FTP License Truths & Rumours

Evening update & editors comment

Full Tilt Poker have released a statement blaming the Alderney Gambling Control Commission (AGCC) for not being able to repay their players, because they have revoked their licenses and not made it as easy to sell the company.

On behalf of the thousands of players and the $300 million or more owed to them, how can they blame the AGCC? It was not the AGCC that, shall we say, “lost the money”.

No it was FTP and their owners that took the money out of the accounts, the AGCC has done the right thing, it is a shame FTP did not. Please FTP stop blaming everyone else and admit what you did, to your customers and also to the reputation of the online gambling industry.

Shame on you FTP. We welcome your full apology here, to your customers.

Read the full statement on the Poker Strategy website

RIP FULL TILT POKER – The iGaming Post told you FIRST last wednesday 22nd September and we knew what was happening. How we broke the story last week

The Alderney Gambling Control Commission (AGCC)

The outcome and official version is now out and one of the worlds largest online poker sites has had its license revoked by the AGCC on the 29th September 2011. see how The Post broke the story first

A very sad day for all the 550 staff working for FTP and all those players hoping to have their money returned.

In the end no-one could be found to invest in a company that had not just shot itself in the foot but cut off its leg. Accusations of stealing from Directors, their lack of communication to players, and who would invest in the company that owed at least $300 million to players?

Stay with the iGaming Post for more on the FTP fall out, coming soon.

The iGaming Post News Sponsor

All About Full Tilt Poker:

Full Tilt Poker was an online poker card room launched in June 2004 with the involvement of a team of poker professionals, Howard Lederer, Phil Ivey, Andy Bloch, Mike Matusow, Jennifer Harman and Chris Ferguson.

Full Tilt Poker is registered in Alderney, regulated by the Alderney Gambling Control Commission under the name Filco Limited; and France, regulated by ARJEL under the name Rekop Limited.

On September 20, 2011 the U.S. Justice Department accused Lederer, Ferguson and other of the firm’s executives of a fraud involving a Ponzi scheme of over $300 million.

On April 15, 2011, Full Tilt Poker was one of several online poker operators to have its .com domain seized by United States law-enforcement authorities as part of a series of indictments of the sites’ owners and employees. The Full Tilt Poker homepage was replaced with a notice of the seizure until the domain was reinstated on April 20.

On June 29, 2011 Alderney Gambling Control Commission suspended Full Tilt Poker licenses. This decision follows a special investigation prompted by the indictments unsealed by US Attorney General’s Office in the Southern District of New York on 15th April 2011, during which grounds were found to indicate that these licensees and their business associates were operating contrary to Alderney legislation. Subsequently, all game play was suspended on the site. On July 4, France likewise suspended Full Tilt’s .fr license.

The Legal fall out:

Unlawful Internet Gambling Enforcement ActOn September 29, 2006, the U.S. Congress passed a harbor security measure, the SAFE Port Act, which included a last-minute amendment known as the Unlawful Internet Gambling Enforcement Act (UIGEA). While the law does not outlaw online gambling, it does make it illegal for financial institutions, such as banks and credit card companies, to transfer funds to online gambling sites.

In response to passage of the UIGEA, PartyGaming Plc, owner of Party Poker, left the US market, creating a vacuum largely filled by PokerStars and Full Tilt Poker.

Law Suits:

Clonie GowenIn late 2008, Full Tilt was sued in Nevada by Clonie Gowen, prominent poker professional and former Full Tilt endorser. She claimed that during Full Tilt’s formative year of 2004, she was offered a 1% ownership in the company in exchange for her promotional efforts. The suit was dismissed by a trial court, but later partly reinstated on appeal.

James Hicks On April 29, 2009, James B. Hicks filed a civil complaint against Tiltware, LLC (d/b/a FullTiltPoker.com), TiltProof, Inc., and Chris Ferguson generally alleging unfair and unlawful business practices including illegal Internet gaming and violations of the UIGEA. Hicks is seeking injunctive relief to prevent Full Tilt from operating its website, soliciting players, or funding or accepting payments for illegal gambling in California. No monetary damages are being sought save reasonable costs and attorneys’ fees.

