Two More Defendants Pled Guilty In Manhatten Federal Court In Connection With Russian-American Organized Crime Gambling Enterprise

The U.S. Justice Department released the below information today:

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Anatoly Golubchik pled guilty today in Manhattan federal court to participating in a racketeering conspiracy in connection with his role as a member of a Russian-American organized crime enterprise.

Illya Trincher also pled guilty today in Manhattan federal court in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. Golubchik and Trincher were charged in April 2013 along with 32 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included racketeering, money laundering, extortion, and various gambling offenses. They pled guilty before U.S. District Judge Jesse M. Furman.

Manhattan U.S. Attorney Preet Bharara said, “With Anatoly Golubchik and Illya Trincher’s guilty pleas today, 18 of the 34 defendants charged in this case now stand convicted. We remain committed to making sure that everyone charged in connection with this alleged Russian-American organized crime ring is held to account for their crimes.”

According to the indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s guilty plea:

The Taiwanchik-Trincher Organization is a nationwide criminal enterprise with strong ties to Russia and Ukraine. The leadership of the organization ran an international sportsbook that catered primarily to Russian oligarchs living in Russia and Ukraine and throughout the world.

The Taiwanchik-Trincher Organization laundered tens of millions of dollars in proceeds from the gambling operation from Russia and the Ukraine through shell companies and bank accounts in Cyprus and from Cyprus into the United States. Once the money arrived in the United States, it was either laundered through additional shell companies or invested in seemingly legitimate investments, such as hedge funds or real estate. Golubchik was a U.S.-based participant in the enterprise.

As part of his plea, Golubchik acknowledged that in furtherance of the Taiwanchik-Trincher Organization, Golubchik laundered the proceeds of their international sportsbook and assisted in the operation of the illegal gambling business.

Trincher and co-defendant Hillel Nahmad ran a high-stakes illegal gambling business that catered primarily to millionaire and billionaire clients. Their business utilized several online gambling websites that operated illegally in the United States to generate tens of millions of dollars of sports bets each year.

The gambling operation was financed through a host of American and international bank accounts, including accounts associated with Nahmad, defendants John Hanson and Noah Siegel, a/k/a “The Oracle,” and a plumbing company in the Bronx that was acquired in repayment of a $2 million gambling debt. As part of his guilty plea, Trincher acknowledged that he was a leader and organizer of the illegal sports gambling business, he supervised the illegal gambling business, and he conducted numerous financial transactions on behalf of the illegal gambling business.

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Golubchik, 57, of Fort Lee, New Jersey, faces a maximum of 20 years in prison and three years of supervised release. As part of his plea agreement, Golubchik agreed to forfeit cash and property worth over $20,000,000.00. He is scheduled to be sentenced by Judge Furman on March 25, 2014, at 3:00 p.m.

Trincher, 28, of Los Angeles, California, faces a maximum of five years in prison and three years of supervised release. As part of his plea agreement, Trincher agreed to forfeit cash and property worth over $6,000,000 and a black 2012 Porsche Cayenne. He is scheduled to be sentenced by Judge Furman on March 25, 2014, at 3:45 p.m.

Golubchik is the 17th defendant in this case to plead guilty. Trincher is the 18th defendant in this case to plead guilty. The defendants who have pled to date have agreed to forfeit, in total, more than $66,000,000. The following defendants previously pled guilty and await sentencing:

• Bryan Zuriff pled guilty to gambling charges on July 26, 2013
• William Barbalat pled guilty to gambling charges on August 14, 2013
• Kirill Rapoport pled guilty to gambling charges on August 16, 2013
• Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013
• Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013
• Alexander Zaverukha pled guilty to gambling charges on October 10, 2013
• Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013
• Anatoly Shteyngrab pled guilty to conspiring to commit money laundering on October 17, 2013
• Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013
• Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013
• Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013
• Hillel Nahmad pled guilty to gambling charges on November 12, 2013
• Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013
• Eugene Trincher pled guilty to gambling charges on November 14, 2013.

Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.

The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.