Full Tilt Poker Responds to New Fed Charges

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Full Tilt

The lawyer representing the online poker brand Full Tilt has made a statement in defense of new allegations that the poker company was only a cover for a $400 million Ponzi scheme.

Attorney Jeff Ifrah had this to say, “Banks fail all the time for not having sufficient funds to cover customer deposits but yet no one refers to such bank failures as Ponzi schemes. There was no Ponzi scheme at Full Tilt Poker, players were not investors in the company, they were never promised any type of high return on their deposits, these players just wanted to play poker and Full Tilt provided such a source.”

However, it has been found that in 2010 Full Tilt Poker was unable to meet the demands of the withdrawals that were being requested by its players. Then the company was shutdown in 2011 by the Federal Government in the US along with PokerStars, who has either totally paid back all their customers or are in the process of paying back.

This newest charge brought on by U.S. Attorney Preet Bharara that Full Tilt was not a legitimate poker company but just a cover for a world wide Ponzi scheme has started a major controversy between what is considered legal and illegal acts made by an online gaming establishment. Because Full Tilt and hundreds of other online gaming sites promise to keep players accounts secure, and that their money is available for withdrawal at anytime.

It would seem to me that any site not able to do either of these two requirements that they offer is in fact operating illegally or at the very least unprofessionally. Full Tilt Poker was considered one of the best in the online poker industry, but these latest accusations, if found true, would take all credibility away from the site as being professionally run and not to be trusted by players ever again.

The three individuals that have been charged with lining their own pockets with player’s monies will have to answer to these charges in the coming days. The civil complaint that has been levied against each person makes sure that if these men received any type of distribution at the time when the company was not able to pay its own players, then they will need to defend whether those payments should or should not be subject to seizure as the new amendment in the civil complaint now alleges.

Full Tilt Pokers Attorney stated in an ABC News story that even if the Federal Government in the US proves their case and such distributions should be forfeited, it still does not confirm or prove that a worldwide Ponzi scheme was taking place. He went on to say in the interview that, “The inflammatory remarks made by the New York Prosecutor in this case has nothing to do with the allegations in the amended civil complaint and the reasons and timing for these statements are most unfortunate.” Full Tilt Poker’s Attorney Ifrah also said that he believes Full Tilt may have mismanaged their company and may have made poor decisions”.

By Patricia C. Senior Editor casinoplayersreport.com
Rick Norris is the originating founder of Casino Scam Report (https://www.casinoscamreport.com) which has now been rebranded to Casino Players Report. For over 15 years he has helped players avoid online casino scams. In the process, he has helped recover hundreds of thousands of dollars for players.

3 COMMENTS

  1. I believe the DOJ has done the players a huge favor in going with the ponzi angle. I also believe that Full Tilt’s Lawyers, Howard Lederer, & Chris Ferguson were caught off guard by this bold and aggressive move. They certainly would rather be found incompetent than fraudulent. This in my opinion now opens the door to more successful civil litigation. Class action lawsuits like (1) in the U.S. and (2) in Canada will be the way to go. We don’t have a complete balance sheet picture here but 440 million paid to shareholders, players owed 390 million world wide, Full Tilts bank account at 60 million throw in 43 million maybe for processer payment fraud. How can Full Tilt justify the unfathomable payments to shareholders. In regards to the high rate of return that was never promised or stated, the players themselves create their own high rate of return based on their bankroll (investment). How many times do you here the term ROI (return on investment bantered around by professional poker players on camera and in the books they publish. The professional players base their game stakes on their bankroll size , skill of opponent and hours played. They thus determine how much ROI they will make. It looks like Full Tilt was to aggressive in paying money to its shareholders and dipping into the players funds which should have been protected. They also gave the illusion that the players money was safe. They also kept taking in new money when they knew they would be insolvent with a run on the bank of 6million. Full Tilts mistake was crediting approx 130 million to players accounts when they had no way of debiting the accounts. Full Tilt was relying on the new deposits to pay the older withdrawels. I can see where the DOJ has connected the dots to make the ponzi claim. In regards to just going after 3 of the 19 shareholders, I think its just a ploy to get some of the smaller shareholders to sweat it. Hopefully a few will crack under pressure and come forward to tell what they know or don’t know truthfully. Anyways I think it was a brilliant move by the DOJ which gives the players a better chance at getting some of their money back through litigation, gives the goverment a stronger barganing chip in the regulation of online gambling. In the end the lawyers will be the big winners as usual. This is going to be going on for years and years. And to those of you who think if DOJ had left them alone you would have better chance of getting your money back, get real! Your money was gone along time ago. Also to those of you who said online gambling was rigged and this is vindication for you….. Get stuffed because they did not have to rig the game and make you lose. They just took your money and paid it to the Shareholders (themselves) anyways. Check my site out at howtoplayonlinepokerforbeginners.blogspot.com

    Horrible Hank

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