Tuesday, September 20, 2011

Government Alleges Full Tilt Poker was a Ponzi Scheme

According to this article over at the Wall Street Journal:
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.

Specifically, according to the article Preet Bharara, the United States Attorney for the Southern District of New York, issued the following statement:
Full Tilt 'cheated and abused its own players to the tune of hundreds of millions of dollars' and '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 with the company.' 
My earlier coverage of the Full Tilt action is here.

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