Borgata Finds "Significant Number of Counterfeit Chips," Cancels Event 1

[Dan Druff]

I agree that this is a horrible resolution.

The proper resolution would have been:

1) People who busted and played in the same room as Lusardi: Refund $560 entry fee

2) People who busted and did NOT play in the same room as Lusardi: Give them nothing, as they were unaffected by the cheating

3) Remaining 27: Continue the tournament at a later date, with the prize money that was originally to be paid for each spot. Alternately (though a less fair solution), do some kind of calculation based upon chip stacks and pay out that way.

Basically, finish off the tournament, but the Borgata should refund the $560 to busted players (who were in the same room as Lusardi) out of their own pockets. This should be done because it was the Borgata's own security lapse that allowed this to occur.

Instead, the money is being taken away from the winners and being given to the losers. Not fair at all, since there were only two parties at fault here (Lusardi and the Borgata), and this is punishing the players who had no control over this matter.

Here is the Pokernews writeup of the situation: http://www.pokernews.com/news/2014/0...chip-18030.htm

[BeerAndPoker]

I agree that this is a horrible resolution.

3) Remaining 27: Continue the tournament at a later date, with the prize money that was originally to be paid for each spot. Alternately (though a less fair solution), do some kind of calculation based upon chip stacks and pay out that way.

Basically, finish off the tournament, but the Borgata should refund the $560 to busted players (who were in the same room as Lusardi) out of their own pockets. This should be done because it was the Borgata's own security lapse that allowed this to occur.

In an ideal world sure that would be the best plan but you can't pause a tournament for months with a bunch of people that traveled in specifically to play in this tournament series and then resume it later.

Some of these individuals have other life commitments whether it be traveling elsewhere to play poker, a regular job,etc. , so even if you gave them travel and hotel expenses to comeback to finish it this wouldn't really work out.

[SrslySirius]

Instead, the money is being taken away from the winners and being given to the losers. Not fair at all, since there were only two parties at fault here (Lusardi and the Borgata), and this is punishing the players who had no control over this matter.

Exactly. Very succinct way of putting it.

[Nurabsal]

I pointed out on 2+2 that the NJGDE ordered Borgata to pay out 1.7 mill, whereas Borgata are claiming that they were ordered to pay back 1.4 and they have decided to pay back the rake (making it up to the 1.7) because they thought it was the right thing to do.

If this were true, the NJGDE statement would say 1.4 mill. It doesn't.

Just because Kevmath links to an article with a quote from Borgata, this doesn't mean the Borgata are telling the whole story.

Clearly the NJGDE realized that if refunds were only $500 that would look really bad and therefore ordered Borgata to refund the rake too.

Yet Borgata have tried to take credit for this.

[haleylh]

I finally got around to writing a longer examination of why I think the Borgata / New Jersey DGE ruling is awful. I called it "lazy, mathematically unsound and manifestly unfair. I even threw in some graphs to illustrate the problems.

TLDR warning in advance for anyone that's curious but doesn't like 1,700 words.

On a follow-up note, when I Tweeted about it, I got lots of fave and reTweets but one semi-sorta-attack response by someone named Nancy, who seems to be associated with the Borg in some way. Her Twitter account has a whole lot of Borgata Poker pimping but there's no formal declaration of any relationship.

Anyhow, I wrote that based on all the player postings on various forums and social media and the statements released last week by the Borgata and the DGE, the first player complaints could have come on the evening of Flight 1A. Remember that Lusardi was the overall leader of Flight 1B. Interesting?

Well, in the process of trying to tear down my story, this Nancy person ended up having to admit that Lusardi did indeed play on Day 1A as well, and he was probably eliminated that first day after introducing a few fakes, then bought in again on Day 1B and made his deep run. And, the fact that Lusardi fired two separate bullets on two different days is something that the Borgata has never acknowledged publicly before this, to the best of my knowledge. I could be wrong, but I think I'd have seen it if that had been said.

