Website design By BotEap.comDoug Jackson, Reid A. Jackson and Barry K. Downey have been indicted by the US government for illegally operating e-gold, private digital gold currency. They operated out of Melbourne after being indicted by a federal grand jury in Washington, DC They are accused of running an unregulated financial network that catered to criminals who laundered illegal money.

Website design By BotEap.comJeffrey Taylor, the United States Attorney for the District of Columbia and other Departments of Justice. Authorities said they expect all three to surrender in Washington DC at a later date.

Website design By BotEap.comA four-count indictment was filed against E-Gold Ltd., Gold & Silver Reserve Inc. and the owners, Dr. Douglas L. Jackson, of Satellite Beach; Reid A. Jackson of Melbourne; and Barry K. Downey of Woodbine, Maryland. Each was charged with conspiring to launder monetary instruments; conspiracy to operate an unauthorized money transfer business; operate an unauthorized money transfer business; and unlicensed money transmission in Washington, DC

Website design By BotEap.comThe federal, state and local task force operated for two and a half years spearheaded by the US Secret Service in Orlando, along with the IRS, FBI and other state and local law enforcement agencies. Federal prosecutors obtained a court-ordered search warrant and allegedly seized millions of dollars. That resulted in at least 58 account holders being exposed and thought by many to be criminals laundering illegal money through E-Gold trades and transactions.

Website design By“Douglas Jackson and his associates operated a sophisticated and pervasive international money remittance business, unsupervised or regulated by any entity in the world, allowing for anonymous transfers of value at the click of a mouse,” Taylor said. “It is not surprising that criminals of all stripes were drawn to E-Gold as a place to move their money with impunity. As the indictment alleges, the defendants in this case knowingly allowed them to do so and benefited from their crimes.”

Website design By BotEap.comThe indictment accused the digital currency “EGold” of operating as an alternative payment system and was allegedly backed by stored physical gold. It stated that customers only needed to provide an email address to open an account and no other customer information was verified. The indictment accused some customers of using fictitious names such as “Mickey Mouse,” “Donald Duck” and “No Name” and being able to conduct international transactions without any government regulation.

Website design By BotEap.comBecause of that, it has become a “highly favored payment method” for investment fraudsters, credit card and identity thieves, and Internet sellers of child pornography, authorities said.

Website design By BotEap.comA call to the offices of E-Gold and Gold & Silver Reserve, the founder denies the charges. Dr. Douglas Jackson, Chairman and Founder of E-Gold, speaking on behalf of his fellow directors and of both companies, strongly denies the charges, taking particular issue with allegations that either company turned a blind eye to payments for child pornography or for the sale of stolen identity and credit card information.

Website design By BotEap.comDr. Jackson stated: “With regard to child pornography, the government knows very well that their accusations are false, but they highlight these irresponsible and deliberately damaging statements to demonize E-Gold in the public eye. During the Inquisition, Las accusations of witchcraft and heresy were used to sanctify torture and the seizure of assets In the post-9/11 United States, child pornography and terrorism serve as preferred denunciations E-Gold, however, as a matter of incontrovertible fact , is the most effective of all online payment systems in detecting and intercepting abuse of its system for payments related to child pornography E-Gold Ltd. is a founding member of the Financial Coalition to Eliminate Child Pornography Center National for Missing & Exploited Children (NCMEC).

Website design By BotEap.comE-Gold is the only member institution that demonstrates with hard and auditable data a drastic reduction of such payments to practically zero, while billions of dollars of child pornography continue to flow through other (highly regulated) payment systems. [Most members, that is, all the banks and credit card associations are utterly unable to even provide an estimate of the volume of such payments processed by their systems. eBay’s PayPal subsidiary, who may have the ability to make such a determination, has refused to do so and has indicated they destroy payment records after two years.] What’s worse, until August 2005, when NCMEC bravely broke ranks with US law enforcement agencies and began notifying E-Gold directly of criminal sites via CyberTipline, the component agencies of the The U.S. Department of Justice deliberately hid their knowledge of E-Gold’s child pornography abuses from investigators, subordinating actual crime fighting to a political agenda designed to smear E-Gold.”

Website design By BotEap.comClick HERE to read Dr. Jackson’s full denial statement.

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