Posted on 04/05/2010 9:45:58 PM PDT by SubGeniusX
A federal grand jury in Manhattan is investigating one of the largest internet poker sites serving US gamblers and could bring indictments against some of the world's best known professional players, according to people familiar with the case and a subpoena issued to a witness this week.
The probe is aimed at Full Tilt Poker and individuals including Chris Ferguson and Howard Lederer, champion gamblers who are among those accused of controlling the company in a Los Angeles civil lawsuit filed last year. Online gambling is illegal in the US and according to the subpoena the investigation is examining whether gambling and money-laundering laws have been broken.
FBI agents or prosecutors have spoken to at least two people involved in disputes with Full Tilt, paying special attention to the possibility of money-laundering violations, those familiar with the inquiry say. Money-laundering charges might be attractive to the government as they would compel co-operation from authorities even in countries where gambling is legal.
Full Tilt's web pages say it is registered in Alderney, in the UK's Channel Islands, and regulated there.
The Manhattan US attorney declined to comment, as did justice department officials in Washington. Eric Jackson, a Los Angeles civil attorney representing Mr Lederer, Mr Ferguson and a software company with ties to Full Tilt, said his clients had not been informed of the grand jury inquiry.
"We are not going to comment about a speculative grand jury investigation that we are not aware of," Mr Jackson said.
Both Mr Lederer and Mr Ferguson filed a motion to dismiss the civil case but have not addressed the substance of the allegations at this stage.
Criminal charges, especially against the celebrity Americans known for televised tournament play, would mark an escalation in the US government's stuttering moves against internet gambling.
But it would fit the federal law enforcement strategy by trying to make an example out of prominent targets, according to Nelson Rose, an author of books on gambling law and adviser to some companies in the industry. "They are waging this war of intimidation," Mr Rose said. "There are not a lot of good statutes, so they go after high-profile targets and try to intimidate everybody."
The justice department maintains online poker violates the decades-old Wire Act, and it gained strength with the 2006 Unlawful Internet Gambling Enforcement Act. But not all judges agree on the former, and Mr Rose said he did not know of any criminal charges brought under the 2006 law, which has been criticised for poor wording.
While various bills are circulating in Congress that would at least permit the states to authorise and regulate online poker, federal agents have continued to take shots at leading figures under money-laundering and other laws.
Even though London-traded PartyGaming pulled out of the US market after the 2006 bill was passed, it paid $105m (€77m, £70m) last April to avoid prosecution. Last year a Canadian payment processor traded on Nasdaq forfeited $19m for handling gambling transactions before the 2006 law.
Many of the lobbyists that pushed to outlaw Internet Gambling were working for the brick-and-mortar gaming industry. Others were advocates for the government, they didn’t like what they couldn’t tax.
ping
Liquor in the front.
Poker in the rear...
I didn’t even know about the existence of “professional poker players” in the same sense it would apply to, say, golfers. Do they get sponsors rather than gambling their own money?
If there are really professional high rollers like this, it would be no obstacle for them to physically go to an offshore casino.
To get started, you use your own money. Once you get good, then the sponsors line up. Sponsors want their "employees" to advertise, and will line up professional poker players for most of the televised poker tournaments out there. Sponsorship may include flying the professional to the tournament, paying the entrance fee and paying for the initial stake, plus room and some food.
Not a lot, but better than going to a tournament on your own nickel.
Full Tilt is my favorite poker site. I play on it at least several times a week. I guess Obama does not like that he can’t tax all of that money. What a bunch of ingrates! Gambling away your money rather than letting me have it.
Poker is a game of skill, not just chance. I’d think that after all this noise, the investigation will quietly go away.
That being so, there’s something about live poker that can’t be duplicated over a computer screen.
while it’s easy to throw darts at Obama for this one lets not forget that the UIGEA was tacked onto a Port Security Act by: Jim Leach, Jon Kyl, and Bill Frist....
Oddly, our best friend in this fight is Barney Frank in the senate.
Lobbying we do have Al D’Amato.
see my post 12
I do very well playing Texas Hold ‘em on the computer. At Vegas, not so much but I have done very well at the Blackjack tables. Good enough that I have gotten comped room upgrades, fight and show tickets, even loaded gift cards. All so I would stay and give the casino a chance to win their money back. I usually wind up blowing that money and coming back home just a few hundred bucks short.
Gambling and numbers rackets are now monopolies of the states.
“Liquor in the front.
Poker in the rear...”
That’s Awesome!
Oohh... Phil... the best poker player in the world (not!!)
A while back on Poker After Dark he pulled a Royal. But he’s not very good at betting, hell, I could have got the pot bigger than that!
They might have a hard time snagging Ferguson. Dudes got a PHD in mathematics and logic. As long as he might have a winning hand, he won’t fold....
its just a sham...an openly assinine made up law to protect the other gamling mobsters..
infact, the tournements can be won by nobodies that don't follow the "rules" of betting.....all it takes is one aggressive player and he can beat the "professionals" who do everything on the odds, and not emotion....
Snitch?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.