Federal prosecutors and the U.S. Attorney Preet Bharara allege that Full Tilt Poker insiders reaped hundreds of millions of dollars between 2007 and 2011 in a massive, global Ponzi scheme, the operation is said to have had only $60 million in its bank accounts while owing players $390 million in April 2011.
Full Tilt Poker Site Greeting
Here’s an excerpt from the announcement:
“In addition to its failure to segregate funds and its constant stream of distributions to owners, the proposed Amended Complaint alleges that the company faced a growing shortfall in 2010 related to its inability to collect funds from U.S. players, a fact which it did not disclose to players. Beginning in August 2010, Full Tilt Poker’s payment processing network in the United States was so disrupted that the company often could not withdraw money from U.S. players’ bank accounts in order to fund credits to their online gambling accounts. In order to maintain its false image of financial security, Full Tilt continued to credit player accounts without disclosing its inability to fund those credits. Ultimately, the company credited approximately $130 million to players’ online gambling accounts that it never actually withdrew from their bank accounts. When players gambled with these phantom funds and lost to other players, a massive shortfall developed.”
(If they could only print money like the federal shell game)
The House Committee on Financial Services held a hearing on Internet gambling on December 3, 2009 Chaired by Congressman Barney Frank, a proponent of online gambling, up for consideration were H.R. 2266, Reasonable Prudence in Regulation Act, and H.R. 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. Seven witnesses volunteered their opinions.