assistance of federal law enforcement, police authorities in sister states and other nations have we been able to bring these defendants to justice."


Commissioner Kelly said, "New York City detectives and Queens prosecutors, with extraordinary assistance from the FBI, have smashed the largest illegal gambling operation we have ever encountered."
A 33-count Enterprise Corruption indictment filed in Queens County Supreme Court charges that the gambling ring promoted illegal sports betting in Queens County and elsewhere and that the defendants were involved with gambling wire rooms in both Miami and St. Maarten. Twenty of the defendants are also being sued civilly and have been named as respondents in a historic $500 million civil forfeiture action filed in Queens Supreme Court by the District Attorney's Special Proceedings Bureau which alleges that they engaged in a criminal enterprise that promoted illegal gambling activities and generated illegal wages.


District Attorney Brown said that detectives assigned to the New York City Police Department's Organized Crime Control Bureau, as well as federal agents throughout the country arrested the defendants
over the past few days on charges of Enterprise Corruption - a violation of New York State's Organized Crime Control Act - as well as Money Laundering, Promoting Gambling, Possession of Gambling Records
and Conspiracy.


District Attorney Brown said that the investigation leading to today's indictment began in July 2004 when NYPD officers assigned to the Queens Major Case Squad and the Queens Narcotics District developed information about an illegal betting ring and began a joint investigation with the District Attorney's Organized Crime and Rackets Bureau. The investigation included physical surveillance, intelligence information and court-authorized electronic eavesdropping on nearly thirty different telephones intercepted tens of thousands of conversations.
According to the indictment, between July 14, 2004, and November 2, 2006, the thirty defendants conspired to acquire money illegally through the operation of an unlawful gambling enterprise involving the use of an Internet website.

The indictment also alleges that the ring used a non-traditional "wire room" in the form of an off-shore, Internet-based gambling service used by bettors and runners to actually place their wagers. It is alleged that the ring used the off-shore wire room to maintain the gambling accounts of numerous runners and bettors through the Internet website in an effort to evade law enforcement detection through traditional methods.


Law enforcement crackdowns on traditional mob-run wire rooms have led to the use by illegal gambling rings of off-shore gambling websites where action is available around the clock. Bettors can click on an off-shore gambling website over the Internet and be assigned individual login codes and passwords.

Their wagers and win-loss amounts are recorded in "sub-accounts" maintained in the accounts of "runners" and "agents." These gambling websites typically store their information on computer servers outside the United States - such as in Costa Rica - and "bounce" their data through a series of server nodes in an effort to evade law enforcement.
In carrying out the alleged conspiracy, it is charged that Primary Development, Inc., and its chief executive officer, Maurice Freeman, developed a sports betting website - www.playwithal.com - specifically tailored to meet the needs of James W. Giordano and his son-in-law, Daniel B. Clarin. The website - which is literally a computerized betting sheet - is known as "Playwithal Sportsbook" and is advertised as an "innovative sports gaming company." Playwithal is accessible both online and via an "800" toll-free telephone number. Although the web page is hosted in Tampa, Florida, its web servers and wire room terminal are situated outside the United States - on St. Maarten in the Caribbean or, more recently, in Costa Rica.

In furtherance of the alleged conspiracy, Prolexic Technologies, Inc., allegedly provided security of Playwithal's web servers by screening bettors' Internet protocol addresses to search for viruses or tracking
programs that could be used to hack into Playwithal's servers. Digital Solutions, S.A., a company incorporated under the laws of Costa Rica, and its American counterpart, D.S. Networks, S.A., Inc., allegedly provided the site with its servers, data and software.


The indictment charges that Giordano was the "Bookmaker" and boss of the enterprise who controlled and oversaw the entire operation. The indictment further charges that Clarin worked as the "controller" and was responsible for managing the day-to-day operations and handling bettor disputes and accounting discrepancies, as well as managing account information of the various runners and bettors. According to the indictment, Giordano's wife, Priscilla Ann Giordano, and their daughter, Melissa Clarin - who is Clarin's wife - worked as "financial officers" and facilitated the transfer of monetary instruments representing gambling proceeds through accounts under their control in financial institutions overseas and elsewhere.


