Federal Grand Jury Possibly Investigating Full Tilt Poker

[FCP Bob 1,312]

There might be some serious legal issues facing Full Tilt in the future going by reports of a Federal Grand Jury investigating them. My guess is that the issue isn't Wire Act related but things like Money Laundering and Fraud.Here's the link to the original Financial Times article that can't be copied here but it's free to register to read it.http://www.ft.com/cms/s/0/e159faf4-404a-11...144feabdc0.htmlI've copied the Bluff article below.http://news.bluffmagazine.com/federal-gran...lt-poker-10075/

Federal Grand Jury Possibly Investigating Full Tilt Poker Jessica Welman | April 5, 2010 The investigation is rumored to center on Howard Lederer and Chris FergusonIf a recent report in the Financial Times is any indication, online poker room Full Tilt Poker could be in major legal trouble before 2010 is over. According to the article, a federal grand jury in Manhattan is investigating the company and some of the big names affiliated with the site. The Times names both Chris Ferguson and Howard Lederer as potential targets of the investigation. The two are believed to hold a “controlling interest” in Full Tilt Poker and, as US residents, they may be charged with breaking US anti-gambling laws. Though Lederer and Ferguson both reside in the US, Full Tilt is registered in Alderney, which is part of the UK’s Channel Islands.In addition to investigating potential violations of gaming laws within the States, the inquiry is also looking into accusations of money laundering by the company. The Times elaborated on the nature of the investigation:.

[nutzbuster 7]

this cant be good...

[TrueAce13 18]

we're f*cked

fyp

[Fade2241 0]

are they going to do anything to stars as well?

[aucu 3]

“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.”

This is the revenge of Cyaclona.

[nutzbuster 7]

This is the revenge of Cyaclona.

lolAnd so much for the thought that the Obama administration was going to be more sympathetic towards online poker...

[aucu 3]

are they going to do anything to stars as well?

They will try something but there is no real exposure in the US like FTP where Howard and Jesus might want to become scarce.To me the real question is if the feds will ever go down the food chain and go after the support, sponsored pros and regular players or just keep trying to cut off the flow of $s when there is no fat cat to fry?

[dna4ever 2]

And so much for the thought that the Obama administration was going to be more sympathetic towards online poker...

don't confuse online gambling with potential offshore money laundering.

[FCP Bob 1,312]

are they going to do anything to stars as well?

One distinct difference between Stars and most of the other sites is that Stars has never committed credit card fraud by mis-coding transactions to be something other than online gaming.

[vbnautilus 48]

In addition to investigating potential violations of gaming laws within the States, the inquiry is also looking into accusations of money laundering by the company. According to sources, Ferguson is being looked at for serious fashion violations including hairstyle stagnation.

Can't say I'm surprised by this part.

[Balloon guy 158]

This is the revenge of Cyaclona. Isuldur1 Ivey's Ex

[nutzbuster 7]

don't confuse online gambling with potential offshore money laundering.

just one domino in a long chain. They hate online gaming.

The move is seen by many to be in anticipation of the June 1st enforcement deadline of the Unlawful Internet Gambling Enforcement Act (UIGEA). The act had previously been delayed six months, but there appears to be no future delays for the legislation. This move is being seen by many within the online gambling industry as an attempt by the Justice Department to make an example out of one of the biggest sites currently serving US customers once the UIGEA goes into effect.

[Whatever 1]

One distinct difference between Stars and most of the other sites is that Stars has never committed credit card fraud by mis-coding transactions to be something other than online gaming.

This.I can see them going after FT for stuff that doesn't really have much to do with online poker.I would love to see the US try to prove in court that online poker is gambling and should be outlawed. I seriously doubt it happens anytime soon.I wonder what this potential case might do to Pokerstar's player base.

[jmbreslin 0]

So...gonna be time to cash out of Tilt soon?

[trystero 0]

So...gonna be time to cash out of Tilt soon?

I'd wait on it as long as possible. When Party pulled from the US market, its customers as I recall didn't have any trouble withdrawing their funds. The problem was that many of them had used Neteller. I doubt that FTP would be all that different.

[MaxStPolish 4]

well luckily for me i recently pissed away my FTP bankroll!

[phlegm 6]

I'd wait on it as long as possible. When Party pulled from the US market, its customers as I recall didn't have any trouble withdrawing their funds. The problem was that many of them had used Neteller. I doubt that FTP would be all that different.

