Two Connecticut residents have been indicted for allegedly using thousands of stolen identities to defraud online gambling platforms, including FanDuel, out of nearly $3 million. Amitoj Kapoor, 29, and Siddharth Lillaney, also 29, both from Glastonbury, are facing multiple charges, including wire fraud, identity theft, and money laundering, as outlined in a federal indictment returned by a grand jury in New Haven on February 6.

The scheme, which reportedly ran from April 2021 through November 2023, involved Kapoor and Lillaney exploiting online sports betting platforms by signing up for accounts using stolen personal information to access new-user bonuses. This practice, while not uncommon in the online gambling world, escalated into a massive fraud operation targeting thousands of individuals. Authorities say that the duo used dark web resources and encrypted messaging apps like Telegram to purchase the identities of victims, which were then used to open accounts on gambling sites.

Fraudulent Accounts and Illegal Gains

The criminals primarily targeted FanDuel, a major sportsbook in Connecticut, but their activities may have extended to other online operators as well. By taking advantage of initial sign-up promotions and first-bet bonuses, they were able to gamble with stolen money. When they won these bets, the proceeds were moved to virtual stored value cards provided by FanDuel, which allowed for easy withdrawals and deposits. These funds were then transferred into bank and investment accounts controlled by Kapoor and Lillaney.

Investigators from the Connecticut Department of Consumer Protection (DCP) and the IRS Criminal Investigation Division uncovered the fraud, with Kapoor and Lillaney allegedly stealing personal information from about 3,000 individuals. As a result, they reportedly generated approximately $3 million in illicit earnings. The case highlights a growing issue in the gambling industry, where identity theft has increasingly been used to exploit promotional offers.

Kapoor and Lillaney’s alleged activities have led to a host of charges. Both men are facing one count of conspiracy to commit wire fraud and identity fraud, which carries a maximum sentence of five years in prison. Additionally, the indictment includes 23 counts of wire fraud, each carrying up to 20 years in prison, and eight counts of identity fraud, which could result in up to 15 years for each count. They also face two counts of aggravated identity theft, which carry a mandatory two-year consecutive prison term, and 10 counts of money laundering, with each count carrying a maximum sentence of 20 years.

In total, if convicted on all counts, Kapoor and Lillaney could face decades in prison. The charges reflect the seriousness of the operation, which involved large-scale fraud and money laundering through the online gambling sector.

A Growing Concern in the Online Gambling World

The case underscores the increasing concerns about fraud and identity theft in the online gambling industry. As the market expands, particularly in states like Connecticut, authorities are grappling with the challenges of securing online platforms and protecting consumers from malicious actors. With many states legalizing online gambling, there is heightened scrutiny on the platforms that manage personal data and handle financial transactions.

Bryan T. Cafferelli, the Commissioner of the Connecticut Department of Consumer Protection, emphasized that consumer protection remains a priority. “Although this started as a gaming-related investigation, the scope of the alleged identity theft and fraud, with thousands of potential victims across the country, quickly became the primary focus of this investigation,” Cafferelli stated, according to CT Insider.

The indictment also serves as a reminder of the ongoing need for robust anti-fraud measures in the gambling industry. The case has raised questions about how online sportsbooks handle identity verification and whether more stringent controls are necessary to protect consumers from fraud. In Connecticut, where online gambling has grown significantly since its legalization, the investigation brings attention to the potential vulnerabilities in the system, especially as new operators continue to enter the market.