Tag: DOJ

Absolute Poker has reached an agreement with the US DOJ

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St. John’s, Antigua and Barbuda (May 10, 2011) — Absolute Poker, including the UB (formerly Ultimate Bet) brand, hereafter “Absolute Poker”, issued the following statement today in relation to civil and criminal matters filed in federal court in Manhattan and made public on April 15, 2011:

Absolute Poker has reached an agreement with the United States Attorney’s office for the Southern District of New York (“SDNY”).  Under the agreement, the US Attorney’s Office has agreed to provide all necessary assurances that third parties may work with Absolute Poker to facilitate the return of funds, currently held by third party processors, to players located in the US. This provision is an important step to returning US player funds.

The Company has also notified the SDNY that it has closed its US-facing operations, and it has agreed to the cessation of real money poker play in the US.  As such, Absolute Poker has not requested the return of its worldwide domain names, www.AbsolutePoker.com, www.UltimateBet.com and www.UB.com, and today’s agreement does not provide for their return. The agreement also provides for the appointment of Monitor, approved by the US Attorney’s Office, to assess the Company’s compliance with the terms of the agreement.

Absolute Poker’s top priority has always been, and remains, the refund of account balances to its U.S. players.  Unfortunately, the Company still faces several legal issues which must be navigated before funds can be paid out to US players. The Company’s US attorneys, Blank Rome LLP, continue to work diligently to resolve these issues, which is a necessary further step to facilitate the return of funds to players.  Player funds, therefore, will not become immediately available for withdrawal as a result of today’s agreement with the DOJ.

A Company spokesperson said: “Today’s signing of the agreement with the DOJ is an important step towards the safe and efficient return of funds to our US players.  We can now move as expeditiously as possible to collect player monies from third party processors as a prelude to establishing proper mechanisms for the return of funds to our US players.  As previously announced, we have already taken specific actions to exit the US market by closing our US-facing operations.  Blank Rome LLP will continue to engage in discussions with the SDNY in order to complete the necessary agreements for the final transfer of frozen fund balances to our US players.  This remains our highest priority.  We will continue to update our players and the poker community, as we move forward to resolve outstanding issues.”

PokerStars processing US Withdrawals

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From statements just released by PokerStars, it appears that they will start immediately processing US withdrawal requests. “Returning US players’ funds is a top priority for PokerStars and the company can now start the process of returning money to its former US customers.”  Holdem Poker Chat cautions that the sheer volume of requests may slow the process and players should probably expect a lengthier process than they are accustomed to.  I am sure this is great news for all with substantial portions of their bankrolls on PokerStars.

Click Here for Poker Sites that are Still Accepting Players from the US

PokerStars gives a little more info in their comments regarding the recent developments.  Right up front they state their innocence and desire for their day in court:

“The company categorically denies the allegations brought by the US Department of Justice on 15th April 2011 and is taking all steps necessary to robustly defend itself, and the two named individuals. Meanwhile, the company has stopped offering real money poker services in the United States.”

They continue by stating that player funds are always kept separate from operating funds.

“All PokerStars player deposits are completely safe. The Isle of Man’s strict licensing laws (similar to other jurisdictions where PokerStars holds licenses) require all funds to be held in accounts that are segregated from company assets. PokerStars has always complied with this requirement and continues to do so. This money is readily available to meet withdrawal demands, indeed the company continues to comply with withdrawal requests from players based outside the US as normal. Outside the U.S., PokerStars continues to operate business as usual.”

Good news for everyone.  However, remember that because your government went after a reliable, stand up company like PokerStars, players now no longer get to do business with a company with integrity and class.

Answers to Pokerstars Questions

UPDATE: Shortly after making this announcement Pokerstars put a stop on all withdrawals. Those who managed to process a withdrawal later had the funds returned to their accounts along with an email stating that Pokerstars was still working on the logistics of cashouts to US players and that players would be notified when they were ready.

 

 

Full Tilt Poker Statement on Withdrawals

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Full Tilt Poker released a statement in reaction to their agreement with the Justice Department.  It mostly says that they are pleased that they can give players their money back but the DoJ won’t give them the money that was seized.  That money represented a significant portion of player funds, and they are working to find some system to get money to players as their whole structure for payouts has been destroyed.  The bottom line for players is you still must wait.  Also, any pressure on DoJ in the form of comments on their Facebook page or to local law makers should be continued.  The negative press and anger from consumers is the only reason that we can see for the swift press release from Justice.  Continued pressure is the best way for players to facilitate the return of their funds.

Click Here for a List of Poker Sites that Accept US Players

Full Tilt Poker Statement:

Full Tilt Poker™ is pleased to announce that it has reached an agreement with the United States Attorney’s Office for the Southern District of New York to regain the use of its worldwide domain name, www.fulltiltpoker.com.

Although players in the United States will not be permitted to engage in real-money play, the agreement expressly allows for real-money play outside of the United States.