The Plaintiff, Hicks, is a Los Angeles lawyer and a partner in the law firm representing him in his case against Full Tilt.

Jason NewittOn September 11, 2009, Full Tilt was sued civilly in Nevada by Jason Newitt in the case of Jason Newitt v. Tiltware; Full Tilt Poker; Pocket Kings Ltd.; Pocket Kings Consulting Ltd.; Raymond Bitar; Howard Lederer. Mr. Newitt alleges that he was unfairly fired and that his distribution payments were unfairly ceased.

Lary KennedyOn October 1, 2009, Lary Kennedy and Greg Omotoy filed suit against Full Tilt Poker, Tiltware and several individual members of Team Full Tilt alleging fraud, libel, slander, false advertising, and racketeering. Kennedy and Omotoy filed suit following unsuccessful attempts to have Full Tilt refund $80,000 which it had seized from Kennedy’s and Omotoy’s accounts asserting a violation of Full Tilt’s Terms of Service for using “bots”. On October 17, 2009, Full Tilt responded to Kennedy’s lawsuit by claiming the suit was baseless and frivolous and stating that it “has never knowingly allowed ‘bots’ to play on its site.

After the case was removed to the United States District Court for the Central District of California, on April, 26, 2010, Judge Margaret Morrow dismissed the case with leave stating the Kennedy had failed to “detail many portions of her case regarding state violations and, in particular, there could be no claim under the RICO Act. However, as the case was dismissed with leave, Kennedy may re-file the complaint in federal court if she is able to correct the deficiencies in her original complaint.

On April 5, 2010, the Financial Times reported that a federal grand jury in Manhattan is investigating Full Tilt Poker and individuals associated with the company, including Howard Lederer and Chris Ferguson, for violations of gambling and money-laundering laws. Although neither the Manhattan United States Attorney nor officials with the United States Department of Justice would comment on the matter, it was reported that such an investigation “would fit the federal law enforcement strategy by trying to make an example out of prominent targets”. The Department of Justice maintains that online poker violates the Interstate Wire Act of 1961 (Federal Wire Act).

On April 15, 2011, the Department of Justice unsealed an indictment, dated March 10, 2011, against two of the owners / employees (Raymond Bitar and Nelson Burtnick) of Full Tilt Poker, along with some of the owners / employees of PokerStars and Absolute Poker. The defendants were charged with fraud, money laundering, and violation of United States federal gambling laws, and certain domain names for the sites were seized by the FBI.

A companion civil case, U.S. v. PokerStars, et al. (11 Civ. 2564)[34] was filed on April 14, 2011, and includes Full Tilt and its related entities as defendants. The U.S. government is seeking the forfeiture of approximately $3 billion USD in defendants’ assets as a remedy.

Phil Ivey On May 31, 2011, Phil Ivey announced that he has filed suit against Tiltware, the software and marketing provider for Full Tilt Poker, as a result of Full Tilt’s failure to reimburse online account holders following the Department of Justice indictment unsealed on April 15, 2011. Ivey further noted that he will not compete in the 2011 World Series of Poker since it would not be fair for him to compete when others cannot as a result of Full Tilt’s failure to reimburse account holders. Ivey voluntarily withdrew the suit on June 30.

The “Ponzi” Scheme remark

Justice Department accusation On September 20, 2011, The U.S. Justice Department accused Full Tilt of defrauding poker players out of more than $300 million. The U.S. Attorney in the Southern District of New York filed a motion to amend an earlier civil complaint to allege that Chris Ferguson, Howard Lederer and two other directors for Full Tilt 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.

September 29th 2011
Full Tilt has their license Revoked by the Alderney Gambling Control Commission (AGCC)