The indictment also charges that five defendants - Frank Lobascio, Frank LaMonica, Ralph Piccirilli, Monte Weiner, and Steven C. Tarantino - worked as "money collectors" and were responsible for exchanging, distributing, delivering and transferring gambling proceeds between members of the
organization, including to and from agents/runners. Some of the collectors were also allegedly involved in exchanging, distributing, delivering and transferring gambling proceeds through various financial institutions.


The indictment additionally charges that:
. Robert H. McGrath worked as a "clerk" and managed the daily operations of the website, including regularly updating and adjusting different point spreads for sporting events; . John M. Ducato, Arnold Fuchs, and Conrad J. Panza worked as "agents/runners" and were responsible for soliciting new bettors to the organization, maintaining existing bettor relationships and meeting with bettors to collect gambling losses and payout winnings;
. Donald L. Clarke, Frank Falzarano, Eric L. Weiner, Stuart J. Kempner, Ellen S. Adeline, Rocco J. Renelle, Daniel Corrar, Lawrence Samele, Nicola Cavacini, Guy Gemore, Peter Mastrandrea and Thomas Gehlhaus worked as "distributors," who were, in effect, "super-agents/super runners" as each distributor had several subordinate agents/runners reporting directly to them;
. Louis Andrew Moed worked as an "accountant" and provided assistance and counseling to the organization with regard to the transfer of monetary instruments representing gambling proceeds.
According to the indictment, after a bettor placed a bet either through the website or through one of the organization's toll-free telephone numbers, the bettor collected his winnings or paid any losses by interacting with an agent/runner either in person or through interstate commerce. The agent/runner, in turn, met with a money collector to turn over any gambling debts the agent/runner collected from his bettors and/or to receive any money from the money collectors that the agent/runner's bettors won. The money collector then allegedly met with a distributor to turn over any gambling proceeds they may have collected and also to receive any winnings that the collector would then pass on to the agent with the winning bettor.


The Bookmaker, financial officers, accountant and other members of the organization then allegedly conducted various financial transactions with the gambling proceeds to, in part, conceal or disguise the nature, location, source or control of the gambling proceeds or to avoid any transaction reporting requirement imposed by law.


The individual defendants, who were arraigned late yesterday before Queens County Supreme Court Justice Stephen Knopf, have been variously charged with Enterprise Corruption, a Class B felony punishable by a minimum of five years and a maximum of 25 years in prison; Grand Larceny in the Second Degree, a Class C felony punishable by up to 15 years in prison; and Possession of Gambling Records in the First Degree, Promoting Gambling in the First Degree and Conspiracy in the Fourth Degree, all Class E felonies, each punishable by up to four years in prison. The corporate defendants face fines of up to $10,000 or double the amount of their illegal gains.


In addition to the criminal charges, a number of search warrants were executed which resulted in the seizure of gambling records, computers and hundreds of millions of dollars in real and personal property -
including four Manhattan condos, millions of dollars in cash, tens of thousands of dollars worth of casino chips from the Bellagio, a rare art collection, jewelry, gold coins, and a football signed by the 1969
championship New York Jets following their victory in Super Bowl III.


District Attorney Brown expressed his appreciation to the Federal Bureau of Investigation Special Agents Robert Willingham, Christopher Mangiaracini, Stuart Reynolds and Supervisory Special Agent Paul
Sciolino of the Miami Office, Special Agent Dan Coxon of the Las Vegas Office and Special Agent Rick Orr of the New Jersey Office; the United States Attorney's Office for the Southern District of Florida; Special Agents James Taylor and Olin Pierce of the Nevada Gaming Control Board Enforcement Division, the Miami-Dade Police Department, the Las Vegas Metro Police Department, the New Jersey State Police and the Connecticut State Police.


The investigation was conducted by Detectives Gerard McNally, Joseph Chimienti and Luis Flores of the New York City Police Department's Organized Crime Investigation Division under the supervision of Lieutenant Jack Iacovou and Deputy Inspector Brian O'Neill. The seizure of assets was conducted by Detective John Tansey and Sergeant Steve Scalzo of the Asset Forfeiture Unit under the supervision of Lieutenant William Hermance . Both the investigation and seizure of assets are under the overall supervision of Chief Anthony Izzo of the Organized Crime Control Bureau. Also involved in the investigation were Detective Steve Kim and former Detective Richard Sullivan of the NYPD Computer Crimes Squad under the command of Lieutenant John Otero under the overall supervision of Chief George Brown of the Detective Bureau.


