Home > News > Federal Grand Jury Indicts Former CEO of Adult Processor • Bookmark   • Newsletters   • Register Search Options


Federal Grand Jury Indicts Former CEO of Adult Processor

Federal Grand Jury Indicts Former CEO of Adult Processor
Get XBIZ News
Apr 28, 2010 11:15 AM PDT    Text size: 
LAS VEGAS — Daniel Tzvetkoff, the former CEO of online adult processor Merchant Solutions who later founded gambling processor Intabill Inc., faces up to 75 years in prison and at least $543 million in fines after a federal grand jury indicted him.

Tzvetkoff faces charges of illegal gambling, bank fraud and money laundering in connection with Intabill's elaborate processing operation, where dozens of phony offshore shell companies with names unrelated to gambling were allegedly used to facilitate transactions.

Federal prosecutors said that Intabill utilized the automated clearinghouse system to transfer funds between U.S. checking accounts and various Internet gambling businesses. They charge that Tzvetkoff and others disguised those gambling transactions as repayment of payday loans that consumers had taken out online, as well as transferred funds applied to pre-paid debit cards.

"Tzvetkoff and his co-conspirators obtained unique websites and toll-free numbers for these shell companies and developed phony websites to make the companies appear to have a valid, non-gambling purpose," the indictment said.

Tzvetkoff, an Australian citizen, was arrested earlier this month in Las Vegas while attending a trade show. Federal prosecutors were tipped off over the Tzvetkoff's alleged activities after several online casino companies alleged that he stole $100 million of U.S. player deposits.

Federal prosecutors said that Tzvetkoff's operations lasted a little more than a year, from February 2008 until March 2009. Several months after Intabill wound down, the corporate parent filed for bankruptcy in May 2009, with Tzvetkoff later filing personal bankruptcy in February.

Tzvetkoff moved over to online gambling processing after spending several years helming Merchant Solutions, an online adult payment company headquartered in Brisbane, Australia, with another office in Los Angeles.

According to Bluff Magazine, Tzvetkoff has gained notoriety in Australia for his lavish lifestyle and vast wealth. He is estimated to be worth $1 billion, but has seen some difficult financial times as of late. His $28 million mansion on Australia’s Gold Coast, $27 million luxury yacht, and fleet of high-end vehicles all have been either sold or put up for sale.

Tzvetkoff, who has been in custody for several weeks, had a court hearing today at U.S. District Court in Las Vegas to determine whether he will be able to be released under monitored home detention.

U.S. District Judge Lewis A. Kaplan sided with prosecutors declaring Tzvetkoff "a serious risk" of fleeing if granted bail.

"No condition or combination of conditions will reasonably assure the presence of the defendant as required," Kaplan said.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Camming Issue: Models vs. Affiliates

One of the most contentious conversations among cam models today involves affiliate promotions that include unauthorized photos or videos of the models. This isn’t a matter of a model’s, network’s,... More »

Camming Issue: Profits on Rise for Performers

It’s been 20 years since JenniCam rocked the infant internet with the first adult-oriented live cam shows, revealing the intimate details of this groundbreaking cam performer’s daily life —... More »

Caring About Camming: Academia Takes a Closer Look

Editor’s Note: Rachel Stuart is a PhD Researcher at the University of Kent’s School of Sociology, Social Policy and Research, undertaking an investigation of some of camming’s nuances,... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.


XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA

ANME Founders Show

Jan 14 - Jan 15
Los Angeles Marriott Burbank Airport

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!