More SNMM news:
update VANCOUVER--Police investigating Starnet Communications International, an Internet gambling and
pornography company, said they expect criminal charges to be filed in connection with Friday's raid of the company's
offices.
Starnet shares had risen as much as 34 percent this morning after the company said no arrests had been made. The shares
finished up 0.59 at 5.25.
"Charges are definitely pending," Vancouver police spokeswoman Anne Drennan said in an interview. "Right now the investigators
are going over the information that's been seized over the weekend."
British Columbia's Coordinated Law Enforcement Unit is investigating possible betting and bookmaking offenses by Starnet and
allegations that it distributed illegal pornography over the Internet.
Executives at Starnet, who had downplayed the investigation in a statement earlier today, couldn't immediately be reached to
comment.
"We do not expect this investigation to have any serious long-term effects on our operations, our customers, or our business and
financial relations," chief executive Mark Dohlen had said in a statement. "Our plans to grow and expand our business remain
intact."
Drennan said she didn't know when charges will be filed and that they could be weeks or months away.
The Vancouver-based company said its legal counsel hasn't been notified of any charges and that the company is cooperating in
the investigation. It also said its online gambling and pornography businesses are operating again after police searches caused
"minor interruptions" over the weekend.
Drennan said that 50 officers searched Starnet's headquarters, from Friday through Sunday night. The homes of six Starnet
executives and directors also were searched. The Royal Canadian Mounted Police and officers from the cities of Vancouver, West
Vancouver, and Delta participated in the raid and the 18-month investigation that led up to it.
Starnet today denied any association with child pornography.
"Certain media reports have stated or implied Starnet's involvement with illegal and reprehensible child pornography," Dohlen said.
"I state without fear of contradiction that our company eschews this practice and has in place a policy that forbids such illegal
commerce by this organization."
Dohlen also said he doesn't expect any more searches of Starnet headquarters, based on what police have told the company.
Starnet shares have risen more than eightfold over the past year on expectations that millions of people around the world will
gamble on its Internet betting sites and on other online casinos that license software developed by Starnet.
Because of legal restrictions in the United States and Canada, the company has said it doesn't take bets from U.S. or Canadian
residents. It's also set up its gambling unit in Antigua, West Indies.
Starnet has said it plans to sell its pornographic Web sites to focus on its gambling business.
Copyright 1999, Bloomberg L.P. All Rights Reserved.
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