United States of America v. Jonathan Arvay

Denver, Colorado criminal defense lawyer represented the Defendant charged with Operating Illegal Gambling Parlor

Denver Man Sentenced For Operating Illegal Gambling Parlor

Jonathan Arvay, age 38, of Denver, operated Player One Arcade in Denver, part of a network of gambling parlors extending from Greeley to Pueblo. These parlors offered several electronic forms of gambling through games made to resemble arcade games, as well as virtual slot machines in which customers attempted to earn credits. Upon completing their game of choice, customers would exchange any credits won for a purported cryptocurrency, Obsidian Digital Asset Coin (ODAC), whose only function was to be exchanged for cash at an ATM-like "cryptocurrency teller machine” next door to or within the gambling parlor. Customers were required to pay a transaction fee to exchange the ODAC for U.S. currency.



"This was a modern version of old-fashioned illegal gambling,” said Acting United States Attorney Matt Kirsch. "I am grateful for our local and federal partners who helped put this criminal in prison.”



"This sentence reflects an appropriate resolution to a complicated case: When you launder money and commit fraud against the government, the FBI and our partners will track you down across jurisdictions,” said FBI Denver Special Agent in Charge Mark Michalek.



"IRS-CI remains on the cutting edge of cybercrime investigations as financial crimes continue to become more sophisticated,” said Tom Demeo Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. "We are committed to staying one step ahead of criminals and leveraging our partnerships with federal and local law enforcement agencies to protect the U.S. tax system.”



United States District Judge Gordon P. Gallagher presided over the trial. The FBI Denver Field Division, the IRS Criminal Investigation Denver Field Office, and the Pueblo Police Department conducted the investigation. Assistant United States Attorneys Cyrus Y. Chung, Alison Connaughty, and Jena Neuscheler handled the prosecution.