Assistant District Attorney Ishak Akyuz of the District Attorney's Organized Crime and Rackets Bureau is prosecuting the case under the supervision of Assistant District Attorney Gerard A. Brave, Bureau Chief, Marc P. Resnick, Deputy Chief. The civil action is being litigated by Assistant District Attorney David S. Zadnoff of the District Attorney's Special Proceedings Bureau under the supervision of Assistant District Attorneys Anthony M. Communiello, Bureau Chief, and Oscar W. Ruiz, Deputy Bureau Chief.


Both the criminal prosecution and the civil litigation are under the overall supervision of Executive Assistant District Attorney for Investigations Peter A. Crusco and Deputy Executive Assistant District Attorney for Investigations Linda M. Cantoni.


It should be noted that an indictment is merely an accusation and that defendants are presumed innocent until proven guilty.



ADDENDUM
CRIMINAL DEFENDANTS (27 individuals and 3 corporations)

Bookmaker (1)
James W. Giordano, 52, of 6501 SW 92nd Street in Pine Crest, Florida.
CONTROLLER (1)
Daniel B. Clarin, 32, of 5795 SW 114 Terrace in Miami, Florida.
FINANCIAL OFFICERS (2)
Priscilla Ann Giordano, 53, of 6501 SW 92nd Street in Pine Crest, Florida.
Melissa Clarin, 31, of 5795 SW 114th Terrace in Miami, Florida.
CLERK (1)
Robert H. McGrath, 37, of 11869 Donlin Drive in Wellington, Florida.
WEB DESIGNER (2)
Primary Development, Inc., of 6 Dubon Court in Farmingdale, Long Island.
Primary's CEO Maurice Freeman, 37, of 528A 5th Street in East Northport, Long Island.
WEB SERVER PROVIDERS (2)
Prolexic Technologies, Inc., of 1930 Harrison Street in Hollywood, Florida.
Digital Solutions, S.A., of 6045 SW 45th Street in Davie, Florida.
MONEY COLLECTORS (5)
Frank Lobascio, 47, of 1536 Jerusalem Avenue in North M errick, Long Island.
Frank LaM onica, 59, of 49 Crest Road East in North M errick, Long Island.
Ralph Piccirilli, 72, of 5 Carr Street in Pomton Lakes, New Jersey.
Monte Weiner, 56, of 300 East 40th Street in Manhattan and 2503 Turtle Head Peak D rive in Las Vegas.
Steven C. Tarantino, 33, of 150 East 57th Street in Manhattan.
DISTRIBUTORS (12)
Donald L. Clarke, 55, of 135 Baylor Avenue in Hillsdale, New Jersey.
Frank Falzarano, 52, of 3813 Voohris Lane in Seaford, Long Island.
Eric L. Weiner, 27, of 300 East 40th Street in Manhattan and 701 Brick Key Boulevard in M iami.
Stuart J. Kempner, 60, of 568 Rockaway Street in Staten Island.
Ellen S. Adeline, 65, of 1754 60th Street in Brooklyn.
Rocco J. Renelle, 51, of 667 Yetman Avenue in Staten Island.
Daniel Corrar, 38, of 9 Ainsworth Avenue in Staten Island.
Lawrence Samele, 52, of 12 Knoll Lane in Smithtown, Long Island.
Nicola Cavacini, 40, of 9470 Peace 231 Way in Las Vegas.
Guy Gemore, 44, of 151 Vreeland Road in West Milford, New Jersey.
Peter Mastrandrea, 44, of 6 South 4th Street in New Hyde Park, Lo ng Island.
Thomas Gehlhaus, 36, of 257 Newbridge Road in Levittown, Long Island.
AGENTS/RUNNERS (3)
John M. Ducato, 47, of 235 West 18th Street in Deer Park, Long Island.
Arnold Fuchs, 43 ,of 4 East 8th Street in Manhattan.
Conrad J. Panza, 28, of 196 Sedgewick Street in Huntington Station, Long Island.
FINANCIAL ADVISOR (1)
Louis Andrew Moed, 35, 19263 Skyridge Circle in Boca Raton, Florida.
CIVIL DEFENDANTS (17 individuals and 3 corporations)
Daniel and Melissa Clarin
Donald Clarke
Daniel Corrar
Digital Solutions, S.A., of Costa Rica (and its American counterpart, D.S. Networks, S.A., Inc.)
Frank Falzarano
James and Priscilla Giordano
Stuart Kempner
Frank LaMonica
Frank Lobascio
Peter Mastrandrea
Louis Andrew Moed
Ralph Piccirilli
Primary Development, Inc., and its CEO Maurice Freeman
Prolexic Technologies, Inc.
Rocco Renelle
Eric L. Weiner
Monte Weiner
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Last edited by The Judge; 11-15-2006 at 03:09 PM.
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  #2  
Old 11-15-2006, 04:34 PM
Duck Fallas
 
