The sports-betting affiliate of Cantor Fitzgerald is under investigation for money laundering, sources tell the Wall Street Journal’s Alexandra Berzon and Michael Rothfeld.
While Michael Colbert, the former chief bookmaker of Cantor Gaming, pleaded guilty in August to fraud conspiracy, the Journal reports that a federal investigation is looking further up the chain at whether Colbert’s boss had a role in accepting illegal sports bets. From the report:
Investigators at multiple government agencies are also examining whether Cantor Gaming personnel allowed the laundering of millions of dollars of illegal gambling money flowing through its accounts, people familiar with the probes said. They described investigators as focused in part on whether Cantor accepted deposits it shouldn’t have and failed to report suspicious transactions to the government.
A spokesman for parent Cantor Fitzgerald said that “the company knows of no wrongdoing other than by Mr. Colbert.”
Nevertheless, about a half dozen agencies — like the Treasury Departments Financial Crimes Enforcement Network and the IRS — are reportedly probing the company, the Journal reports.