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IDG News Service

Internet currency firm pleads guilty to money laundering

Grant Gross, The Industry Standard07.22.2008
Comments 21
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E-Gold, an Internet-based payment service, and three owners have pleaded guilty to criminal charges related to money laundering, the U.S. Department of Justice said Monday.

E-Gold, based in Nevis, West Indies, and corporate affiliate Gold & Silver Reserve each pleaded guilty in U.S. District Court for the District of Columbia to conspiracy to engage in money laundering and conspiracy to operate an unlicensed money-transmitting business.

Douglas Jackson, 51, of Melbourne, Florida, the principal director of E-Gold and CEO of Gold & Silver Reserve, pleaded guilty to the charges, the DOJ said in a statement.

E-Gold's other two senior directors, Barry Downey, 48, of Baltimore, and Reid Jackson, 45, of Melbourne, each pleaded guilty to felony violations of District of Columbia law relating to operating a money transmitting business without a license. E-Gold, Gold & Silver Reserve and the three company directors were charged in an indictment returned by a federal grand jury in April 2007.

Douglas Jackson, in a blog post Monday, announced changes to the E-Gold user agreement, including a temporary suspension of new accounts there. The company will also require users to have only one account, he wrote. A design flaw in the service "made it vexingly difficult for e-gold to expel a user, in a truly effective way, for criminal abuse of the system," he added.

Jackson called E-Gold more successful than most competitors, but also acknowledged problems with the service. One problem is E-Gold's "failure to transition from a marginal player for early adopters to a respected institution integrated into the global financial mainstream," he wrote. "E-gold's failure to emerge so far is a result of many factors but the root causes were design flaws in the account creation and provisioning logic that led to the unfortunate consequence of vulnerability to criminal abuse. Criminal abuse of the e-gold system, in turn, led to a self-reinforcing negative reputation."

E-Gold and Gold & Silver Reserve could face a fine of US$3.7 million at sentencing. Douglas Jackson faces a maximum prison sentence of 20 years and a fine of $500,000 on the conspiracy-to-engage-in-money-laundering charge, and a sentence of five years and a fine of $250,000 on the operation of an unlicensed-money-transmitting-business charge.

Downey and Reid Jackson each face a maximum of five years in prison and a fine of $25,000.

E-Gold and Gold & Silver Reserve have also agreed to the forfeiture of $1.75 million. Sentencing for all defendants has been scheduled for Nov. 20.

As part of the plea agreement, the businesses will create a comprehensive money-laundering-detection program that will require verified customer identification and reporting of suspicious activity, the DOJ said.

Under U.S. and District of Columbia law, the E-Gold operation was required to be licensed and registered as a money transmitting business. However, according to information in plea materials, it had not registered with the federal government or obtained a license in the District of Columbia.

The resulting lack of oversight and required procedures created an atmosphere where criminals could use "e-gold," or digital currency, essentially anonymously to further their illegal activities, the DOJ said.

E-Gold provided digital currency services at E-gold.com and Omnipay.com. Users did not have to provide their identities, and E-Gold continued to allow accounts to be opened without verification of user identity, despite knowing that "e-gold" was being used for criminal activity, including child exploitation, investment scams, credit card fraud and identity theft, the DOJ said. E-Gold assigned employees with no prior experience to monitor hundreds of thousands of accounts for criminal activity, the agency said.


The mob doesn't like competition. It's THEIR phoney-money scheme, not yours!

Yeah, the government... er.... mob likes to control all the ways people can be financially raped for their sole benefit. It's not like people's rights are important, and they are insignificant, so why not?

Hm, let's see. There's money going back and forth and we MUST know what that money is. Not knowing where the money comes from and goes to puts this country in grave danger of terrorists, drug traffickers, criminals, WMD proliferators, child molesters, uuhh, I mean "exploiters", investment scams, identity theft, credit card fraud, etc. We MUST control your every move or else ...
In other news SEC is protecting your investments while your dollar just devaluated 20% on upcoming banking bailouts, carbon tax to save the world is absolutely necessary, said Al Gore.