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My book

Guess that explains why i couldnt get on today!!

Well guess im out of business for awhile.. See ya guys later!!!
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  #3  
Old 11-15-2006, 05:08 PM
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Quote:
Originally Posted by Luckyluciano
Well guess im out of business for awhile.. See ya guys later!!!
To be honest, I was half expecting you to be on the list, Lucky.
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Old 11-15-2006, 05:29 PM
Duck Fallas
 
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Quote:
Originally Posted by The Judge
To be honest, I was half expecting you to be on the list, Lucky.
Lol... In all seriousness I have been using this book for over 6 years now. Suprisingly, but thankfully, my friend who set me up with this and was the person I met week in and week out and was in pretty deep was not listed. Should be interesting when I hear from him, what went down...
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Old 11-15-2006, 07:25 PM
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my cousin with the offshore connection (they run a very similar operation, but on a MUCH smaller scale), tells me there is ALOT more here than meets the eye. This bust was NOT just about gambling.

Ask yourself this, why is the Queens County (New York City) District Attorney's office conducting a raid (after a 2 year investigation) where the Defendants are being charged with violating a FEDERAL law, that only went into effect recently ?? Plus, if they were using runners to collect and pay off the bettors (as my on-line does) then there would not be any violation of the new Internet Gambling Bill (which prohibits use of credit cards to pay on-line sites).

I am told there are other activities that brought this about, and not just the operation of the gambling site itself.
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Old 11-15-2006, 09:16 PM
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Lucky...they coming for you
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Old 11-16-2006, 03:17 AM
Duck Fallas
 
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Quote:
Originally Posted by Big Pimpin
Lucky...they coming for you

Had a couple people call me and ask if they had our names.. As far as I know they dont, but when your using a computer who knows
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Old 11-16-2006, 07:37 AM
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Originally Posted by Luckyluciano
Had a couple people call me and ask if they had our names.. As far as I know they dont, but when your using a computer who knows
Not likely Lucky. They have your codename and password. And even if they did have your true name, it is NOT illegal for you to place a bet over the internet !!!
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Old 11-16-2006, 08:27 AM
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Quote:
Originally Posted by Keith
Ask yourself this, why is the Queens County (New York City) District Attorney's office conducting a raid (after a 2 year investigation) where the Defendants are being charged with violating a FEDERAL law, that only went into effect recently ?? Plus, if they were using runners to collect and pay off the bettors (as my on-line does) then there would not be any violation of the new Internet Gambling Bill (which prohibits use of credit cards to pay on-line sites).
The District Attorney only referenced the Unlawful Internet Gambling Enforcement Act to give the story a little more punch. The defendants were not charges under the new law, nor were the indictments filed in federal court.
Quote:
District Attorney Brown said that detectives assigned to the New York City Police Department's Organized Crime Control Bureau, as well as federal agents throughout the country arrested the defendants over the past few days on charges of Enterprise Corruption - a violation of New York State's Organized Crime Control Act - as well as Money Laundering, Promoting Gambling, Possession of Gambling Records and Conspiracy.
The news release states that NYC detectives and Queens prosecutors were assisted by federal agents but this is clearly a bust that the District Attorney is taking credit for. There may be other factors involved but this looks to me like the massive investigation clearly was centered around illegal gambling.
Quote:
Originally Posted by Keith
And even if they did have your true name, it is NOT illegal for you to place a bet over the internet !!!
I am surprised to hear you say this Keith because it is indeed illegal to place a bet over the internet but very unlikely that someone would be charged for doing so.
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Old 11-16-2006, 08:58 AM
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Keith i want you to represent these guys in court, your a lawyer right?
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Old 11-16-2006, 10:04 AM
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Authorities said the investigation of the sophisticated gaming operation began with a simple tip involving the attempted kidnapping of a gambler who owed a bookie $40,000.

