U.S. DOJ Claims Owners Looted Players and Full Tilt Poker for Millions
In an amended U.S. Department of Justice civil complaint released Tuesday, it is claimed that Full Tilt Poker owners essentially looted the company and its players for the last several years. The lead U.S. Attorney on the case, Preet Bharara, asserted that Full Tilt Poker and its board of directors operated the company “as a massive Ponzi scheme against its own players.” Since April of 2007, over $443 million had been "distributed" to owners.
Bharara added that in their amended filing for forfeiture and civil money laundering complaint that was originally unsealed in April that Full Tilt board members Howard Lederer, Chris Ferguson and Rafael Furst, together with Full Tilt CEO Ray Bitar, defrauded poker players out of some $300 million by not maintaining funds at the company sufficient to repay players.Bahara added “Full Tilt was not a legitimate poker company, but a global Ponzi scheme. 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.”In the new filed complaint, Bitar, Lederer, Ferguson and Furst are added to the original complaint which was filed seeking $3 billion from Full Tilt Poker and an unrelated poker company, PokerStars. The difference from PokerStars was that in 2008 and 2009 Full Tilt sent emails to its players and posted messages on online poker forums assuring players that “unlike some companies in our industry, we completely understand and accept that your account money belongs to you, not Full Tilt Poker.” The reality was that Full Tilt Poker did not have enough funds to repay players. As of March 31, Full Tilt only had $60 million or so in its bank accounts while owing $390 million to players around the world, including $150 million to its U.S. players.The FTP statement adds "Insider Defendants are liable to the Government for a sum of money representing the amount of property, funds, or monetary instruments involved in the money laundering offenses described above, in an amount that is no less than $40,954,781.53 for Bitar; $41,856,010.92 million for Lederer; $25 million for Ferguson; and $11,706,323.96 million for Furst."Further damning evidence was revealed in internal Full Tilt Poker emails that indicated that CEO Ray Bitar was well aware of the dire situation.A June 12, 2011 email showed Bitar expressing his concern that a company announcement regarding lay offs and the Board (including himself) being replaced would be seen as bad news, which would cause a “new run on the bank that could be a huge run, at this point we can’t even take a five million run.”The latest allegations will likely halt any progress or positive resolution as the AGCC considers the licensing status of Full Tilt Poker in London this week. It brings additional worrisome charges of willfull defrauding of players and improper payments to owners who are very visible within the poker community.
Bharara added that in their amended filing for forfeiture and civil money laundering complaint that was originally unsealed in April that Full Tilt board members Howard Lederer, Chris Ferguson and Rafael Furst, together with Full Tilt CEO Ray Bitar, defrauded poker players out of some $300 million by not maintaining funds at the company sufficient to repay players.Bahara added “Full Tilt was not a legitimate poker company, but a global Ponzi scheme. 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.”In the new filed complaint, Bitar, Lederer, Ferguson and Furst are added to the original complaint which was filed seeking $3 billion from Full Tilt Poker and an unrelated poker company, PokerStars. The difference from PokerStars was that in 2008 and 2009 Full Tilt sent emails to its players and posted messages on online poker forums assuring players that “unlike some companies in our industry, we completely understand and accept that your account money belongs to you, not Full Tilt Poker.” The reality was that Full Tilt Poker did not have enough funds to repay players. As of March 31, Full Tilt only had $60 million or so in its bank accounts while owing $390 million to players around the world, including $150 million to its U.S. players.The FTP statement adds "Insider Defendants are liable to the Government for a sum of money representing the amount of property, funds, or monetary instruments involved in the money laundering offenses described above, in an amount that is no less than $40,954,781.53 for Bitar; $41,856,010.92 million for Lederer; $25 million for Ferguson; and $11,706,323.96 million for Furst."Further damning evidence was revealed in internal Full Tilt Poker emails that indicated that CEO Ray Bitar was well aware of the dire situation.A June 12, 2011 email showed Bitar expressing his concern that a company announcement regarding lay offs and the Board (including himself) being replaced would be seen as bad news, which would cause a “new run on the bank that could be a huge run, at this point we can’t even take a five million run.”The latest allegations will likely halt any progress or positive resolution as the AGCC considers the licensing status of Full Tilt Poker in London this week. It brings additional worrisome charges of willfull defrauding of players and improper payments to owners who are very visible within the poker community.
