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APPROVED: ________________________________

BART G. VAN DE WEGHE
STANLEY J. OKULA, Jr.
Assistant United States Attorneys


BEFORE: HONORABLE GEORGE A. YANTHIS
United States Magistrate Judge
Southern District of New York

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UNITED STATES OF AMERICA

           - v. -

CHRISTOPHER HARN,
DERRICK DAVIS, and
GLEN DaSILVA,

Defendants.
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COMPLAINT

Violation of

18 U.S.C. §§ 371, 1343



County of Offense:

Dutchess

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SOUTHERN DISTRICT OF NEW YORK, ss.:

JORGE PLATA, being duly sworn, deposes and says that he is aninvestigator with the New York State Police, and charges asfollows:

     1.      From on or about September 1, 2002, up to and includingthe date of the filing of this Complaint, in the Southern Districtof New York and elsewhere, CHRIS HARN, DERRICK DAVIS and GLENDaSILVA, the defendants, together with others known and unknown,unlawfully, willfully, and knowingly combined, conspired,confederated, and agreed together and with each other to violateTitle 18, United States Code, Section 1343.

      2.     It was a part and an object of the conspiracy that CHRISHARN, DERRICK DAVIS and GLEN DaSILVA, the defendants, and othersknown and unknown, having devised and intending to devise a schemeand artifice to defraud, and for obtaining money and property bymeans of false and fraudulent pretenses, representations andpromises, unlawfully, intentionally and knowingly did transmit andcause to be transmitted by means of wire communication ininterstate commerce, writings, signs, signals, pictures and soundsfor the purpose of executing such scheme and artifice, in violationof Title 18, United States Code, Section 1343.

Overt Acts

      3.      In furtherance of the conspiracy, and to effect theillegal object thereof, the following overt acts, among others,were committed in the Southern District of New York and elsewhere:

           a.      On or about October 3, 2002, GLEN DaSILVA, thedefendant, sent an application to open an Off-Track Betting ("OTB")account with Catskill OTB from Manhattan, New York, to Pomona,Rockland County, New York, via facsimile transmission.

           b.      On or about October 3, 2002, GLEN DaSILVA, thedefendant, caused a "pick four" wager to be placed through hisCatskill OTB account on horse races using a touch tone telephonewagering system routed to a number assigned to a Catskill OTB huboperated by Autotote Systems, Inc., in Poughkeepsie, DutchessCounty, New York.

           c.      On or about October 3, 2002, approximately $1,757was credited to the Catskill OTB account of GLEN DaSILVA, thedefendant, as a result of the wager described in Overt Act (b)above.

           d.      On or about October 5, 2002, GLEN DaSILVA, thedefendant, caused a "pick six" wager to be placed through hisCatskill OTB account on horse races using a touch tone telephonewagering system routed to a number assigned to the Catskill OTBAutotote hub in Poughkeepsie, New York.

           e.      On or about October 5, 2002, GLEN DaSILVA, thedefendant, caused approximately $107,608 to be credited to hisCatskill OTB account as a result of the wager described in OvertAct (d) above.

           f.      On or about October 7, 2002, GLENN DaSILVA, thedefendant, sent a facsimile transmission from Manhattan to CatskillOTB in Pomona, New York, requesting an $80,000 check.

           g.      On or about October 15, 2002, GLEN DaSILVA, thedefendant, deposited a check in the amount of $80,000, whichrepresented most of the net proceeds of the wager described inOvert Act (f) above, into his Citibank account number 12886734 inManhattan, New York.

           h.      On or about October 18, 2002, DERRICK DAVIS, thedefendant, sent an application to open an OTB account with CatskillOTB from Maryland to Pomona, New York, via facsimile transmission.

           i.      On or about October 26, 2002, CHRISTOPHER HARN, thedefendant, used a computer at his place of employment, AutototeSystems, Inc., located in Newark, Delaware, to access the CatskillOTB Autotote hub in Poughkeepsie via modem.

           j.      On or about October 26, 2002, DERRICK DAVIS, thedefendant, caused a "pick six" wager to be placed through hisCatskill OTB account on horse races held at the Breeders' Cuplocated at Arlington Park near Chicago, Illinois, using a touchtone telephone betting system routed to a number assigned to theCatskill OTB Autotone hub in Poughkeepsie, New York.

           k.      On or about October 26, 2002, DERRICK DAVIS, thedefendant, caused approximately $3,067,821 to be credited to hisCatskill OTB as a result of the wager described in Overt Act (j)above.

(Title 18, United States Code, Section 371.)

