Connecticut Duo Accused of $3 Million Online Gambling Fraud Using Stolen Identities from 3,000 Victims

By Perplexity News Staff | February 13, 2026

New Haven, CT – Two 29-year-old residents of Glastonbury, Connecticut, face federal charges in a sprawling fraud scheme that allegedly netted them $3 million by exploiting new-user promotions on major online gambling platforms like FanDuel, DraftKings, and BetMGM.

Amitoj Kapoor and Siddharth Lillaney were indicted on February 3, 2026, by a federal grand jury in New Haven on a 45-count indictment including conspiracy to commit wire fraud, wire fraud, identity fraud, aggravated identity theft, money laundering conspiracy, and money laundering. The duo was arrested shortly after and released on $300,000 bonds each following appearances before a U.S. magistrate judge.[1][2]

Scheme Involved Darknet Purchases and Stolen Data

Prosecutors allege that Kapoor and Lillaney purchased personally identifying information (PII) on thousands of individuals through darknet marketplaces and the Telegram messaging app. This stolen data from approximately 3,000 victims was used to create fraudulent gambling accounts that qualified for lucrative bonuses, credits, and free bets offered to new users.[1]

To bypass identity verification processes, the defendants subscribed to background-check services such as BeenVerified and TruthFinder, enabling them to impersonate victims convincingly enough to withdraw funds. The illicit proceeds were then funneled into bank and investment accounts under their control, according to court filings.[1]

Broader Implications for Online Gambling and Identity Theft

Federal prosecutors emphasized the scheme’s expansive scope, noting it extended beyond gaming companies due to the massive volume of stolen identities involved. “This was not a victimless crime,” U.S. Attorney Vanessa R. Ty-son stated in a release, highlighting the violation of thousands of individuals’ privacy and financial security.[2]

The case underscores growing concerns over cyber-enabled fraud in the booming online sports betting industry, which has seen explosive growth since legalization in many states. Platforms like FanDuel and DraftKings have invested heavily in fraud detection, but schemes like this exploit promotional incentives designed to attract legitimate customers.[1]

Charges Carry Severe Penalties

The indictment outlines a multi-year operation where the pair systematically targeted promotions, laundering profits through various financial channels. If convicted, the defendants face decades in prison. Wire fraud carries up to 20 years, identity theft up to 15 years, aggravated identity theft a mandatory two-year consecutive sentence, and money laundering up to 20 years per count.[1]

Key Charges in the 45-Count Indictment

Charge	Maximum Penalty
Conspiracy to Commit Wire Fraud and Identity Fraud	20 years
Wire Fraud	20 years
Identity Fraud	15 years
Aggravated Identity Theft	2 years (mandatory, consecutive)
Money Laundering Conspiracy	20 years
Money Laundering	20 years

Official Statements and Victim Impact

Authorities stressed that all charges are allegations, and the defendants are presumed innocent until proven guilty. IRS Criminal Investigation Special Agent in Charge Thomas Demeo noted the collaborative effort to dismantle such sophisticated operations.[2]

While the original report referenced a single Connecticut man losing $950,000 after a cryptocurrency solicitation—possibly alluding to a victim or related scam—the federal case centers on Kapoor and Lillaney as perpetrators. No direct link to cryptocurrency fundraising was detailed in the indictment, though laundering involved financial transfers.[1]

“The defendants allegedly preyed on both gambling companies and innocent Americans whose identities were stolen without their knowledge.” – Federal prosecutors[1]

Context in Connecticut’s Fraud Landscape

This indictment is part of a series of high-profile fraud cases in Connecticut. Related DOJ releases mention a Wolcott man charged in a separate cryptocurrency fraud scheme and other scams targeting the elderly. Additionally, a 73-year-old Middlefield resident admitted to a $2.5 million fraud scheme, illustrating the state’s ongoing battle against financial crimes.[2]

Glastonbury men Kapoor and Lillaney’s arrests come amid heightened scrutiny of online gambling vulnerabilities. Industry experts warn that bonus-hunting fraud remains a persistent threat, costing operators millions annually and eroding consumer trust.

Next Steps in the Case

The defendants are scheduled for further proceedings in U.S. District Court in New Haven. Investigations continue, with potential for additional charges or co-conspirators. Victims whose data was compromised may be notified as authorities work to mitigate fallout.[1][2]

This case serves as a stark reminder of the dark underbelly of digital betting: while promotions fuel growth, they also attract criminals wielding stolen identities from the shadows of the dark web.

This story will be updated as new developments emerge.