It's all buried within the context of the DGE and Borg statements, but they don't talk about it directly. Still, if you read between the lines and understand how the refunds were issued, it makes the DGE ruling process look even lazier -- there may not have been any attempt at all to determine who and how many players were exposed to Lusardi's bad chips. That in turn led them to draw an overly cautious blanket timeline beginning at 4:30 on Day 1A, meaning that hundreds of extra players will get the $500+60 refund despite being nowhere near Lusardi's chips. I don't mind the refunds, but it's very bothersome that those funds came out of the remaining players' prize fund with little justification, and the only valid explanation I can find is that it's a concerted effort to minimize the Borgata's longterm legal liability. "Fairness" doesn't seem to have much to do with it.

[haleylh]

Oh, the "Nancy" I mentioned seems to be Nancy Martin, Michael's mom. (Hi, Michael!) She's like a super-reg at the Borgata and is quite a homer for all the various Borgata goings-on.

Now there's rumors afoot that the chip leader, who wasn't named in the 4 thread but would be Allard Broedelet, might have been added in to the ongoing WPT $10K event at the Borg. The twin kickers are that he supposedly was put in an hour -after- registration had closed, and the event allegedly had an overlay, so if its true, the Borg just gave away $10,000 in other players' equity at no real expense to themselves.

Waiting to see if it's true....

[Dan Druff]

Thanks to great customers like Christian Lusardi, Alibaba is now filing for a monster IPO:

http://money.cnn.com/2014/05/06/inve...ipo/index.html

[BUBBLES]

http://t.co/I521xsSrr5

Six Victims of Winter Poker Open Counterfeit Chip Scandal File Lawsuit Against Borgata

May 14, 2014Chad HollowaySHARE:FacebookTwitterGoogle+

Earlier this year, a counterfeit chip scandal rocked the 2014 Borgata Winter Poker Open. In mid-April, New Jersey Division of Gaming Enforcement (DGE) Director David Rebuck released the final order regarding payout distribution to affected players. Now, six of those players, all of who were among the final 27 in the tournament, have filed a lawsuit against the Borgata.

According to the complaint obtained by PokerNews, the six players — Duane Haughton, Michael Sneideman, Cuong Tran, Alvin Vatanavan, Christopher Korres, and Cuong Phung — filed a Civil Action Complaint on Tuesday with the Superior Court of New Jersey through lawyers William H. Pillsbury and Maurice B. VerStandig of Offit Kurman, P.A.

The complaint alleges four counts against the Borgata — Negligence, Breach of Contract, Breach of Implied Contract, and Negligence Per Se — and seeks damages of $33,756.44 for each of the plaintiffs.

“The four counts each represent an independent cause of action against the Borgata, and each is independently meritorious in light of the egregiously inadequate means with which the Borgata operated the Winter Open,” said VerStandig. “However, the damages sought are not cumulative, so at this time we are only seeking the pro rata chop value, plus interest and attorneys’ fees, on behalf of each plaintiff, and we are only asking the court to award this money once, regardless of there being four counts.”

The plaintiffs contend that had the final 27 elected to chop the remaining prize pool in even increments, each would have received a payment equal to $53,079.44, which is $33,756.44 less than the $19,323 they received.


Christian Lusardi compromised the tournament
According to the aforementioned DGE order, Borgata is responsible for distributing a total of $1,721,805 to eligible entrants who participated in the tournament compromised by Christian Lusardi. According to a statement by Borgata, the money would be distributed to 2,143 entrants determined to be affected by the scandal, though the final 27 would only receive $19,323. The winner of the tournament was originally supposed to receive a prize of $372,123.

Additionally, the complaint alleges that the Borgata has already paid off several players among the final 27 in excess of the $19,323 ordered by the DGE.

“Upon information and belief, the Borgata has privately agreed to pay monies over and above the Paid Sum to various members of the Final 27, in exchange for each such recipient executing, inter alia, a confidentiality agreement, and the Borgata has intentionally set out about ensuring the various members of the Final 27 not know how much money has been paid to select colleagues of theirs.”

