A multi-million-dollar fraud scheme targeting FanDuel and other online sportsbooks has resulted in the federal indictment of two individuals in Connecticut.
Authorities last week arrested Amitoj Kapoor and Siddharth Lillaney, charging them with defrauding FanDuel and additional sportsbook operators of more than $3 million through the use of stolen identities. A 45-count indictment accuses the pair of fraud, identity theft, and money laundering offenses.
According to prosecutors, Kapoor and Lillaney acquired approximately 3,000 stolen identities using the dark web and the messaging platform Telegram. The stolen information was allegedly used to open online gambling accounts and exploit promotional bonuses, primarily offered to new users by FanDuel.
Court documents state the defendants also maintained accounts with background-check services such as BeenVerified.com and TruthFinder.com. Investigators allege they used these services to obtain additional personal details about victims, allowing them to successfully answer identity verification questions during the account registration process.
When bets placed with promotional bonuses resulted in winnings, prosecutors say the funds were transferred to virtual stored-value cards permitted by FanDuel. The money was then moved into bank and investment accounts controlled by Kapoor and Lillaney.
Authorities allege the scheme began in 2021 and generated approximately $3 million in illicit proceeds.
“As alleged, these two men used thousands of stolen identities to open online gambling accounts and exploit new user incentives, which for several years allowed them to gamble with stolen money,” said David Sullivan, U.S. Attorney for the District of Connecticut. “Their winning streak is now over.”
IRS Criminal Investigation Special Agent in Charge Thomas Demeo added that identity theft on this scale causes severe harm to victims and said the agency remains committed to uncovering complex financial and money laundering schemes.
Kapoor and Lillaney were arrested on Friday, Feb. 6, and each was released on a $300,000 bond.