In addition, the agreement represents an important first step towards returning funds to U.S. players because it allows Full Tilt Poker to utilize its domain to facilitate the withdrawal of player funds. But, unfortunately, there remain significant practical and legal impediments to returning funds to players in the immediate future. As a result of the recent enforcement action, there exists no authorized U.S. payment channel through which to make refunds; Full Tilt Poker has no accounting of the millions of dollars of player funds that were seized by the government; and the government has not agreed to permit any of the seized player funds to be returned to the players.

Finally, there are numerous legal and jurisdictional issues that must be considered before poker winnings can be paid out to players throughout the United States. While Full Tilt Poker continues to believe that online poker is not illegal under federal law or in 49 states, the indictment and civil forfeiture action filed last Friday require Full Tilt Poker to proceed with caution in this area.

Notwithstanding these issues, Full Tilt Poker is ready to work diligently with the United States Attorney’s Office in the Southern District of New York to try and resolve these issues and to get players their money back as soon as possible.

 

Poker Players to be allowed Withdrawals

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In what can only be the result of all the bad press the DoJ has gotten over their ignoring real crime while persecuting poker players, today they announced an agreement with PokerStars and Full Tilt Poker to facilitate the return of funds to US poker players.  The long-winded press release is reprinted in its entirety below, but one of the main points it makes is “The agreements allow for PokerStars and Full Tilt Poker to use the pokerstars.com and fulltiltpoker.com domain names to facilitate the withdrawal of U.S. players’ funds held in account with the companies.” I think players should see action this swift as a victory of public opinion and some of the pressure the US Attorneys office of Southern New York has gotten from the public for attacking innocent poker players.

Reaction from Full Tilt Poker and PokerStars will be posted as soon as Holdem Poker Chat gets the news.  As of right now, withdrawals are not yet allowed, but I assume the ability needs to be coded into the software still.

Click Here for a List of Poker Sites that Accept US Players

Full Press Release:

UNITED STATES ENTERS DOMAIN-NAME USE AGREEMENTSWITH TWO ONLINE POKER COMPANIES
As Part of Agreements, Use of Domain Names Pokerstars.com andFulltiltpoker.com Will Be Restored to Facilitate Return of U.S.Player Funds
PREET BHARARA, the United States Attorney for theSouthern District of New York, announced today that the UnitedStates entered into domain-name use agreements with PokerStars and Full Tilt Poker, two of three online poker companies named as defendants in an April 15 civil money laundering and forfeiture Complaint (the “Civil Complaint”), alleging bank fraud, wirefraud, money laundering, and illegal gambling offenses. The Complaint, a related Indictment, and a related Restraining Order issued against multiple bank accounts utilized by the companies and their payment processors do not prohibit the companies from refunding players’ money. Nevertheless, this agreement will facilitate the return of money so that players can register their refund requests directly with Pokerstars and Full Tilt Poker.
Manhattan U.S. Attorney PREET BHARARA said: “On April15th, this Office and the FBI took specific legal action against11 individuals who allegedly engaged not merely in the operationof illegal gambling businesses, but in massive wire fraud, bankfraud, and money laundering, despite repeated warnings and clear notice that their conduct was illegal in the United States. No individual player accounts were ever frozen or restrained, and each implicated poker company has at all times been free to reimburse any player’s deposited funds. In fact, this Office expects the companies to return the money that U.S. players entrusted to them, and we will work with the poker companies to facilitate the return of funds to players, as today’s agreementswith PokerStars and Full Tilt Poker demonstrate.”
Under the terms of the agreements with PokerStars andFull Tilt Poker, the companies agreed that they would not allow for, facilitate, or provide the ability for players located in the United States to engage in playing online poker for “real
money” or any other thing of value. The agreements allow for PokerStars and Full Tilt Poker to use the pokerstars.com and fulltiltpoker.com domain names to facilitate the withdrawal of U.S. players’ funds held in account with the companies. The deposit of funds by U.S. players is expressly prohibited. In addition, the agreements do not prohibit, and, in fact, expressly allow for, PokerStars and Full Tilt Poker to provide for, and facilitate, players outside of the United States to engage in playing online poker for real money. The agreements also require the appointment of an independent Monitor to verify PokerStars’and Full Tilt Poker’s compliance with the agreements. The Government stands to enter the same agreement with Absolute Poker if it so chooses.
An Indictment was unsealed in Manhattan federal courton April 15, 2011 charging eleven defendants, including the founders of the three largest Internet poker companies doing business in the United States – PokerStars, Full Tilt Poker, and Absolute Poker (the “Poker Companies”) – with conspiracy to commit bank and wire fraud, money laundering and illegal gambling offenses. The United States also filed a Civil Complaint against the Poker Companies, their assets, and the assets of several payment processors for the Poker Companies. In addition, a restraining order was issued against multiple bank accounts utilized by the Poker Companies and their payment processors.The Government did not restrain any players’ accounts. Five Internet domain names used by the Poker Companies -pokerstars.com; fulltiltpoker.com;  absolutepoker.com;  ultimatebet.com;   and ub.com – were also seized. As alleged in the Indictment and Civil Complaint, the Poker Companies collectively obtained approximately $3 billion in proceeds as a result of their illegal activities.
Assistant U. S. Attorneys SHARON COHEN LEVIN, MICHAELLOCKARD and JASON COWLEY are in charge of the civil moneylaundering and forfeiture actions, and Assistant U.S. Attorneys ARLO DEVLIN-BROWN and NICOLE FRIEDLANDER are in charge of the criminal case.

