Accused Money-Launderer's Lawyer Says His Client No Longer Owns Payment-Processor Electracash
By Van Smith
Jun 04, 2014 | 11:14 PM
As federal authorities continue their Maryland-based investigation into online gambling, the lawyer for one of the two people charged in the probe—Edward Courdy, accused last year of laundering illegal gambling proceeds—tells City Paper that a piece of the government's information is wrong. Courdy, Stanley Greenberg writes in an Oct. 21 letter, is no longer an owner of Electracash, despite an investigator's affidavit that says he is.
Electracash, as City Paper has reported here, here, and here, has recently been targeted by warrants seizing bank accounts and e-mails.
"Mr. Courdy left the regular business activities of Electracash in approximately 2001," Greenberg's letter states, "and has been divested of any ownership interest in that entity since approximately 2003."
A 2008 affidavit written by Internal Revenue Service criminal investigator Randall Carrow tied Electracash to Courdy. The affidavit supported the seizure of eight Nevada State Bank accounts associated with a Courdy company called ZipPayments. Of one of the seized accounts, the affidavit stated: "From this account there were wire transfers out to American Express, Western States Management Advisors and Electracash, Inc., which I know from other bank records is another Courdy business."
The transactions that Carrow described occurred between January and May 2008.
Greenberg's letter acknowledges that City Paper relied on court records for its reporting on Courdy's ties to Electracash. "However," he writes, "that fact is erroneous, and that error has caused [Courdy] considerable dismay and harm." It goes on to ask City Paper to "publish a correction to make it clear that Mr. Courdy is not an owner of Electracash, Inc., nor has he been for approximately 6 years."
City Paper's attempts to corroborate Carrow's assertion of Courdy's ownership of Electracash have included calls to Greenberg and to two Electracash officers: CEO D. Lee Falls and marketing director Richard Cornejo. Until his letter, Greenberg has declined to divulge anything related to the case against his client, which was filed in July 2008.
Falls and Cornejo have not returned repeated phone messages left since August.