The complaint alleges the following counts:

Negligence: The complaint alleges that the Borgata owed the players — via their state licensee and fact that they accepted an entry fee — a duty to operate the tournament with proper security and oversight, but breached the duty by “operating portions of the Winter Open in overflow facilities without adequate camera surveillance” and by “not adequately supervising the field of entrants such that it realized the Fake Chips were being introduced into play.” In addition, the complaint states the Borgata had a duty to inventory chips and freeze the tournament immediately after concerns of counterfeit chips were raised with personnel, both of which they failed to do.


“Each of these breaches was such that the Borgata operated the Winter Open in a manner inferior to that in which a reasonably prudent casino would have operated the Winter Open,” the complaint states. “The breaches, individually and cumulatively, caused the Final 27 to incur damages... But for these breaches, the Final 27 would have divided the Remaining Prize Pool, whether by election of the Pro Rata Chop Value or by playing down to a single winner. The Final 27 have been damaged.”

Since a winner cannot be determined, the complaint claims each member of the Final 27 have sustained damages equal the “Pro Rata Chop Value” of $33,756.44.

Breach of Contract: The complaint goes on to claim the Borgata breached a contract with the players for the same reasons listed under negligence.
Breach of Implied Contract: The complaint then covers its bases by claiming a breach of implied contract, meaning if their wasn’t an explicit contract, as listed above, then there existed an implied contract between the Borgata and players.
Negligence Per Se: The complaint states that the Borgata breached a Security Statute by operating portions of the Winter Open in overflow facilities. The statute cited states:

“Each casino licensee shall arrange the facilities of its casino and, if appropriate, its simulcasting facility in such a manner as to promote optimum security for the casino and simulcasting facility operations, and shall comply in all respects with regulations of the division pertaining thereto.”

“This is a somewhat unique matter inasmuch as it is not a class action lawsuit, but the plaintiffs are all similarly situated. Given this reality, William Pillsbury and I would certainly welcome the opportunity to discuss representation with other members of the Final 27 who have not been secretly paid off by the Borgata, and our filing actually anticipates this possibility,” VerStandig told PokerNews. “If any of your readers are members of the Final 27 and are interested in joining this action, they should contact William Pillsbury or myself — our contact information is on Offit Kurman’s website.”

The plaintiffs in the action concluded by demanding a trial by jury.

“In the short term, the next step is for the court to issue a summons and for us to have the Borgata formally served with this complaint,” VerStandig explained. “We anticipate this will happen in the next week or two, and the Borgata will then have to file a responsive pleading. I somehow doubt I am alone in being curious to see whether the Borgata will attempt to justify its actions in this matter, once formally summoned to court to do so.”

PokerNews will have more on this story as it develops.

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[Dan Druff]

I agree with this lawsuit and hope that they win.

Borgata really shit the bed on this one.

[alleyrivo]

It only a matter of time before they find who put these chips into play

[BUBBLES]

Borgata Counterfeiter Christian Lusardi Sentenced to Five Years in Prison

April 07, 2015Chad HollowaySHARE:FacebookTwitterGoogle+
Christian Lusardi
RELATED ARTICLES


Christian Lusardi Prepares to Face Sentencing in Counterfeiting Charges

Top 10 Stories of 2014: #3, Christian Lusardi and the Borgata Counterfeit Chip Scandal

Christian Lusardi Arrested for Counterfeit Chips at Borgata Winter Poker Open
In Jan. 2014, scandal broke out at the Borgata Winter Poker Open $2 Million Guarantee when players discovered counterfeit chips had been introduced into play. The tournament was suspended, ultimately cancelled, and an investigation revealed that 42-year-old Christian Lusardi was the man responsible, a revelation that came courtesy of clogged pipes in his hotel room. Now, more than a year later, he has been sentenced to prison, albeit it on charges relating to his international DVD bootlegging operation.

Senior United States District Judge James C. Fox sentenced Lusardi, now 43, to 60 months in prison and three years of supervised release on March 30. In addition, Lusardi was ordered to pay $1,137,864.01 restitution.

On Sept. 2, 2014, Lusardi pled guilty to two counts of Criminal Information, charging him with Copyright Infringement, in violation of 18 U.S.C. Sections 2319(b)(1)&(2) and 17 U.S.C. Section 506(a)(1)(A), and Trafficking in Counterfeit Labels, in violation of 18 U.S.C. Section 2318.