Online Poker the Day After

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Yesterday was quite the day for the online poker world with the US Department of Justice seizing the domains of the world’s largest online poker sites. There’s been many reactions and speculation as to what’s happening and what’s going to happen in the coming days. Many are angry that the US continues to go after online poker. This is not the case here; this isn’t about whether online poker is legal or whether or not it’s a game of skill or a game of luck. This is about money laundering and tax evasion that took place through the websites.

After reading the Civil Complaint it became apparent that the US Government had every right to do what they did. Here’s an excerpt that helps to better explain the crime:

“For example, defendants ISAI SCHEINBERG and PAUL TATE of PokerStars, RAYMOND BITAR and NELSON BURTNICK of Full Tilt Poker, and SCOTT TOM and BRENT BECKLEY of Absolute Poker, arranged for the money received from U.S. gamblers to be disguised as payments to hundreds of non-existent online merchants purporting to sell merchandise such as jewelry and golf balls.”

“By late 2009, after U.S. banks and financial institutions detected and shut down multiple fraudulent bank accounts used by the Poker Companies, CHEINBERG and BITAR developed a new processing strategy that would not involve lying to banks. PokerStars, Full Tilt Poker, and their payment processors persuaded the principals of a few small, local banks facing financial difficulties to engage in such processing in return for multi-million dollar investments in the banks. For example, in September 2009, ELIE and others approached defendant JOHN CAMPOS, the Vice Chairman of the Board and part owner of SunFirst Bank, a small, private bank based in Saint George, Utah, about processing Internet poker transactions. While expressing “trepidations,” CAMPOS allegedly agreed to process gambling transactions in return for a $10 million investment in SunFirst by ELIE and an associate, which would give them a more than 30% ownership stake in the bank. CAMPOS also requested and received a $20,000 “bonus” for his assistance. In an e-mail, one of ELIE’s associates boasted that they had “purchased” SunFirst and that they “were looking to purchase” “a grand total of 3 or 4 banks” to process payments.”

They knowingly bought banks or bribed banks in order to circumvent UIGEA. We agree that UIGEA is ambiguous but it is still a law.

Andrew Feldman of ESPN has reported that the US DOJ is trying to shut down the sites globally. We don’t know how this can be done. Full Tilt Poker and Pokerstars operate in a jurisdiction where online poker is legal. They are both licensed in countries like the France and the UK. We suspect the only way this could happen is if the US DOJ has proof of money laundering or tax evasion in those countries and is sharing this information with countries world wide.

At Holdem Poker Chat we’re being optimistic about the whole situation. This is in fact exactly what the Las Vegas casinos wanted. They are now on a level playing field with online poker and can now make a strong case for legalizing and regulating online poker in the USA. In fact we expect this to happen rather quickly now that their competition is out of the way.

Black Friday Recap

Pokerstars, Full Tilt Poker, Absolute Poker and UB we’re named in an indictment by the U.S. Department of Justice and their domains were seized and replaced with a warning page.

PokerStars has suspended real money play for US players. Players can log in but can’t play at the real money tables. The PokerStars website can be accessed by going to pokerstars.eu and player support is available at support@pokerstars.eu.
Steve Wynn has cancelled his partnership with Pokerstars for PokerstarsWynn.com
Pokerstars has already lost 25% of its traffic.
PokerStars dropped some of their guarantees, including Sunday Storm (from 300K to 200K) and Sunday Million (from 1.5M to 1M)

Full Tilt Poker has left the US market until further notice, and is ensuring that the money is safe with them. Players may send inquiries to support@fulltiltpoker.co.uk.
Fertitta (Stations Casinos) has ended their partnership with Full Tilt Poker
Full Tilt Poker will lose 40+% of its traffic.
Full Tilt Poker has Cancelled the Onyx Cup

Sources have told poker news organizations that UB and Absolute Poker will likely stay in the US.
As of this morning April 16, 2011 players could still play real money games on both sites.

We do not at this time think that this will trickle down to other online poker sites that accept US players like those on the Merge and Cake networks. There are many rumors flying around that other sites including sportsbooks will be next but those are just rumors. Again, this is about money laundering and tax evasion. Not about whether poker is legal or not. We’re slowly updating our review pages to reflect the changes. If you’re looking for a new place to play, we suggest you try Lock Poker where we’ve secured a very nice bonus for all new players.

Stay tuned to Holdem Poker Chat for all the latest Online Poker News.