In other words YES.

[tbrick412 0]

when it rains it pours, tho not sure if this story is accurate yet..kentucky suing FTP among others

[Groaty 0]

well luckily for me i recently pissed away my FTP bankroll!

mine went bubye the other day

[herly33 1]

There might be some serious legal issues facing Full Tilt in the future going by reports of a Federal Grand Jury investigating them. My guess is that the issue isn't Wire Act related but things like Money Laundering and Fraud.Here's the link to the original Financial Times article that can't be copied here but it's free to register to read it.http://www.ft.com/cms/s/0/e159faf4-404a-11...144feabdc0.htmlI've copied the Bluff article below.http://news.bluffmagazine.com/federal-gran...lt-poker-10075/

"One distinct difference between Stars and most of the other sites is that Stars has never committed credit card fraud by mis-coding transactions to be something other than online gaming." -FCP BOBThis may be true Bob, but you dont mention anything about Stars not being involved in money laundering and that's where they are fkd.

[DonkSlayer 1]

"One distinct difference between Stars and most of the other sites is that Stars has never committed credit card fraud by mis-coding transactions to be something other than online gaming." -FCP BOBThis may be true Bob, but you dont mention anything about Stars not being involved in money laundering and that's where they are fkd.

I mean if they have controls to prevent it and they aren't knowledgable to it, are they still liable?

[Shark527 0]

I wonder what this potential case might do to Pokerstar's player base.

The players who play exclusively at FT would have nowhere else to go besides stars.This possible future huge uptick in players would mean bigger tournies and anything else.If FT does go down, guaranteed Stars would be eventually next, or at least tried.

[TwstdWrstr 10]

I would like to personally thank the feds for giving me yet another reason to never play on FTP.

[grocery_mony 8]

Odds are those guys got pads in the Cayman islands and tens of millions offshore ready to go if the heat gets turned up. But if it ever gets legalized they are instant legitimate billionares so I can see why they would want to stick around.

[FCP Bob 1,312]

Pretty good interview on espn with the editor of Casino City Times on this issue and some other legal ones.http://espn.go.com/video/clip?id=5067790Here's an article from Casino City Times that lays out the legal issue as well.http://danigo.casinocitytimes.com/article/...ral-probe-58175

Full Tilt subject of federal probe6 April 2010By Vin Narayanan and Dan IgoFull Tilt, the world's second largest poker site, is being investigated by a federal grand jury in Manhattan on money laundering charges, according to a report Monday in the Financial Times. Howard Lederer and Chris "Jesus" Ferguson, two players closely associated with Full Tilt Poker, are also being investigated, according to the report. Both Lederer and Ferguson were named as having an ownership stake in Full Tilt in a civil suit filed last year. The Financial Times says money-laundering charges could be attractive for the government because "they would compel cooperation from authorities even in countries where gambling is legal." In a conversation with Casino City, Buffalo State Business Law Professor Joe Kelly said that successfully prosecuting money laundering charges in these types of cases can be difficult. "In the past, the government has been unsuccessful prosecuting under the Illegal Gambling Business Act (IGBA), which is why they always use the Wire Act," Kelly said. "But if there's no sports betting, they'll likely have to use IGBA." "And under IGBA, there must be a violation of state law before (federal prosecution) comes into play," Kelly added. "So the question is 'Is poker in violation of the New York State law?'" The answer to that question isn't straightforward. Prior to 1965, the New York test for whether something was gambling was chance had to be the predominant factor. In 1965, New York amended its gambling laws so chance only had to be a material element. But according to an analysis by Bennett Liebman, a professor at Albany Law School, New York courts have still been using a dominating element test since 1965, so it could be difficult to prove online poker is illegal in New York. Eric Jackson, an attorney representing Lederer, Ferguson and a software company with ties to Full Tilt, told the Financial Times that his clients were not aware of any grand jury investigation and did not have any comment. The U.S. Attorney in New York refused comment, according to the Financial Times. Full Tilt has had its fair share of legal battles in the U.S. in the past year. Poker professional Clonie Gowen filed a $40 million lawsuit against the card room and a number of well-known Full Tilt pros in November 2008, claiming a breach of contract. That lawsuit was dismissed in February. Authorities in Maryland have also attempted to seize funds destined for online poker players. They said Full Tilt, PokerStars, Bodog and Absolute Poker have "engaged in betting or wagering in violation of Maryland law."