Congratulations USA Goverment you just made your currency the USD (aka United States Dollar)
worth NOTHING!!!

I will not accept USD as payment for anything as I will deem any and all USD Bank Notes as forged ones.
Nor will I accept credit cards.

And be carefull USA because your goverment is out to smother you in beurocracy.


I guess they weren't friends with the right people, so they got prosecuted instead of a wink, a nod, and a big government bailout.

Let's look at the scoreboard:
- Individual rights and freedoms : Zero - 1984-Style Government - 1

what has the district of columbia got to do with this?

I set up an account with e-gold and networked the use of e-gold for transfering monitary precious metal for payments. I never recieve on gram of precious metals. I have no idea if any monies were transfer into my account. If there was a transfer, I had no control over the transaction. I thought it "e-gold" would work on and international scale. It did not pay off. As far as the criminal minded SEC, I would have to say that the CID and the SEC have had me investigated and have entered my apartment for about three or four years. How do you get the organization of e-gold to become accountable for there crime?

Marc Manspeaker
Glendale, Arizona USA

P.S.: With all the internet HACKERS involved what in the world do you do to protect your self and your assets.

The next comment I would like to make is the use of C-A-B ing owned by the Government of the United States of America. They seem to be an international organization of murderous criminal minded men and women who steal and confiscate properties from individual people. If you do your research on the subject of CAB and google it, you will come in contact with a totalitarian tyrant. These CAB ers are all over the world and probably CID.


The next question I have is: How do I get my money back from the CID,SEC, or the Secret Service? If e-gold does not, according to there agreement, you are responsible for your assets not them. Now if I am investigated by the Government, and they take everything, what in the hick do I do?

I think that is a humorour commet, but, if we can't control our own asset on our own "individual liberty", we need a form of government that will pay use back if taken advantage of. I am not sure if Mark Hamelton was elected as a non-political President, that he would be able to solve this problem. The fact that Dr. Frank R. Wallace was, in my opinion, Assacinated by a Nurse, who happens to be my bitter Ex-Wife, is it viable for the World of Independent Liberty to have our individual freedom. I know it is beyond the thoughts of a Mass Murderous Society of Criminal Minded Master Neo-Cheaters. I must warn everyone, that there will be dangerous times and lives will be lost. It troubles me and we must take major advantage of people like Debra Denise Rizo. Formally Debra Denise Desch. I was married to this mass murder.

Marc Manspeaker

P.S.: I think her brother Mike Desch is responsible for the thirty years of mass murder and terriorism of the Middle East. He was a Marine and was stationed in the Middle East thirty years ago.

I would have to say that e-gold's agreement that I checked in order to obtain the ability to transfer prescious metals on an internation basis, was an agreement that I did not want to agree with. I wonder if the owners of e-gold could, themselves make it up to their customers in order to survive this Court Battle. The use of e-gold was at first a valuable enterprise, but, I never recieved or even understood the transfer of large amounts of prescious metals. I would like to know and obtain ALL of my assets that where sent to me. We need to obtain all of our gold, silver, platium, and palodium from whoever stold our monies. I was investigated and talked about this e-gold at the bar seen. These investigators are using all forms of master neo-cheating and are internation. I do not known if they are the CID, the SEC, or an investigation from the News Media. Possibly the CIA. When I set up this e-gold account, I was in the middle of forming and propaging my thoughts and influence on many subjects. I founded The Religion of Totalbodytransplant. I read many books written by Neo-Tech Publishing Company. After my research and study I came up with the most advanced forms of thought. I would have to say this opening of the consciousness helped me create some of the most valuable writtings that I have ever written. We must remember the extreme danger of the Crimial Minded Master Neo-Cheaters. They use Pain Amplification and extreme malice. They may be at times laughable, but, you must know they are mass murders and consider me and us the enemy.

Marc Manspeaker


Please Publish for the safety of all Neo-Tech People!

I would recommend that e-gold recieves no Jail time in order for their administation to get the prescious metals into the hands and accounts of the customers and correct their agreement form.
A sentence of twenty year would not solve the problem. I don't have, at this time, any conflict with a financial payment of 500,000 to 250,00 american dollars from there organization to cover the problem that exist within there agreement. The question is where is the gold, silver, platium, and polodium. Is there really any prescious metals or not? Did they intent to deliver to my front door a statement of ownership for me?

