Two Indian American residents of Glastonbury, Amitoj Kapoor and Siddharth Lillaney, have been indicted in federal court for allegedly using the identities of approximately 3,000 individuals to commit fraud against various online gambling platforms, primarily FanDuel. The federal grand jury in New Haven returned a comprehensive 45-count indictment on February 3. The charges encompass fraud, identity theft, and money laundering offenses, as announced by the US Attorney’s Office for the District of Connecticut.

Arrests and Bail

Kapoor and Lillaney were taken into custody on February 5 and subsequently appeared before US Magistrate Judge Maria E. Garcia. Following their arraignment, both defendants were released on bonds set at $300,000 each.

Method of Operation

Court documents indicate that the accused conspired to deceive online gambling companies by creating accounts using the stolen personal information of identity theft victims. These victims were located in Connecticut and beyond. Prosecutors allege that Kapoor and Lillaney exploited promotional offers aimed at new users, including bonuses and credits, to facilitate their gambling activities.

The defendants reportedly sourced this stolen personal data through darknet marketplaces and the encrypted messaging platform, Telegram. To further their scheme, they maintained accounts on background-check websites, enabling them to acquire additional victim information, which was used to answer identity-verification queries during account registration.

Financial Transactions and Allegations

Authorities assert that winnings obtained from wagers made with bonus bets were converted into virtual stored-value cards linked to the gambling platforms. These funds were then allegedly funneled into bank accounts and investment accounts controlled by the defendants. Since 2021, it is claimed that Kapoor and Lillaney generated around $3 million in profits through this fraudulent operation.

US Attorney David X. Sullivan emphasized the grave nature of the alleged crimes, underscoring that Kapoor and Lillaney exploited thousands of stolen identities to engage in gambling activities with illicitly obtained funds. Sullivan stated that their actions have now led to legal consequences.

Scope of the Investigation

Thomas Demeo, the special agent in charge of the Internal Revenue Service Criminal Investigation in New England, remarked on the significant scale of the identity theft and fraud involved. The investigation initially began as a gaming-related inquiry but rapidly expanded due to its complexity and the potential number of victims affected nationwide. He urged individuals who suspect they may be victims of identity theft to take action and report their concerns through appropriate channels.

Indictment Charges Specifics

The indictment encompasses a range of charges against Kapoor and Lillaney, including one count of conspiracy to commit wire fraud and identity fraud, 23 counts of wire fraud, eight counts of identity fraud, two counts of aggravated identity theft, one count of conspiracy to commit money laundering, and 10 counts of money laundering. Some of these charges carry maximum prison sentences of up to 20 years, while the aggravated identity theft charges could result in mandatory consecutive sentences of two years.

Federal prosecutors made it clear that an indictment does not imply guilt, with both defendants presumed innocent until proven otherwise in a court of law.