FTP allegedly a Ponzi Scheme
The poker world is once again in upheaval following the announcement made by U.S. Attorney Preet Bharara on Tuesday that the original complaint made by prosecutors on Black Friday was being amended. At a time where everyone is closely following up on the news of the hearing of Full Tilt Poker and the Alderney Gaming Control Commission (AGCC) which is being played in London, it is the Manhattan U.S. Attorney’s Office which is making the biggest impression.
As regards the amendment to the original complaint, it basically purports that FTP and its board members which include Ray Bitar, Howard Lederer, Chris Ferguson and Rafe Furst did nothing less than defraud players as Full Tilt Poker was far from being a legitimate poker company. As per U.S. Attorney Bharara “Full Tilt was not a legitimate poker company, but a global Ponzi scheme. 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.”
Still according to the complaint, for about four years, between April 2007 and April 2011, the four board members appropriated themselves players’ money for a sum approximating $443,860,529.89. An excerpt from a press release following the amended complaint states “”Bitar received approximately $41 million, Lederer received approximately $42 million, and Furst received approximately $11.7 million. Ferguson was allocated approximately $87,486,182.87 in distributions, and received at least $25 million, with the remaining balance characterized as “owed” to him. Much of the money that was distributed was transferred by the board members and owners to accounts in Switzerland and other overseas locations.”
Considering that it is asserted that as of March 21st 2011, Full Tilt Poker still owes over $300 million to players out of which $150 million to U.S. players, this latest information is sure to have a devastating effect on the online poker world.
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Tags: Full Tilt Poker, online poker