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DOJ Charges Three Major Online Poker Sites with Fraud
- Lance Bradley | April 15, 2011
The U.S. Department of Justice has charged the founders of online poker sites PokerStars, Full Tilt Poker and Absolute Poker with fraud and conspiracy in an idictment unsealed Friday morning.
The indictment includes Isai Scheinberg and Paul Tate from PokerStars, Ray Bitar and Nelson Burtnick from Full Tilt, Scott Tom and Brent Beckley of AbsolutePoker. Also charged were Ryan Lang, John Campos, Bradley Franzen, Ira Rubin and Chad Elie who are believed to be working for payment processors. Campos and Elie were arrested Friday morning in Las Vegas and Utah. The DOJ is working with Interpol to secure the arrest of the other defendants.
A total of five domain names, including UB.com, PokerStars.com, FullTiltPoker.com, have been seized by the DOJ. Restraining orders were also issued for 75 bank accounts used by the poker sites and payment processors.
“As charged, these defendants concocted an elaborate criminal fraud scheme, alternately tricking some U.S. banks and effectively bribing others to assure the continued flow of billions inillegal gambling profits,” said Manhattan U.S. Attorney Preet Bharara. “Moreover, as we allege, in their zeal to circumvent the gambling laws, the defendants also engaged in massive money laundering and bank fraud. Foreign firms that choose to operate in the United States are not free to flout the laws they don’t like simply because they can’t bear to be parted from their profits.”
The indcitment alleges that the poker companies worked with payment processors to fool U.S. banks into processing payments to and from players. All 11 defendants have been charged with Conspiracy to Violate Unlawful Internet Gambling Enforcement Act which has a maximum sentence of five years in prison, a fine of $250,000 or twice the gross amount won or lost and three years supervised release.
The founders of the three poker sites have been charged with Violation of Unlawful Internet Gambling Enforcement Act , which carries a maximum sentence of five years in prison and a fine of $250,000 or twice the gross amount won or lost and three years supervised release, and Operation of Illegal Gambling Business, which also carries a maximum sentence of five years in prison and a fine of $250,000 or twice the gross amount won or lost and three years supervised release plus the forfeiture of proceeds of offense.
The other charges are Conspiracy to Commit Bank Fraud and Wire Fraud and Money Laundering Conspiracy.
The DOJ is seeking $3 billion in penalties from the companies.
PokerStars has since prevented U.S. based players from accessing any cash games or tournaments on their site.
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The law was passed illegally, doesn’t apply to playing poker, and with the momentum towards US based poker site for revenue, is a waste of time and resources.
What will this really accomplish?
I disagree with the law, but it was not Illegally made….it is a law. Now, the crucial part of the law is if poker is a game that is substantially chance or not. Poker players like to say its mostly skill in the long run. THAT is true in my opinion. However, it is only an opinion, an argument….one that must be made in court. However, these things will NEVER go to court because the DOJ is so good at getting guilty pleas and settlements. Unless someone bites the bullet and gets this to the Supreme Court to answer the question “IS poker Illegal Gambling” the DOJ will continue to shut down poker one two or three sites at a time. In the meantime, expect your poker money to go to pay the USA for settlements. Then when it comes time to get your money in a year or so, you will have to file statement with the feds identifying yourself as a poker player….this will lead to MANY audits and awkwardness.
And BTW Eric, it was your precious Republican party or “small-government unless its about personal freedom and choices” that started this mess. You guys had a shot at leading the charge to prevent the law in the first place and you said “it will never happen.”
The Republican Party is the “Right Wing Shariah Law Party”.
The bible thumpers are trying to run everything there in the USA. and succeeding.Its ok to let in a stream of drugs thru your southern border,but god forbid,play some poker and its jail.I can forsee government officials getting eliminated by irate people who only want to sit at home and play some poker after a day at work.
I THOUGHT THE USA STOOD FOR FREEDOM. YOU YANKS HAVE ABOUT AS MUCH FREEDOM AS IRAN.YOUR DEPT OF JUSTICE AND GOVT ATTORNEYS ARE BOTH CORRUPT JOKES.NOW THEY ARE TRYING TO TAKE MONEY FROM HARD WORKING AMERICANS.I FORSEE DEAD OFFICIALS DOWN THERE.
Indictments & arrests:
Bankers Mortgage Fraud Brokers: 0
Poker Folks 12+
It is not illegal to play online poker in Canada. I can not access my Full Tilt account. It seems that the US Govt – Dept of Justice is seizing the poker sites unjustly. The founders are charged but they are not guilty until proven in court that they committed fraud, conspirency, and whatever else.
FUC THE USA THEY WANT TO CONTROL IT ALL >> FROM A SHAMED AMERICAN..
Actually, they cannot be arrested since thier Poker sites are based off-shore from US.
DOJ seeks 3 billion?? if thats not extortion i dont know what is.
Perfect example of a government that is dis functional and out of control. They are so lost.
With the SCOOP tournies 3 weeks away only a few countries won’t be represented. North Korea, Iran, and the USA are among a just handful of countries that are keeping their players on the rail. Unless Congress acts on behalf of their players, ( and the clock is ticking) this springs champions will not include any USA player. Not much freedom to celebrate this July 4th.
they should get the people their money back,first.i had no idea it was against the law to play online poker.now they are going to take forever to get this unruly mess took care of,the doj should not get anything iut of this,taking care of the american people comes first,not their greddy bank accounts.if they keep this bs up and prolong the situation.they are going to have 10 million pissed of people to deal with.and the sht is really going to hit the fan.i think the american people are tired of their parasitic ways,if we were back in the old days they would be tarred and feathered,i suggest you get somebody with some brains to work this out.THIS IS YOUR LAST CHANCE.
They need to get use their brains it’s all about money..Figure out a way to tax the online sites..It’s the only way that real poker players will ever have a chance to get a decent bankroll to really play poker and don’t forget recreational players who want to have a little fun without leaving their homes.. TEA PARTY..POKER PARTY..
The DOJ owes me my F$%#ING money then!!!!
As of today, I will be assessing a 1.5% interest rate (per month) to my frozen balance. I will also be assessing penalties as well as interest on said penalties at the above-stated rate.
Take your time DOJ, this will be the best investment I ever make.
US Gov’t can’t pay its bills, but online poker is definitely a high priority.