As PokerNews legal contributor Maurice "Mac" VerStandig explained, Lusardi was previously processed through the United States District Court for the District of New Jersey and sent back to North Carolina to face more serious federal charges.

"Could he have negotiated a dismissal of the state charges in exchange for his federal plea? Absolutely," VerStandig said. "Is it odd that he pled guilty to both counts with which he was charged in federal court? Somewhat. Does this suggest federal and state prosecutors cooperated? Maybe. But is any of this a certainty? Absolutely not."

In regards to the DVD counterfeiting investigation, which was conducted by the Department of Homeland Security and the United States Postal Inspection Service, and subsequently prosecuted by Assistant United States Attorney Susan B. Menzer, the Wilmington, NC USAO office sent out a press release:

"Investigation revealed that several boxes of counterfeit DVDs mailed from China were intercepted by the National Intellectual Property Rights Coordination Center and Customs and Border Protection (CBP). The boxes of counterfeit DVDs were controlled delivered to the identified address. Shortly after the controlled delivery was complete, agents made contact with Lusardi which resulted in the subsequent search of Lusardi’s residence. The search resulted in the discovery of over 35,500 counterfeit DVDs. Investigation revealed that between June 2010 and July 2012, Lusardi was in the business of receiving, manufacturing, and selling counterfeit DVDs in both the United States and Canada. It was determined that Lusardi received over $1.3 million in his PayPal account during this time period."

Even though the presser didn't mention the Borgata counterfeit scandal, poker fans no doubt feel Lusardi is getting his comeuppance as he'll now spend his days in a federal correctional institute.

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[Shizzmoney]

lol counterfeit DVDs. No wonder he cheated; that biz has dried up too (at least in US)

[Sanlmar]

lol counterfeit DVDs. No wonder he cheated; that biz has dried up too (at least in US)

lol POKER. No wonder he cheated; that biz has dried up too (at least in US)

[Forum Wars]

CHRISTIAN LUSARDI was Released a half year ago after about 6 Months Served


Managed to "flush" this one out...don't think anyone in the poker world noticed...Let's keep going with PFA exclusives...

Proving once again that poker crimes get you a little more than a slap on the wrist, Christian Lusardi was paroled back in July 2016 after serving only a little over 6 months for BOTH a 3-year and 5-year sentence that was being served concurrently in the Garden State.

You can search for him here after accepting the conditions https://www20.state.nj.us/DOC_Inmate/inmatefinder?i=I
...but this is what it will show...

[ftpjesus]

CHRISTIAN LUSARDI was Released a half year ago after about 6 Months Served


Managed to "flush" this one out...don't think anyone in the poker world noticed...Let's keep going with PFA exclusives...

Proving once again that poker crimes get you a little more than a slap on the wrist, Christian Lusardi was paroled back in July 2016 after serving only a little over 6 months for BOTH a 3-year and 5-year sentence that was being served concurrently in the Garden State.

You can search for him here after accepting the conditions https://www20.state.nj.us/DOC_Inmate/inmatefinder?i=I
...but this is what it will show...

The key there was NO MANDATORY MINIMUM sentence if you noticed.. They aren't gonna keep some clown locked up for fake poker chips when apparently nothing was officially stolen per se as the courts saw it.. I kinda figured he'd get cut loose. Bet if he'd had a gun in his luggage travelling and got stuck over night (through no fault of his own and had followed TSA and federal regs to declare the locked firearm in his suitcase) though they would've been ready to throw him in jail for 10yrs.

Yes that really happened to a guy.. Airlines fucked up and he got stuck in NJ for the night.. He had to collect his luggage.. When he went to reboard in the morning and as per legal requirements declared his firearm locked in his luggage he was arrested for an unlicensed firearm possession in NJ, despite the fact he was only supposed to be traveling through there on a connection to another part of the and, had travelled legally from a state where he was legally allowed to possess said firearm..
Ulitmately the case was dropped and it took him 2yrs to get his gun back but cost this guy 10days being held in jail on a charge that got dropped because it was usurped by Federal Law regarding interstate travel and firearms transportation..

