Federal Grand Jury Indicts Former CEO of Adult Processor

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.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Roxie Rae Relaunches Site Through XSiteAbility

Roxie Rae has relaunched her site through XSiteAbility.

Federal Appeals Court Vacates FTC 'Click to Cancel' Rule Pending Review

The U.S. Court of Appeals for the 8th Circuit on Tuesday vacated the Federal Trade Commission’s “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions, pending further review.

NYC Adult Stores Lose Challenge to Zoning Law, May Face Relocation

The U.S. Court of Appeals for the 2nd Circuit on Tuesday upheld a lower court’s decision to allow enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

FSC Drops Florida AV Lawsuit in Wake of SCOTUS Decision

A U.S. district court judge granted on Tuesday a motion by Free Speech Coalition to dismiss the trade association’s lawsuit over Florida’s age verification law, a case that had been on hold pending the Supreme Court’s recent ruling on the constitutionality of state AV laws.

Ukrainian President Responds to Porn Legalization Petition

President Volodymyr Zelensky responded Tuesday to an OnlyFans model’s petition to decriminalize pornography in Ukraine, stating that he would wait for the legislative process to play out “in accordance with established procedure.”

Only Tax Deductions Joins Pineapple Support as Sponsor

Adult industry accounting firm Only Tax Deductions has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Adult Empire Launches 'Conversations' Podcast Series

Adult Empire has launched a new official podcast series hosted by Nicole Chappelle and Charlie.

Sex Work CEO Launches 'Teams Plan' for AI Assistant

Sex Work CEO has introduced the new Teams Plan for its AI-powered, NSFW text generator, GPTease.

2025 XBIZ Amsterdam Website Launches With Call for Speakers

XBIZ is pleased to announce that the website for its annual European conference, XBIZ Amsterdam, is now live.

NC Governor Vetoes Bill Targeting Adult Industry, Override Possible

North Carolina Governor Josh Stein today vetoed a bill imposing new regulations that adult industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Show More