The basis for my knowledge and the foregoing charges is, inpart, as follows:

      4.      I am an investigator with the New York State Police, andhave been so employed for approximately sixteen years. Forapproximately the last two weeks, I have been assigned to what hasevolved into a joint federal and state investigation intofraudulent wagering, specifically involving bets placed by wire(i.e., essentially, telephone and computer) on horse races. Todate, the investigation has uncovered well over $3 million inwinnings generated by bets fraudulently placed.

      5.      This affidavit is based on my conversations with otherlaw enforcement agents and witnesses, and my examination of reportsand records. Because this affidavit is being submitted for alimited purpose, I have not included details of every aspect ofthis investigation. Indeed, while providing the Court with enoughinformation to establish probable cause that criminal offenses havebeen committed, I have been especially mindful of security concerns-- i.e., of the need to limit unnecessary public dissemination ofinformation that could be used by would-be perpetrators of fraud toattempt to compromise the integrity of the computer wageringsystem. Moreover, where the contents of documents and the actions,statements, and conversations of others are reported herein, theyare not reported verbatim, but in substance and in part.

BACKGROUND

      6.      During the course of my investigation, I have learned howcertain types of wagers are placed and processed for horse racesheld around the country. A company known as Autotote Systems,Inc., headquartered in Newark, Delaware (hereinafter "Autotote"),processes a large percentage of wagers placed on horse races inNorth America. Numerous satellite or "hub" wagering franchisesoperated locally around the United States are affiliated withAutotote, which in turn acts as a central processing center forwagers that are placed by bettors through the hub franchises. These hubs provide wagering customers the opportunity to utilizeopen accounts for placing wagers through those accounts on horseraces held throughout the country. One of the hub operationsaffiliated with Autotote is Off-Track Betting Company located inNew York (hereinafter "OTB"). Catskill OTB is an OTB franchiseheadquartered in Pomona, New York. Autotote provides on-siteservices to Catskill OTB by maintaining a hub for Autotote inPoughkeepsie, New York, which is used for operating Catskill OTB'swagering system.

      7.      One of the ways in which OTB account holders can placewagers is through the use of an Interactive Voice Recognitionsystem (hereinafter "IVR"). The IVR is operated primarily by usinga touch tone telephone to dial the access number and place wagesthrough customer accounts held at the hub locations using the touchtone numbers on the telephone to enter data. The wagers placedthrough the IVR system for the Catskill OTB accounts areelectronically entered by the customer by calling a number routedto the Catskill OTB Autotote hub in Poughkeepsie, New York. Thewagering data is then entered via the IVR system and is maintainedin the Autotote computer system at the Poughkeepsie hub for aperiod of time.

      8.      At some point during the day of a particular horse racingevent, the wagering data entered via the IVR system and maintainedby the Catskill OTB Autotote hub in Poughkeepsie is "scanned" byAutotote, which in turn transmits the data related to any winningtickets to the entity hosting the particular racing event, or thehost track. That data is then used by the host track to sort thedata related to the winning tickets and, ultimately, to pay thewinning customers.

      9.      CHRISTOPHER HARN, the defendant, was a senior computerprogrammer with Autotote in Newark, Delaware, until he wasdismissed from his employment at Autotote on October 30, 2002. Prior to that, HARN was involved in upgrading Autotote's computersystems for the purpose of implementing the IVR wagering systeminstalled at Autotote during April and May of 2002. HARN also hadaccess, through his Autotote employment, to data collected via theIVR system and held at various Autotote hub locations, includingCatskill OTB in Poughkeepsie, New York. HARN was able to accessthat data from Newark, Delaware, through a modem connection withthe Catskill OTB location in Poughkeepsie.

THE INVESTIGATION

      10.      On Saturday, October 26, 2002, the annual Breeders' Cuphorse races were held at Arlington Park located in the outskirts ofChicago, Illinois. The Breeders' Cup features a series ofprominent horse races that attract international attention andwidespread wagering, including off-track wagering through servicessuch as OTB in New York. Because of a variety of unusual andsuspicious circumstances (some of which are further describedbelow), particular attention was drawn to a "pick-six" bet - i.e.,a wager that requires the bettor to pick the winning horse in sixdifferent races - which paid approximately $3 million dollars tothe person who placed the bet, the defendant DERRICK DAVIS.

