Legal Battle Ensues Over Seized Assets in Canadian Sports Betting Ring Case

The London Free Press reported that Dimitris Kellesis’ lawyer claims there is no evidence linking him to the alleged sports betting ring and that the cash came from gifts, loan repayments, and savings over years of work in a family that had a distrust of banks. However, the province argues that the man’s connection to the alleged gambling ring means the assets should be seized. 

Ontario’s Forfeiture Law Put to Test as Canadian Government Fights for Seized Assets

The hearing is the first of several as the Canadian authorities attempt to keep money, silver, gold, jewelry, high-end vehicles, and luxury homes seized from what police call the biggest illegal online sports gambling ring in Canada.

Police say the sophisticated operation controlled at least 14 sports-betting websites and took in more than $160 million in revenue over a six-year period before police shut it down and seized $40 million in assets. The high-profile bust fizzled in the court system, where most charges were withdrawn over the last year, including all counts facing the alleged ringleaders.

The Canadian government is now fighting to keep most of the seized assets under Ontario’s forfeiture law. However, the existence of the alleged gambling ring hasn’t been proven in court, nor have the seized assets been proven to be linked to the proceeds of crime.

Canadian Authorities Seize Assets from Alleged Partners of Illegal Gaming House Operation

According to Canadian authorities’ documents filed earlier to keep the assets, investigators began watching a unit in Mississauga in October 2018. Police identified four partners involved in the gaming house, including Kellesis, who showed up almost daily to lock and unlock the doors. 

Kellesis transferred profits to organization leaders through another man who showed up at the gaming house to exchange bags, believed to hold the operation’s profits, with other individuals who would later be charged. Police obtained search warrants for Silver Creek and Kellesis’s Mississauga home, where they arrested him and say they seized $270,000 bundled with elastic bands, electronic devices, and debt lists.

The Canadian government has been using forfeiture laws more frequently to seize assets connected with illegal activities and, as a result, has significantly increased the number of cases it handles. The process allows authorities to seize assets even when they cannot prove that a specific individual committed a crime. The forfeiture law, therefore, plays a crucial role in deterring illegal activities and in recovering the proceeds of crime.