The owner of two payment processing companies linked to online gambling websites is now out more than $13 million. Ahmad Khawaja agreed to forfeit $13.3 million that had been seized by the FBI in June of 2009 in order for his case to be settled.

Khawaja owns Allied Wallet and Allied Systems, two online payment processors that the U.S. federal government claimed were used to launder money. Specifically, the payment processors were accused of using overseas banks, mostly those in Cyprus, to funnel money back and forth between online gambling websites, such as Poker Stars, and the players.

Whether there is anything wrong with processing payments for online gambling is a gray area in the United States. UIGEA was passed in 2006, but it never defines what constitutes unlawful online gambling and no federal ban exists. Still, in the name of UIGEA, Khawaja was targeted and prosecuted for processing those payments and laundering money.

After settling the case with the authorities, Allied Wallet and Allied Systems are still accepting payments, though it is not known whether they will still be associated with online gambling sites such as Poker Stars.

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