      11.      DAVIS's betting pattern for the Breeders' Cup races washighly unusual. In the first four of the six races, his betsfeatured "singles," i.e., the selection of only one horse to wineach of the first four races of the six-race ticket. For the lasttwo races, DAVIS picked every horse entered in each of those racesto win, which is known as playing "the field". DAVIS bet $12 on a"pick six" ticket using that particular combination of picking thewinning horses and strategy, which cost DAVIS a total of $1,152based upon the number of combinations he played with that ticket. That "pick six" ticket attributed to DAVIS resulted in a winningcombination for all six races purportedly selected on that ticket. The payoff for that ticket was approximately $3,067,821. DAVIS,who had an account with Catskill OTB, placed his "pick six" betsusing the IVR system.

      12.      Due to the unusual wagering pattern apparent from DAVIS'pick six tickets, investigators with the New York State Racing andWagering Board, together with officers from several state andfederal law enforcement agencies, including the New York StatePolice and the Federal Bureau of Investigation, began toinvestigate the circumstances surrounding DAVIS' alleged winning"pick six" ticket as well as other potentially suspicious winningtickets in past races. In connection with that investigation, itwas determined that CHRISTOPHER HARN reported to work at Autototein Newark, Delaware, on October 26, 2002, even though he was notscheduled to work on that day. During the time that HARN was atAutotote on October 26, he accessed the Autotote system at theCatskill OTB hub in Poughkeepsie from Newark, Delaware, via modemconnection. According to Catskill OTB Autotote hub and Autototeemployees in Newark, Delaware, HARN had access to the Catskill OTBwagering data during the same time that the Breeders' Cup races forthe "pick six" tickets that DERRICK DAVIS purchased via the IVRsystem were being electronically maintained at the Catskill OTBAutotote hub in Poughkeepsie.

      13.      Telephone records indicate that calls were placed from acellular telephone number subscribed to in the name of DERRICKDAVIS to a cellular telephone number subscribed to in the name ofCHRISTOPHER HARN on October 26, 2002, during the time that theBreeders' Cup races were being run. Records also establish thatcalls were made from HARN's cellular telephone phone to the IVRsystem routed to the Catskill OTB Autotote hub in Poughkeepsie ator near the time that the alleged winning wager was placed throughDAVIS's Catskill OTB account. In addition, an Autotote employee inNewark, Delaware, has told investigators that he saw HARN receiveon or more calls on his cellular telephone on October 26, 2002,during the same time period that HARN had accessed the Catskill OTBhub in Poughkeepsie via computer in Newark, Delaware.

      14.      Investigators have determined that CHRISTOPHER HARN,GLENN DaSILVA and DERRICK DAVIS all attended Drexel University inPhiladelphia together during the early 1990s. All three defendantspledged at the Tau Kappa Epsilon ("TKE") fraternity in 1992.

      15.      The investigation further determined that GLENN DaSILVA,the defendant, had won bets on horse races by using unusual "pickfour" (i.e., the bettor picks one winning horse in each of thefirst two races and all of the horses in each of the last tworaces) and "pick six" combinations similar to those used by DERRICKDAVIS in placing his wagers on October 26, 2002.

      16.      According to records obtained by investigators, GLENNDaSILVA opened a Catskill OTB account on October 3, 2002. DaSILVAopened the account by faxing an application obtained via theInternet from a number in Manhattan, New York, to Catskill OTBheadquarters in Pomona, New York. DaSILVA then used the account topurchase a "pick four" ticket using the IVR system. The "pickfour" combination allegedly reflected on DaSILVA's ticket resultedin a winning combination which paid $1,757 to DaSILVA's account.

      17.      On October 5, 2002, DaSILVA, again using the IVR system,purchased several "pick four" and "pick six" tickets through hisCatskill OTB account. One of the "pick six" combinations allegedlyreflected on DaSILVA's ticket was similar to that described aboveas to DERRICK DAVIS' allegedly winning "pick six" ticket on October26, 2002, i.e., DaSILVA picked one winning horse in each of thefirst four races and bet on all of the horses in the last tworaces. That ticket allegedly resulted in a winning combinationpaying $107,608 to DaSILVA's account. On October 7, 2002, DaSILVAsent a facsimile transmission from a number in Manhattan toCatskill OTB headquarters in Pomona requesting payment of $80,000. On October 8, 2002, Catskill OTB sent DaSILVA a check for $80,000,which represented most of the net proceeds of his allegedly winning"pick six" ticket (after deductions for taxes and fees). DaSILVAdeposited the check into his Citibank account number 12886734,located at a branch in Manhattan, on or about October 15, 2002.

      WHEREFORE, deponent prays that a warrant be issued for thearrest of the above-named individuals and that they be arrested andimprisoned or bailed as the case may be.

JORGE PLATA
Investigator
New York State Police


Sworn to before me this
8th day of November, 2002


UNITED STATES MAGISTRATE JUDGE
SOUTHERN DISTRICT OF NEW YORK





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