Marc Manspeaker
Glendale, Arizona USA

If this e-gold service could be factual, I think it would be great to do international busines with a money form backed by prescious metals.

Protect yourself. A small private group of individuals appears to in control many governments through the power to create money that is no longer backed by assets such as gold or other precious commodities. Their power appears to be growing. Arm yourself with knowledge. Be aware!

Can we trust those with power to look after our best interests? Perhaps, we should maintain vigilance, or risk losing not only prosperity, but freedom as well. We should not fall victim to the golden rule: He who has the gold rules!

FYI, I have a blog post that contains three, must-see, videos concerning government and bank encroachment on individual privacy and freedom at http://blog.bistar.com/?page_id=11

We are systematically being stripped of our rights 'for our own good', so that a selected few may gain power and control over our financial affairs.

As far as the numbers of 666,000 + dollars for scientist, I would have to say I don't like the number at all. I would not like a barcode or a number of 666 on my account. I have no intention of saying a little prayer with Jan and Paul Crouch in order to gain my freedom from a anti-god extabishment like the extablished order. I love my life and I value my own integrity. As far a money, I love the dollar. The number 10 makes sense to me and always has. I don't base my life on the Holy Bible, but, I think the scientific community of the USA thinks that I am the anti-christ. Is NASA technology involved? Of course they are.


I would like to present for review and consideration the following document:

I would like total ownership of this document and will need to take it up with the United Nations.

I would have to say that the IRS possibly controled by John P. Desch and using me as a pawn is responsible for the payments to the CID, SEC, and the CAB ing operation that is in use today. This is a crime against humanity. They are using the most advanced master neo cheating techniques I have ever encountered. They make people who are trying to create something of value look as if they are the criminals. The news media and the artificial inteligence is involved. The entire System has been created by the most intigrated master criminals on the planet. They will commit mass murder, imprisonment and torture in order to obtain there way in life. Infiltrating into the system my help. Disassociating from them and obtaining your freedom from them would help. We have to work within the system, but, recognizing that the system is founded on a non-sequir is something that needs to be know, The system works so they do not see any other way to make a profit.

I have submitted information on my own behalf and the behalf of e-gold. Please read and let's get the owners of e-gold and myself their freedom to use a ethical minded and safe way to transfer monies on and international basis. The CIA and the FBI are to blame. Blame is not going to solve this intigrated master neo-cheating problem. Hard effort on an international basis and defectors will be able to help. If you can travel on your own means and do your own investigation of this international crisis, you will be able to help yourself and many other people who may be on your side. Separate and do your research and know your suroundings. Spys are all over.

Marc Manspeaker
Glendale, Arizona USA

I would like your people to read my blog Titled "Systematic Monetary Ostracism" It is located on blogger.com/ under my name: marc manspeaker. By the way, the Actor Portaing me is a master-neo-cheater. Most people in Screen Actors Guild are master-neo-cheater.

Your Friend

Marc Manspeaker


They are using ground, satilite, NFL, NASA, and Pentagon technology in order to penitrate my brain. At this point in time, when I am in my apartment, they follow me and use pentagon technology in order to find out what is within my mind. The investigation is lead by perverted and murderous men. They use mind control and pain-amplification in order to punish me. They have Nililistic savante geniuses with virus technolgy to corrupt my home computer. I think their is a nililist within me who is a sadistic maslovian or socorovian.. They are estremist and highly advanced neo-cheaters using all forms of technology.

That is my report.

Marc Manspeaker


I cannot understand. E-gold is like a nevis corporation. Why does it have to obey American laws?

I mean if I own microsoft stocks and microsoft sell porn, which is illegal in my country, will I get indicted?

Governments just want to enslave all of us. E-gold share info to law enforcement. E-gold mark those accounts as ponzy, etc. to help law enforcement. They did what's reasonable already.

Also e-gold is not money. Anyone using e-gold knows what they're getting. If they dont like then just don't buy.

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