Feds Crack Down on Popular Internet Poker Site

Wednesday, 21 Sep 2011 09:42 AM

By Greg McDonald

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The Justice Department has accused one of the largest and most popular online poker sites of running a global Ponzi scheme that defrauded players out of millions, according to a report in Forbes magazine.
 
The complaint filed by the U.S. attorney’s office in Manhattan alleges that four directors of Full Tilt Poker, including celebrity poker stars Howard Lederer and Christopher “Jesus” Ferguson, accepted as much $300 million in online bets and paid out the profits to site owners rather than use it as a payout pool for player members of the site.
 
“Full Tilt was not a legitimate poker company, but a global Ponzi scheme,” Manhattan U.S. Attorney Preet Bharara said in a statement Tuesday. “Full Tilt insiders lined their own pockets with funds picked from the pockets of their most loyal customers while blithely lying to both players and the public alike about the safety and security of the money deposited.”
 
According to the Forbes report, the poker site apparently faced a cash crunch following a federal crackdown on online poker sites in 2010 that also included Absolute Poker and another popular site, PokerStars.
 
Despite the crackdown, which was focused on interrupting suspected money laundering efforts by online payment processors, federal authorities said Full Tilt Poker continued to credit “phantom funds” to player-member accounts knowing that the credits could not be covered if cashed in.
 
The federal complaint could set back the gambling industry’s ongoing efforts to ease restrictions on online betting and open up more Internet gaming sites in the United States.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

'Frozen': Most Popular Toy in Holiday Survey Dethrones Barbie

Tuesday, 25 Nov 2014 19:46 PM

Barbie has been the most popular holiday gift for more than a decade, but this year the iconic doll will have to let it  . . .

Nor'easter, Snow Threaten Northeast Travel Ahead of Thanksgiving

Tuesday, 25 Nov 2014 17:50 PM

The Northeast is bracing for a Nor'easter that is expected to snarl holiday travel plans on Wednesday . . .

Michael Hanline Freed After 1980 Murder Conviction Overturned

Tuesday, 25 Nov 2014 15:34 PM

Michael Hanline, who was convicted of murder in 1980, was released on bail Monday after prosecutors said they are no lon . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved