The Full Tilt Poker hearing took place in London 2 days ago. During the first two days, the DOJ amended its complaint adding three new defenants, Howard Lederer (who was found to be the most influential person in poker just half a year ago by BLUFF Magazine), Chris Ferguson and Rafe Furst. The memorandum published by the DOJ summarizes the amendments:
"The Amended Complaint alleges that one of the Poker Companies, Full Tilt Poker, not only engaged in the operation of an unlawful gambling business, bank fraud, wire fraud, and money laundering as alleged in the Complaint, but also defrauded its poker players by misrepresenting to players that funds deposited into their online player accounts were secure and segregated from operating funds, while at the same time using player funds to pay out hundreds of millions of dollars to Full Tilt Poker owners. Full Tilt Poker was able to accomplish this massive fraud, in part, because it illegally conducted business in the United States but maintained its personnel, operations, assets, and accounts principally overseas."
The modified complaint claims that not only did FTP operate illegally in the United States, but also the leadership, more precisely Ray Bitar, Chris Ferguson and Rafe Furst paid themselves, and their fellow leaders approximately $443 million total. The DOJ asks for the amounts of laundered money back from the defendants (approximately $41 million for Bitar, $42 million for Lederer, $25 million for Ferguson, and $12 million for Furst).
Howard Lederer
United States Attorney of Southern District of New York Preet Bharara called Full Tilt Poker a "global Ponzi scheme". He added:
"As a result of our enforcement actions this alleged self-dealing scheme came to light. Not only did the firm orchestrate a massive fraud against the U.S. banking system, as previously alleged, Full Tilt also cheated and abused its own players to the tune of hundreds of millions of dollars. As described, Full Tilt insiders lined their own pockets with funds picked from the pockets of their most loyal customers while blithely lying to both players and the public alike about the safety and security of the money deposited with the company."
According to the complaint, FTP owed its players around the world $390.695.788, when they only had $59.579.413 on their bank account. FTP currently owes around $150 million to its U.S. players.
The hearing will likely span through 3 days, we will be reporting as soon as anything new surfaces.
