Fallen internet entrepreneur Daniel Tzvetkoff [pictured right], the former CEO of online adult processor Merchant Solutions, who was once worth an estimated $80 million – has been forced to rely on the help of his father to win bail after being arrested in the United States on charges of money laundering.

Tzvetkoff, whose internet payments company Intabill collapsed in March last year with $80 million of debts, was arrested late last week on charges that he helped online gambling companies launder $US540 million into offshore accounts.

Daniel Tzvetkoff was granted bail yesterday only after his father Kim agreed to put his home on the line as surety.

But Judge Peggy Leen imposed strict conditions on Tzvetkoff. He will have to surrender his passport, wear a GPS tracking bracelet and observe a strict curfew.

Tzvetkoff was released into his father’s custody and then the pair will drive from Las Vegas to New York, where his trial will be held.

Tzvetkoff has been charged with bank fraud, money laundering, conspiracy and other charges that carry a potential penalty of 75 years in prison.

The US Department of Justice alleges Tzvetkoff tried to get around US internet gambling laws (betting online is illegal in the US) by trying to disguise gambling transactions.

Tzvetkoff, who filed for bankruptcy last year, was listed on the BRW Young Rich list with a fortune of $80 million (shared with Sciacca) but has been forced to sell a string of luxury assets, including a Gold Coast mansion, a Brisbane nightclub and his black Lamborghini.

Back story Brisbane Times: Failed Gold Coast IT entrepreneur Daniel Tzvetkoff allegedly told his co-conspirators their scheme to help illegal gambling companies launder $540 million was “perfect”.

The Ipswich-born businessman was arrested in Las Vegas last Friday on charges he created dozens of so-called “shell companies” to allow illegal gambling networks to wire funds to offshore accounts.

Mr Tzvetkoff, who was arrested at the lavish Encore Hotel in Las Vegas on Friday, faces four charges – including bank fraud, money laundering, and conspiracy to operate and finance an illegal gambling business – that carry a potential penalty of 75 years in prison.

Mr Tzvetkoff’s lawyer Mace Yampolsky told brisbanetimes.com.au the former BRW Young Rich List millionaire, who had a reported personal wealth of $82 million in 2008 before filing for bankruptcy this year, was in a fragile emotional state.

“Obviously he’s distraught. He came to Las Vegas for a vacation really and now he is in custody,” Mr Yampolsky said.

“He has been in better spirits.”

The United States Department of Justice has accused Mr Tzvetkoff, 27, of creating “phony websites” that made the companies seem legitimate and “represented to the banks that the…transactions were on behalf of these companies”.

“On May 3, 2008, one of Tzvetkoff’s co-conspirators in an email [allegedly] told Tzvetkoff that he had hired programmers to develop `unique’ websites for the shell companies so that if someone was `checking the companies out, there is absolutely no way to tie the companies together’,” a statement by the Department of Justice says.

“Tzvetkoff [allegedly] responded: `This is all perfect!’.”

The Department of Justice has alleged Mr Tzvetkoff used what is known as the “Automated Clearing House system” to run hundreds of millions of dollars between the US and a web of companies in the British Virgin Islands.

Prosecutors said Mr Tzvetkoff stopped processing transactions in March 2009 after leading gambling websites accused him of stealing $US100 million.

Mr Yampolsky said a bail hearing was due be heard on Tuesday in Las Vegas.

“We’re really in the preliminary stages. He made his initial appearance in Federal Court in Las Vegas [last] Friday,” he said.

“Right now our focus is on attempting to fashion some release conditions so he can get out of custody.

“The problem is … he is an Australian national … based on that he is considered a flight risk.”

The entrepreneur found his fortune in the company IntaBill – an online payments service – with former business partner Sam Sciacca [pictured left], which at its peak employed 120 people in its Milton office.

But his opulent lifestyle began to unravel when Mr Sciacca sued Mr Tzvetkoff last year for a reported $80 million for failing to keep accurate financial records.

Mr Tzvetkoff was forced to sell his share of Brisbane nightclub Zuri Lounge

The arrest follows an investigation by the Federal Bureau of Investigation and a legal stoush with US-based gambling company Kolyma Corporation, which claims Mr Tzvetkoff withheld $52 million in payments.

Mr Tzvetkoff’s former lavish lifestyle included the aquisition of an exclusive Hedges Avenue home, on the Gold Coast; a 98-foot super yacht; and a black Lamborghini.