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Twin Cities fraudster charged with running North Dakota gambling business


FARGO (KFGO-AM) - A federal grand jury has indicted a Bloomington, Minn. man for allegedly running an illegal gambling operation in North Dakota. A newly-unsealed indictment says 68-year-old Gerald Greenfield ran an illegal sports betting business for four years, beginning in 2007.

KFGO News has exclusively obtained a federal search warrant affidavit that says an informant told investigators Greenfield received approximately $10 million each year in wagers and made an annual profit of between $500,000 and $600,000. The affidavit says Greenfield discussed receiving "several million (dollars) in action" each year from gamblers in Fargo.

Greenfield told an undercover agent that computer servers for the gambling business were located in Costa Rica. Participants were instructed to classify their bets as "investments" on wiring documents.

Greenfield is also accused of illegally transmitting wager information and money laundering. He was previously convicted for his role in a high-profile mortgage fraud scheme in the Twin Cities.

Last year, Greenfield escaped from a minimum security federal prison in Duluth, Minn. He had been serving a 50-month sentence. Greenfield was captured six days later and remains in federal custody.

Greenfield's attorney, Frederic Bruno, says he hasn't yet read the indictment and declined comment.