Two Men Charged in $3M FanDuel Fraud Scheme Using Stolen Identities

UPDATE: Two men from Glastonbury, Connecticut, have been charged in a shocking scheme to defraud FanDuel and other online gambling sites out of an estimated $3 million. Authorities confirmed that Amitoj Kapoor, 29, and Siddharth Lillaney, 29, were indicted by a federal grand jury in New Haven on October 24, 2023.

The indictment includes a staggering 45 counts, ranging from wire fraud to identity theft. Both men are accused of exploiting the personal information of approximately 3,000 victims to open fraudulent gambling accounts and capitalize on promotional bonuses. They were arrested on Thursday and released on $300,000 bonds, facing potential sentences of 2 to 20 years for each count.

Investigators allege that since 2021, Kapoor and Lillaney conspired to defraud online gambling companies by using stolen identities to gain access to promotional offers. They purchased victims’ personal identifying information from the dark web and used it to manipulate verification processes on platforms like FanDuel.

According to the indictment, if they won using the promotional bets, the profits were transferred to virtual stored value cards, which they then moved to bank accounts they controlled. “Their winning streak is now over,” said U.S. Attorney David X. Sullivan. “As alleged, these two men used thousands of stolen identities to exploit new user incentives.”

The investigation was a joint effort involving the IRS Criminal Investigation Division and the Connecticut Department of Consumer Protection. Special Agent in Charge Thomas Demeo emphasized the severe impact of identity theft, stating, “Individuals who commit identity theft of this magnitude deserve to be punished to the fullest extent of the law.”

The Department of Consumer Protection Commissioner, Bryan T. Cafferelli, noted the investigation expanded beyond gaming to focus on the extensive identity fraud affecting victims nationwide. He encouraged those who suspect they may be victims of identity theft to visit IdentityTheft.Gov for assistance.

FanDuel, linked to the Mohegan Sun Casino, has reaffirmed its commitment to consumer protection and fraud prevention. Chairman James Gessner Jr. stated, “Fraud and identity theft have no place in a regulated marketplace. We commend the decisive action taken by federal and state authorities.”

This case highlights the critical need for stringent oversight in online gaming, as the investigation uncovers the extent of fraudulent activity and its repercussions for countless victims. With both men now facing serious charges, the focus will be on the legal proceedings that could redefine regulatory measures in online gambling.

Stay tuned for more updates on this developing story.