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FBI shuts down 3 major poker sites - owners indicted

Discussion in 'GENERAL DISCUSSION' started by PSP, Apr 16, 2011.

  1. PSP

    PSP Ruler of Western Civilization's Geeky Nerds

    http://sports.espn.go.com/espn/poker/news/story?id=6362238&campaign=rss&source=ESPNHeadlines The poker world was shaken Friday as the owners of the three largest online poker sites -- PokerStars, Full Tilt Poker and Absolute Poker -- were charged with bank fraud, illegal gambling offenses and money laundering.The Manhattan U.S. Attorney announced the indictments of those involved with the online poker sites as well as those who were responsible for the financial transactions. The 11 defendants are Isai Scheinberg and Paul Tate (PokerStars), Raymond Bitar and Nelson Burtnick (Full Tilt Poker), Scott Tom and Brent Beckley (Absolute Poker) and Ryan Lang, Ira Rubin, Bradley Franzen, Chad Elie and John Campos (involved with payment processors).Manhattan U.S. Attorney Preet Bharara said in the indictment: 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 in illegal gambling profits.The companies are all based overseas. The indictment sought $3 billion in money laundering penalties and forfeiture from the defendants.The charges are conspiracy to violate Unlawful Internet Gambling Enforcement Act (UIGEA), violation of UIGEA, operation of illegal gambling business, conspiracy to commit bank fraud and wire fraud, and money laundering conspiracy . Maximum penalties from these charges range from five years in prison and a $250,000 fine to 30 years in prison and a $1,000,000 fine (or twice the gross gain or loss). These defendants, knowing full well that their business with U.S. customers and U.S. banks was illegal, tried to stack the deck, said Janice Fedarcyk, FBI assistant director-in-charge. They lied to banks about the true nature of their business. Then, some of the defendants found banks willing to flout the law for a fee. The defendants bet the house that they could continue their scheme, and they lost. The complaint also alleged that these companies used fraudulent methods to trick financial institutions into receiving payments. [The sites] 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. This could have much deeper ramifications for the entire online gaming industry for US players. The bank fraud and money laundering charges refer to the use of credit card and wallet companies. No word yet on what will happen to money in player accounts at those 3 poker sites, but it's safe to assume that the funds are gonzo - and it might just be a matter of time before the eWallet businesses are locked down too.
    Last edited by a moderator: Oct 23, 2014
  2. Mben

    Mben No Deposit Forum Admin Staff Member

    This is not good.Thanks for posting it, PSP.
  3. omeg

    omeg NEW MEMBER

    Hmmmmmm.....(shaking my head)This is not such good news.  Always a bad day for us when we get news like this.You just sit and think about how far this may go.  What is the trickle down effect going to be, and how long before it happens.Yes, thanks for posting PSP.                                                                                            Pam
  4. PSP

    PSP Ruler of Western Civilization's Geeky Nerds

    Look what you get if you go to fulltiltpoker.com[​IMG]
    Last edited by a moderator: Oct 23, 2014
  5. cat034

    cat034 KITTY CAT 034

    i just found out rivals not taking any new us players sad sad day[​IMG]
    Last edited by a moderator: Oct 23, 2014
  6. Mben

    Mben No Deposit Forum Admin Staff Member

    Only the white label Rival casinos (which are quite a few) are not accepting new USA players. And it may just be temporary but I don't know that for sure.
  7. krystalkitty

    krystalkitty Greedy Gambler

    Will be interesting to see how this pans out!
  8. Mben

    Mben No Deposit Forum Admin Staff Member

    And this is how it all went down ....... Read <a href="http://www.businessinsider.com/boy-genius-online-poker-scandal-2011-4" >here</a>. [​IMG]
    Last edited by a moderator: Oct 26, 2014
  9. PSP

    PSP Ruler of Western Civilization's Geeky Nerds

    My sister just tried to sign on to eWalletXpress - just for kicks. it looks like they were one of the payment processors taken over.Oh well - another $1.06 down the drain [​IMG]
    Last edited by a moderator: Oct 23, 2014
  10. Mben

    Mben No Deposit Forum Admin Staff Member

    Last edited by a moderator: Oct 23, 2014
  11. Mben

    Mben No Deposit Forum Admin Staff Member

    Last edited by a moderator: Oct 26, 2014
  12. PSP

    PSP Ruler of Western Civilization's Geeky Nerds

     Sort of - they were still operating for non-USA clients and they were still officially open. Now when you sign on, you get a text screen saying that the feds seized all of their assets, so if you want to get your money out, you are SOL[​IMG] 
    Last edited by a moderator: Oct 26, 2014
  13. PSP

    PSP Ruler of Western Civilization's Geeky Nerds

    The burning message to be learned from this is - IF you are a USA player and IF you have ANY money in ANY of the online casino/poker place/bingo/sportsbook establishments, you would be well served to take your money and run before the US government does for you [​IMG]
    Last edited by a moderator: Oct 23, 2014
  14. PSP

    PSP Ruler of Western Civilization's Geeky Nerds

    BTW, the next thing that the feds are going after are the facilitators - aka website moderators of sites that promote illegal gambling  [​IMG]       OK, just kidding [​IMG]
    Last edited by a moderator: Oct 23, 2014

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