Bank Targeted in Black Friday Indictments Shut Down by State Regulators

Most of the major damage of the Black Friday indictments has been felt in the poker world, it's also true that several of the indicted individuals were associated with banks and payment processors who were also affected by the US government crackdown on the online poker industry. Last week, one bank that was deeply involved in the allegedly illegal activities felt the full impact of their association with the targeted poker sites.

SunFirst Bank, a Utah-based bank that had a prominent officer indicted on Black Friday, was shut down by state regulators late last week. The shutdown comes months after the bank's Vice Chairman, John Campos, was indicted for processing transactions for PokerStars, Full Tilt Poker and Absolute Poker.

It appears that Campos' willingness to get the bank involved in activities which were likely illegal -- and certainly an attempt to avoid attention from federal authorities -- may have had something to do with the financial difficulties facing the bank. According to a report at CardPlayer.com, SunFirst Bank lost $2.7 million over the first six months of 2011.

Reportedly, Campos began allowing the poker sites to process transactions through the bank after a request by businessman Chad Elie. Both Campos and Elie were arrested within hours of the indictments being made on April 15. Both were released on bail -- $25,000 for Campos, and $250,000 for Elie.

The Black Friday indictments were made primarily due to attempts by major poker sites to work around the Unlawful Internet Gambling Enforcement Act (UIGEA), which sought to prevent financial transactions between online gambling companies and banks based in the United States. The sites were using banks such as SunFirst to process player deposits and withdrawals, often disguising deposits as purchases of items such as golf equipment or other products.