U.S. Alleges Full Tilt Poker Was Ponzi Scheme

Discussion in 'Wall St. News' started by ChkitOut, Sep 20, 2011.

  1. I don't buy it, the government is basically saying that players that win cannot collect. Thats most likely bullshit. I've never heard of any complaints about withdrawals. Granted most players lose but thats another story.'


    The U.S. Justice Department on Tuesday accused poker celebrities Howard Lederer and Christopher Ferguson among other executives of a major poker website of defrauding poker players out of more than $300 million.

    The U.S. Attorney in the Southern District of New York filed a motion Tuesday to amend an earlier civil complaint to allege that Mr. Ferguson, Mr. Lederer and two other directors for the website, Full Tilt Poker, operated what the Justice Department says was a Ponzi scheme that allowed the company to pay out $444 million to themselves and other owners, which included other famous poker players.

    In the motion to amend the complaint, the government alleges Full Tilt executives misrepresented to the website's players that the money the company was supposed to be holding in player accounts was safely held when it was actually being used for other purposes, including payments to owners.

    The distributions to the owners continued even as funds to pay out creditors—the poker players—dwindled because government investigators had made it increasingly impossible to move player money into company-affiliated bank accounts, the government says.

    "Full Tilt was not a legitimate poker company, but a global Ponzi scheme," said Preet Bharara, U.S. Attorney for the Southern District, in a statement.
  2. oddsman


  3. Samsara


    Looks like something is clouding either your judgment or your reading comprehension (no offense).

    Federal prosecutors know their job and the law quite well.
  4. Pekelo


    Stealing costumers' accounts doesn't make it a Ponzi. After all the players did get enjoyment out of playing and the website didn't depend on the ever growing number of users. So not a Ponzi, just plain old theft...
  5. Daal


    This resembles more a undercapitalized bank rather than a Ponzi
  6. Wasn't Full Tilt a Bright Trading venture? Or did they just promote it because of Jesus?

    In any case, I hope that Don doesn't get pulled into this...

  7. this is sarcasm i hope.

    The defenition of Ponzi doesn't fit here. Not even a little bit.
  8. Without knowing any of the details, sounds trumped up. Gov't has been after these outfits for awhile.
  9. bud exactly, the anti free market, big government, nanny state republicans outlawed such things although the wto found it illegal to outlaw internet gambling. Time for a real third party based on capitalism in the USA.
    #10     Sep 21, 2011