Last edited by bulldog; 11-16-2006 at 10:06 AM.
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Old 11-16-2006, 11:21 AM
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Laptop was key to gambling bust
TOM HAYS
Associated Press

NEW YORK — It was the high-tech key to a massive, illegal gambling kingdom: a laptop computer that authorities say was owned by a professional poker player named James Giordano.

Giordano, who rarely let the computer out of his sight, unknowingly took a gamble earlier this year by leaving it behind while attending a wedding, police said Wednesday.

But in the three hours he and his wife were away from their Long Island hotel room, New York Police Department investigators armed with a search warrant and computer expertise sneaked in, found the laptop on a desk and made a digital copy of the hard drive before the couple returned.

The covert operation on June 15 helped unlock a sophisticated billion-dollar-a-year gambling scheme that rivalled casino sports books, authorities said at a news conference announcing charges against Giordano and 26 other defendants.

Giordano, 52, was arrested early Wednesday by FBI agents who had to scale the walls of his fortress-like compound in Pine Crest, Fla. Also arrested at his Long Island home in Seaford, N.Y., was Frank Falzarano, identified by prosecutors as a scout for the Washington Nationals.

“This is the largest illegal gambling operation we have ever encountered,” said Police Commissioner Raymond Kelly. “It rivals casinos for the amount of betting.”

Falzarano, 52, allegedly was a top earner in a network of 2,000 bookies who took more than $3.3 billion in cash wagers since 2004 from tens of thousands of customers nationwide.

Though the gambling ring relied on a Web site, it was different from the online betting operations targeted by recent federal legislation, said Deputy Inspector Brian O'Neill, who supervised the investigation.

The scheme involved placing sports bets through bookies, who would assign bettors a secret code to track their wagers and monitor point spreads and results through the restricted Web site. The bets were taken on all kinds of sports, including football, baseball, basketball, hockey, car racing and golf.

The defendants allegedly laundered and stashed away “untold millions of dollars” using shell corporations and bank accounts in Central America, the Caribbean, Switzerland, Hong Kong and elsewhere, said Queens District Attorney Richard Brown. The prosecutor called the $500 million asset forfeiture case “among the largest such cases ever filed.”

A total of 27 people in New York, New Jersey, Florida and Nevada were charged with enterprise corruption, money laundering, promoting gambling and other counts. Giordano had waived extradition in Florida and was expected to be arraigned next week; prosecutors did not have the name of his lawyer.

Falzarano, who was ordered held on $500,000 bail after pleading not guilty, “looks forward to defending himself in court,” said defense attorney Peter Tomao.

Charges also were brought against three companies that allegedly helped Giordano develop and secure the Web site: Primary Development Inc. of Farmingdale, N.Y., Prolexic Technologies Inc. of Hollywood, Fla., and Digital Networks, S.A., Inc. of Davie, Fla.

Search warrants executed in several locations resulted in the seizure of gambling records, computers and hundreds of millions of dollars in property, some of it stashed in a secret room concealed by a bookshelf in the Manhattan home of one of the suspects.

The property includes four Manhattan condominiums, millions of dollars in cash, tens of thousands of dollars worth of casino chips from the Bellagio casino in Las Vegas, jewelry, gold coins, and a football signed by the 1969 New York Jets following their Super Bowl victory. Also seized was original artwork by Peter Max and Salvador Dali.

Police launched an investigation last year after receiving a tip from a suspect in a separate organized crime probe. Over the next several months, detectives broke the code for the Web site and began electronic surveillance of the suspects.

Giordano won a Texas Hold 'em tournament at the Bellagio worth nearly $100,000 earlier this year.
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