LOS ANGELES, CA, (NAMC) - MICHAEL ROSSI: As gold has been in focus as of late, criminals have found a new vehicle to clean their ill gotten gains as the gold craze is just ramping up. A Federal Grand Jury in Washington D.C. has indicted the owners of the online digital currency website e-Gold, accussing them of operating an unregulated network that focused on criminals shifting their funds around.

e-Gold was founded in the 1990's and actually makes it simple for criminals to move money around via the Internet just by transferring the ownership of gold bars from one party to another. This is done in small amounts so falls under the radar but when it grew in popularity it also drew the attention of authorities.

Now according to the U.S. Department of Justice e-Gold turned a blind eye as funds were transferred from parties that derived their money from  illegal activity such as credit card and investment fraud and child exploitation. Now if that wasn't bad enough they also added the e-Gold was operating without a license, and their not registering with the U.S. federal government just added the violation of money transmitting laws, have they ever heard of The Patriot Act?

So if things couldn't get worse for the commission based e-Gold, the owners are being investigated by the U.S. Secret Service, with the help from the Internal Revenue Service and FBI. So the alledged cybercrooks, Reid A. Jackson and Barry K. Downey, can actually face up to 20 years in prison if found guilty.

According to reports all accounts connected with the alleged illegal activity have been frozen as part of the investigation of the federal government

There was no mention of drug money being launder via e-Gold but that would not be a big shock.

Michael Rossi
Business News Correspondent
NAMC Newswire
www.namcnewswire.com

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