Posted on 09/20/2011 10:58:36 AM PDT by Clint N. Suhks
Howard Lederer, Chris Ferguson, Rafe Furst, Ray Bitar Allegedly Defrauded Players out of $440 Million.
Forbes is reporting that on Tuesday morning the U.S. Justice Department accused Full Tilt Poker’s board members Howard Lederer, Chris Ferguson, and Rafe Furst of working with CEO Ray Bitar to defraud poker players out of more than $440 million over the past four years.
After Tuesday’s amendments to April’s original indictment swept more names from the beleaguered site into the thick of legal trouble, Manhattan’s U.S. Attorney Preet Bharara said in a statement that “Full Tilt was not a legitimate poker company, but a global Ponzi scheme,” while “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.”
The government is also alleging that on March 31 Full Tilt only had about $60 million in the bank while owing about $400 million globally, including $150 million to U.S. customers. The site has publicly blamed various circumstances and scenarios for why it has not returned funds, as the company is allegedly looking for outside investors.
Full Tilt is currently in discussions with the Alderney Gambling Control Commission over its suspended license.
ping
Why didn't Rick Perry warn me about this one too?
...must protect SS from competition! (otherwise it may end up like the USPS)
I guess the owners assumed they could skim the funds of US players and not worry about a lawsuit. Playing was illegal so I'm not sure if these players have any standing to get their money back.
Also, the sites can't be based in the US so how does the DOJ have any jurisdiction?
Holder and Obami can run ponzi schemes, but nobody else. Not even others elsewhere in the world can escape our nazi controllers.
That is not a true statement. Playing was never made illegal. It was illegal for Banks to conduct transactions with the online gaming sites. The justice department has used suits based on the transfer of funds to shut down access to the sites.
Great scam
Well, the feds certainly are world-class experts in global Ponzi schemes...
“Playing online has been illegal in the US for years.”
That is not a true statement. Playing was never made illegal. It was illegal for Banks to conduct transactions with the online gaming sites. The justice department has used suits based on the transfer of funds to shut down access to the sites.
$$$$$$$$$$$$$$$$$$$
Correct. In fact, the UIGEA doesn’t even have the word “poker” in it.
So you’re saying we can’t trust Jesus (Chris Ferguson)?
The answer to WWJD? is “Take the Money and Run”?
Full Tilt Poker...so is THAT what they’re calling Social Security these days?
I always thought there was something a little shady about Howard Lederer.
Full Tilt deserved to die, unless they placed customer money in a third party entity, say Fidelity who invested in their cash reserves. Then Full Tilt would subject themselves to audit.
Sure, there would be a “rake” to cover operating expenses; but the operation needed to be run more like a financial institution (i.e. a good one) than a casino.
If they did so, they may still be around.
If Full Tilt fraudulently induced U.S. citizens to send them money from an account in the U.S. to an overseas account, and then stole that money, the U.S. has jurisdiction to prosecute Full Tilt for wire fraud because an act in furtherance of the fraud occurred within the U.S.
You pays your money and you takes your chances...
ML/NJ
“If Full Tilt fraudulently induced U.S. citizens to send them money from an account in the U.S. to an overseas account, and then stole that money, the U.S. has jurisdiction to prosecute Full Tilt for wire fraud because an act in furtherance of the fraud occurred within the U.S.”
I don’t get it. Isn’t it an assumption of risk on the part of the players? Since you can’t enforce gambling contracts given that they’re illegal, where’s the fraudulent inducement? Isn’t it a sort of gentleman’s agreement as to whether they’ll be remitted or welched on? What expectation was there, aside from Full Tilt’s wanting to stay in business, that they’d be able to claim their winnings?
Sucker! Buy lottery tickets. That's my retirement plan.
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