( CNN ) -- Federal authorities say they 've cracked an international gambling ring calling itself Macho Sports , whose customers would place bets with bookies , by phone and online and -- if they lost -- risked paying a painful price . Authorities allege in the indictment , which was filed in the U.S. District Court for Southern California , that the illicit gambling company curried a `` violent reputation '' for its use of `` intimidation , threats and violence . '' In addition to the Peru-headquartered organization itself , 18 individuals face racketeering and illegal gambling charges , states the indictment . The former is punishable by up to 20 years in prison , while the latter charge carries a maximum five-year prison sentence . Fifteen of those individuals were arrested earlier Wednesday in Southern California ; Oslo , Norway ; and Lima , Peru , the U.S. Attorney 's Office for Southern California said in a press release . Authorities took Jan Harald Portocarrero , one of the alleged ringleaders , into custody Wednesday night , said U.S. Attorney 's office spokesman Andrew Schopler . At that time , two other people -- Young Hee Koh and Dunzmy June Nguyen -- remained at large , Schopler said . `` Criminal enterprises like 'Macho Sports ' and their U.S. based 'bookmakers ' prey on gambling addictions of their betting customers , wreaking havoc on people 's lives and the lives of family members , '' Daphne Hearn , special agent in charge of the FBI 's San Diego office , said in a press release . Brothers Jan Harald Portocarrero and Erik Portocarrero , originally from California , set up Macho Sports International in Panama in 2002 , according to Panamanian public documents cited in U.S. authorities ' probable cause statement . The company moved its headquarters six years later to Peru , where the Portocarreros had family , though its customers were in California and elsewhere . Over the past decade , customers were invited to place bets on sporting events -- from NFL games to mixed-martial arts fights -- either through a system of bookies , by calling a toll-free phone number or through personal accounts set up on two Internet sites . Macho Sports employed phone operators , bookies , `` sub-bookies , '' runners and collectors to deliver winnings and collect debts from customers , U.S. authorities explained . The probable cause statement features excerpts of several phone wiretaps . In one , a bookie openly worries that he might get arrested , to which Jan Harald Portocarrero replies , `` It 's not that easy . '' The bookie responds , `` Yeah , but you 're 8,000 miles away . You 're untouchable . '' People involved in Macho Sports spoke about gambling-debt collectors ' sometimes violent tactics . Jan Harald Portocarrero , for instance , referred to one who he said `` kidnaps people , strikes them with a gun , and he 's walking the streets . '' The federal complaint claims that proceeds were laundered `` by inducing customers to pay their gambling losses to various entities that appeared to be unrelated to Macho Sports , such as check-cashing businesses . CNN 's Elwyn Lopez contributed to this report .
NEW : Other alleged ringleader is detained ; 18 of the 2 charged are at large , spokesman says . Set up in U.S and later moved to Peru , Macho Sports ' had customers in U.S . They could bet on sports events through bookies , by phone and through Internet sites . Macho Sports employees used `` intimidation , threats and violence , '' authorities say .