In a sweeping federal indictment that has captured attention across the online gambling world, two men from Connecticut have been charged with orchestrating a large-scale fraud operation that allegedly siphoned off nearly $3 million from online sportsbooks, including popular operator FanDuel.
According to prosecutors, the scheme—spanning several years and involving about 3,000 stolen identities—was designed to exploit promotional offers intended for legitimate new users of online betting platforms.
The Allegations
Federal authorities say the suspects, identified as Amitoj Kapoor and Siddharth Lillaney, both 29 and residents of Glastonbury, Connecticut, used personally identifiable information (PII) taken from identity theft victims to create fraudulent accounts on gambling sites such as FanDuel, DraftKings and BetMGM.
Prosecutors allege the men obtained the stolen data through darknet markets and encrypted messaging platforms like Telegram. They also reportedly used background-check services to gather additional information needed to pass identity verification checks when opening accounts.
Once accounts were established, investigators say Kapoor and Lillaney repeatedly took advantage of “new user” bonuses and promotional credits—benefits intended to attract legitimate bettors—to place bets using these fraudulent accounts. When bets funded by promotional credits won, the proceeds were transferred to virtual stored-value cards, which were allowed by FanDuel for deposits and withdrawals, and then moved into bank and investment accounts under their control.
Scale of the Scheme
Court filings allege that the fraud began as early as 2021 and continued undetected for several years. During that time, the pair are believed to have opened accounts using data from roughly 3,000 identity theft victims, generating nearly $3 million in illicit gains.
The case has drawn attention not only for the amount of money at stake but also for the sophistication and sheer volume of personal data allegedly misused. The indictment outlines 45 federal counts including wire fraud, identity fraud, and money laundering. Convictions on these charges could potentially lead to lengthy prison sentences, with some counts carrying up to 20 years behind bars.
Arrest and Court Proceedings
Kapoor and Lillaney were arrested earlier this month in Connecticut after a federal grand jury returned the indictment. Both appeared before U.S. Magistrate Judge Maria E. Garcia in New Haven and were released on $300,000 bonds pending further proceedings.
Officials from the U.S. Attorney’s Office for the District of Connecticut, the Internal Revenue Service’s Criminal Investigation division, and the Connecticut Department of Consumer Protection have all been involved in the multi-agency probe. Authorities say the case initially started as a gaming-related investigation but quickly expanded as the extent of the alleged identity theft became clear.
Impact on Victims
The operation’s reach appears to extend well beyond just the gambling industry. Victims whose identities were misused could face long-term challenges such as credit damage, difficulty securing loans, or complications in employment background checks.
State regulators have already issued identity theft notices to more than 1,200 individuals, and officials are urging anyone who believes they may have been affected to report it to IdentityTheft.gov and take steps to protect their personal information.
What Comes Next
As the case moves through the federal court system, prosecutors will likely continue gathering evidence and reinforcing their charges. Both defendants are presumed innocent until proven guilty in court.
The alleged fraud scheme has underscored the complex challenges facing online gaming platforms as they balance customer acquisition incentives with fraud prevention, and highlights the continuing threats posed by identity theft in the digital age.
