PHOENIX, ARIZONA– Nine Arizona residents on Thursday were indicted in a multi-million dollar internet gambling ring, and they now face a 21-count indictment, prosecutors said.

The accused used internet-based offshore sports books located in Costa Rica for making and tracking bets on sporting events, providing their bettors with a toll-free telephone number and a website.

In order to place a wager on a sporting event, the bettor would call the number or access the website, then provide their account number and password. The individuals would use a separate toll-free telephone number, or the website, to track their bettors’ activities and account balances.

The Costa Rican sports books did not have an interest in the outcome of the wagers, but charged the illegal sports gambling operation a fee for managing each bettor’s account.

The paid out or collected cash in person from each bettor whenever that bettor’s threshold amount was reached. Sometimes instead of cash the individuals would accept checks or valuables, and at other times they would direct bettors to deposit money into specified bank accounts to pay gambling debts.

Daniel Meisel, 64, formerly of Paradise Valley, Arizona, as the indictment explained, was the head of an internet gambling ring that raked in millions of dollars since 2007. He was the principal bookmaker who acted as the bank or house for the operation, and had a number of agents working under him who all had bettors that they serviced.

Christopher R. Finn, 37, of Scottsdale, Arizona acted both at the direction of Meisel and had his own sub-operation as part of the overall gambling ring. The other seven indicted individuals were all agents in the gambling operation, reporting to either Meisel or Finn.

The indicted include Diane Beck, 52, Fred Guaragna, 58, Richard DiCapua, 68, and Oscar Barden, aka Paul Barden, 36, all of Scottsdale, Arizona; Brad Smothermon, 49, of Cave Creek, James Baker, 41, of Peoria and Blaine Moore, 38, of Phoenix, all in the state of Arizona.

All nine were charged with conspiracy to engage in an illegal gambling business and the transmission of wagering information, engaging in an illegal gambling business, and transmission of wagering information.  Meisel was also charged with transactional money laundering.

“Running an illegal gambling business is a crime,” said Dennis K. Burke, U.S. Attorney for the District of Arizona. “These defendants bet that they wouldn’t get caught. They lost.”

Convictions for conspiracy and engaging in an illegal gambling business each carries a maximum penalty of five years. A conviction for transmission of wagering information carries a maximum of two years for each count, while a conviction for transactional money laundering carries a maximum penalty of ten years for each count. Additionally, each count carries a maximum fine of $250,000.