The Internet Poker Civil Suit: Seeks $3 Billion Forfeiture

By Jeralyn, Section Crime in the News
Posted on Sun Apr 17, 2011 at 05:25:47 PM EST
Tags: online gambling (all tags)

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The Indictment of the 11 internet poker company executives and payment processors is only part of the story. Along with the Indictment, which was returned on March 10 but not unsealed until this Friday, the Government filed a civil lawsuit, available here, seeking forfeiture of $3 billion, as well as the company's domain names and websites.

The Defendant Entities are liable to the Government for a sum of money representing the amount of property, funds, or monetary instruments involved in the money laundering offenses described above, in an amount that is no less than $1.5 billion for the PokerStars Entities; $1 billion for the Full Tilt Poker Entities; and $500 million for the Absolute Poker/Ultimate Bet Entities.

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Some of the forfeiture grounds are rooted in statutes prohibiting "illegal gambling." If poker is not illegal gambling, because of the skill involved, those counts could fail. But what about the other grounds, such as forfeiture based on bank fraud, wire fraud and money laundering?

In sum, there probable cause to believe that the Defendant Properties constitute (a) property used in illegal gambling businesses, in violation of Title 18, United States Code, Section 1955, and the proceeds of illegal gambling businesses; (b) the proceeds of a conspiracy to commit wire fraud and bank fraud, in violation of Title 18, United States Code, Sections 1343, 1344, and 1349; and (c) property involved in a conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956(h). Accordingly, the Defendant Properties are subject to forfeiture to the United States of America pursuant to Title 18, United States Code, Sections 981(a) (1) (A), 981(a) (1) (C),and 1955(d).

and

From at least in or about 2006 up to and including on or about March 2011, in the Southern District of New York and elsewhere Scheinberg, Bitar, Beckley, Burtnick, Tate, Ryan Lang, Bradley Franzen,Ira Rubin, and Elie and others known and unknown unlawfully, willfully and knowingly did combine,conspire,confederate, and agree together and with each other to commit bank fraud, in violation of Title 18 United States Code, Section 1344 and wire fraud, in violation of Title 18 United States Code Section 1343. By reason of the above, the Defendant Properties are subject to forfeiture to the United States of America pursuant to 18 U.