Internet firm guilty of money laundering

WASHINGTON, July 21 (UPI) -- An Internet digital currency business, E-Gold Ltd., and three principal directors, admitted to money-laundering charges, U.S. prosecutors said Monday.

E-Gold and its corporate affiliate, Gold & Silver Reserve Inc., pleaded guilty to conspiracy to engage in money laundering and conspiracy to operate an unlicensed money transmitting business, U.S. Justice Department officials said.

Dr. Douglas Jackson, 51, of Melbourne, Fla., the principal director of E-Gold and chief executive officer of Gold & Silver Reserve Inc., and E-Gold's other two senior directors, Barry Downey, 48, of Baltimore, and Reid Jackson, 45, of Melbourne, pleaded to related charges, the prosecutors said.

The companies and three directors were indicted by a federal grand jury April 24, 2007.

E-Gold and Gold & Silver Reserve face a maximum fine of $3.7 million. Douglas Jackson faces up to 20 years in prison and a fine of $500,000. Downey and Reid Jackson each face a maximum of five years in prison and a $25,000 fine.

As part of the plea, E-Gold and Gold & Silver Reserve also agreed to a pay a judgment of $1.75 million.

Sentencing for all defendants has been set for Nov. 20.