Denver Man Found Guilty of Operating Illegal Gambling Parlor

Denver Man Found Guilty of Operating Illegal Gambling Parlor

Press Release Denver Man Found Guilty of Operating Illegal Gambling Parlor DENVER – The United States Attorney’s Office for the District of Colorado announces that Jonathan Arvay, 38, of Denver, was found guilty by a federal jury on one count of conducting an illegal gambling business, and one count of conspiracy to conduct an illegal gambling business. According to the facts established at trial, Arvay operated Player One Arcade in Denver, part of a network of gambling parlors extending from Greeley to Pueblo. These parlors offered several electronic forms of gambling through games made to resemble arcade games, as well as virtual slot machines in which customers attempted to earn credits.

Upon completing their game of choice, customers would exchange any credits won for a purported cryptocurrency, Obsidian Digital Asset Coin (ODAC), whose only function was to be exchanged for cash at an ATM-like “cryptocurrency teller machine” next door to or within the gambling parlor. Customers were required to pay a transaction fee to exchange the ODAC for U.S. currency. “These gambling dens masqueraded as arcades with a veneer of legitimacy,” said Acting United States Attorney for the District of Colorado Matt Kirsch.

“I am grateful to law enforcement for digging beneath the veneer and finding that these establishments were causing real harm in our communities.” “These defendants created a large, complex illegal gambling operation, both online and in person in Pueblo, Colorado Springs, Lakewood, Denver, Aurora, and Greeley. Their illicit proceeds led to crimes involving money laundering and fraud against the U.S. government, among other violations,” said FBI Denver Special Agent in Charge Mark Michalek.

“Our strong partnerships with Internal Revenue Service - Criminal Investigation, as well as numerous state and local agencies, allowed us to successfully dismantle the gambling dens that were negatively impacting surrounding communities.” “I applaud the efforts of our special agents and law enforcement partners for their diligent work in unraveling this complex financial scheme,” said Tom Demeo, Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “As fraudsters devise new ways to evade their tax liability and defraud the government, our special agents continue to develop new investigative methods to track the illicit funds and hold these criminals accountable.”

United States District Judge Gordon P. Gallagher presided over the trial. The FBI Denver Field Division, the IRS Criminal Investigation Denver Field Office, and the Pueblo Police Department conducted the investigation. Assistant United States Attorneys Cyrus Y. Chung, Alison Connaughty, and Jena Neuscheler handled the prosecution.

Sentencing will be held on December 12, 2024. Case Number: 23-cr-00222-GPG Contact USACO.PublicAffairs@usdoj.gov Updated September 17, 2024