Home > News > FBI Shuts Down Online Poker Giants • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

FBI Shuts Down Online Poker Giants

FBI Shuts Down Online Poker Giants
Get XBIZ News
Apr 15, 2011 4:00 PM PDT    Text size: 

NEW YORK — Eleven operators of the largest online poker sites — PokerStars, FullTiltPoker, AbsolutePoker —  were indicted on federal charges of bank fraud and money laundering in an indictment unsealed in a Manhattan court.

Federal prosecutors are seeking to immediately shut down the sites and seek recovery of $3 billion from the companies. Already, a federal court has issued an order restraining approximately 76 bank accounts in 14 countries containing the proceeds of the charged offenses.

FullTiltPoker’s website already was down with its home page was supplanted by a display message explaining that “this domain name has been seized by the FBI pursuant to an arrest warrant.”

"These defendants, knowing full well that their businesswith U.S. customers and U.S. banks was illegal, tried to stack the deck," FBI spokeswoman Janice Fedarcyk said. "They lied to banks about the true nature of their business. Then, some of the defendants found banks willing to flout the law for a fee. The defendants bet the house that they could continue their scheme, and they lost."

No adult company or their officials, including those that process online transactions, were named in the indictment.

The FBI says that because U.S. banks and credit card issuers were largely unwilling to process their payments, the poker companies allegedly used fraudulent methods to circumvent federal law and trick institutions into processing payments on their behalf.

"For example, defendants Isai Sheinberg and Paul Tate of PokerStars, Raymond Bitar and Nelson Burtnick of FullTiltPoker and Scott Tom and Brent Beckley of AbsolutePoker, arranged for the money received from U.S. gamblers to be disguised as payments to hundreds of non-existent online merchants purporting to sell merchandise such as jewelry and golf balls," according to the indictment and civil complaint unsealed Friday.

Others charged include Ryan Lang, Bradley Franzen, Ira Rubin, Chad Elie and John Campos.

The defendants face charges ranging from violating the Unlawful Internet Gambling Enforcement Act, operation of illegal gambling business, conspiracy to commit bank and wire fraud and money laundering conspiracy.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

EDUCATIONAL FEATURES

Cam World: Camming and Toys Go Hand in Hand

There is nothing more satisfying than pleasure, especially if it is sexual. The size or the presentation of the stimulus does not matter if the sensations and tension the body receives transform the way... More »

Cam World: Injecting Personality Into Your Room

Since the last issue of Cam World, I’ve made some significant life changes. I’m working from Colombia now. This was a decision that was not entered into lightly, but change gives you a chance... More »

Fraudulent Brazilian Trademark Registrations Running Rampant

Although you might not think often about protecting your trademark rights in Brazil, you need to — even if you don’t yet have a single Brazilian customer. Scammers are constantly looking for... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

EXXXOTICA Denver

Mar 31 - Apr 02
Denver, CO.

Eurowebtainment 2017

May 17 - May 20
Majorca, Spain

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!