[Forum Wars]

The key there was NO MANDATORY MINIMUM sentence if you noticed.. They aren't gonna keep some clown locked up for fake poker chips when apparently nothing was officially stolen per se as the courts saw it.. I kinda figured he'd get cut loose. Bet if he'd had a gun in his luggage travelling and got stuck over night (through no fault of his own and had followed TSA and federal regs to declare the locked firearm in his suitcase) though they would've been ready to throw him in jail for 10yrs.

Yes that really happened to a guy.. Airlines fucked up and he got stuck in NJ for the night.. He had to collect his luggage.. When he went to reboard in the morning and as per legal requirements declared his firearm locked in his luggage he was arrested for an unlicensed firearm possession in NJ, despite the fact he was only supposed to be traveling through there on a connection to another part of the and, had travelled legally from a state where he was legally allowed to possess said firearm..
Ulitmately the case was dropped and it took him 2yrs to get his gun back but cost this guy 10days being held in jail on a charge that got dropped because it was usurped by Federal Law regarding interstate travel and firearms transportation..

You're right, they're not going to keep that dude in jail for long. Not surprised he's out, more so that this happened (parole) to chip flusher Lusardi and nobody seemed to notice. As to that airport/gun story: sounds both totally ridiculous and totally normal and more plausible than ever in today's landscape.

[Dan Druff]

This is outrageous, given the amount of damage his actions caused, coupled with the fact that he's a career scammer and already had a recent conviction for DVD counterfeiting on his record before this trial.

NJ legal system = JOKE

[haleylh]

This is outrageous, given the amount of damage his actions caused, coupled with the fact that he's a career scammer and already had a recent conviction for DVD counterfeiting on his record before this trial.

NJ legal system = JOKE

This whole update is wrong. Or, rather, it's technically correct but entirely misleading. Lusardi was indeed "paroled" last July, but he was never released. Instead he was transferred to a federal prison in South Carolina to serve out the remainder of his precedental and concurrent sentence for DVD bootlegging. He's not going anywhere until at least June of 2019, which seems right, because I believe federal sentences require at least 85% time served before consideration for parole.

There's actually quite a bit more to this story, but for one of the few times in my career, there are things here that I don't necessarily want to report.

[Forum Wars]

This is outrageous, given the amount of damage his actions caused, coupled with the fact that he's a career scammer and already had a recent conviction for DVD counterfeiting on his record before this trial.

NJ legal system = JOKE

This whole update is wrong. Or, rather, it's technically correct but entirely misleading. Lusardi was indeed "paroled" last July, but he was never released. Instead he was transferred to a federal prison in South Carolina to serve out the remainder of his precedental and concurrent sentence for DVD bootlegging. He's not going anywhere until at least June of 2019, which seems right, because I believe federal sentences require at least 85% time served before consideration for parole.

Haley, you are quite correct. I see he is still in a federal prison facility in SC. I wondered about him, did a search for prisoners in NJ and saw that he was "released"...so my bad in reporting that he was out and thanks for the update. But it seems that if did not pirate the DVDs, he would actually be out right now, no? Because the DVD pirating is the federal crime, and the chip counterfeiting was a state offence? If that is correct, he's still getting off lightly for the chip counterfeiting/tourney cheating IMHO.

There's actually quite a bit more to this story, but for one of the few times in my career, there are things here that I don't necessarily want to report.

Really?!!! When a story makes a journalist not want to report something, it just makes me very interested in what's up.

[haleylh]

Haley, you are quite correct. I see he is still in a federal prison facility in SC. I wondered about him, did a search for prisoners in NJ and saw that he was "released"...so my bad in reporting that he was out and thanks for the update. But it seems that if did not pirate the DVDs, he would actually be out right now, no? Because the DVD pirating is the federal crime, and the chip counterfeiting was a state offence? If that is correct, he's still getting off lightly for the chip counterfeiting/tourney cheating IMHO.

I doubt it, but I also can't think doing time in a South Carolina federal prison would be a fun thing. There are multiple possible explanations for why he was sent to SC, and it could be as simple as him having family in NC. There are some other things I'm looking into as well.