Erick Lindgren Bankruptcy

[cmoney]

I know this is an old story, and maybe I am naive, but I didnt realize how easy it was for professional gamblers to free roll the IRS. It also annoys me since I do quarterly taxes and ship a lot of federal and state taxes. I have to spend all kinds of money to make sure they are done properly. Even then, the IRS can give you shit about them and then at my own expense have to fix the issue.

Lindgren had a 3.6 million dollar debt to the IRS discharged in bankruptcy. It appears this was racked up over a period of 10 years which means he had to be taking in over 10 million in earnings. How does someone that brings in so much money escape the IRS for so long? I know people that make 30 an hour get nasty letters and threatens of liens when they owe 10k.

So what is his penalty for all this? Bankruptcy. This is basically a free roll. Anyone here would take this if given to them. You are given 10 million dollars and have ten years to figure out how to make 3-4 million to pay off the taxes you will owe. During this time, you basically can do whatever you want, eat at the finest restaurants , fly in private plane , etc. If you lose it all, then you have to do is declare bankruptcy.

If what I am saying is true, pretty fucking sweet deal.

[Dan Druff]

He got away with the tax thing because the IRS doesn't follow up on gambling winnings unless forms are submitted to them.

Anything he won in cash games or Full Tilt payments he received would not be on their radar unless a bank reported him.

I actually know some cash players who just don't file taxes at all, and believe it or not, they haven't been bothered yet.

I think that's too big of a risk to take, and would never consider doing it myself. But so far they've gotten away with it.

[JoeD]

Only some tax debts are dischargeable. More importantly, his San Diego BK (first bk) was closed with no bankruptcy discharge. His Las Vegas BK (second bk) has a dismissal of case pending, so again there is no discharge.

[Buck Nasty]

Erik is just smarter than everyone else, dude is the Donald Trump of poker.

[buzzy]

lol excellent thread Erick Lindgren runs pretty good in life it seems

[CrackPipes and Kakfights]

In his case the tax liability probably also is high because he borrowed money and never paid it back. The debt forgiveness creates taxable income. Also interest and penalties are high in these cases and becomes part of his tax debt. So he probably had far less than 10 million dollars of winnings that were reported to the IRS.

[FRANKRIZZO]

guy ran so good on full tilt they gave him additional free 2 or 3 million. Well not really , he asked for a loan and they double paid it you can guess what happened when they asked for it back. que the laughtrack

[JoeD]

Looks like the IRS finally got its hands on Lindgren's 7th place finish in the 2015 Millionaire Maker

http://pokerdb.thehendonmob.com/event.php?a=r&n=287337

[Crowe Diddly]

wonder if this judge was from the same family as the Honorable Kenesaw Mountain Landis.

 

View on scribd here: https://www.scribd.com/doc/352391036/  

[cmoney]

Looks like the IRS finally got its hands on Lindgren's 7th place finish in the 2015 Millionaire Maker

http://pokerdb.thehendonmob.com/event.php?a=r&n=287337

How did that work? He won and they instantly froze the funds at the cage? I mean he is such a degen i dont he put it in his bank account (if he even has one)

[snake_in_the_ass]

Looks like the IRS finally got its hands on Lindgren's 7th place finish in the 2015 Millionaire Maker

http://pokerdb.thehendonmob.com/event.php?a=r&n=287337

How did that work? He won and they instantly froze the funds at the cage? I mean he is such a degen i dont he put it in his bank account (if he even has one)

Probably linked to his SSN. When they punch it in to issue the W2-G form, bells and sirens started ringing from the computer.

[cmoney]

How did that work? He won and they instantly froze the funds at the cage? I mean he is such a degen i dont he put it in his bank account (if he even has one)

Probably linked to his SSN. When they punch it in to issue the W2-G form, bells and sirens started ringing from the computer.

Good point. What an idiot for even playing the tourney in the first place then. How tilting would that be if he had a backer..

If this is true, and someone you are backing owes the IRS a lot of money, you could get fucked. The weird thing is that I never heard of anyone getting their money frozen while trying to cash out at a poker tourney. Have you?

[OSA]

LOL @ a professional poker player with good credit.

[JoeD]

Looks like the IRS finally got its hands on Lindgren's 7th place finish in the 2015 Millionaire Maker

http://pokerdb.thehendonmob.com/event.php?a=r&n=287337

How did that work? He won and they instantly froze the funds at the cage? I mean he is such a degen i dont he put it in his bank account (if he even has one)

Lindgren owes more than $2 million to some entity named CS RMR LLC, which obtained a default judgment against him. When he won the $193,000 for 7th place in the 2015 Millionaire Maker, CS RMR LLC served a Writ of Garnishment on the RIO in an attempt to collect on its judgment - basically a legal demand that the RIO release the $193,000 to CS RMR LLC rather than to Lindgren. To try and get his hands on the funds, Lindgren then immediately filed for Chapter 11 Bankruptcy in the Las Vegas, NV Bk Court (this was his second bk filing, his first was in San Diego and was dismissed) and asked the Bankruptcy Court to order that the RIO release the funds to him so that he could use the funds "reorganize" and repay part of his debts. Both CS RMR LLC and the IRS (owed over $6 million) opposed Lindgren's efforts to have the funds released and the funds were ultimately ordered to be deposited by the Rio into the Court system. Since the IRS has priority over the judgment creditor, two years later, the Bankruptcy Court ruled in favor of the IRS and all of the winnings were released to the IRS. Lindgren's Ch 11 BK was dismissed last week since it's clear (to me at least) that he only filed to try and get his hands on the funds, which was never going to happen.

A very good summary leading up to the 2015 bankruptcy filing by HH (as usual) can be found here:

http://www.flushdraw.net/news/erick-...cy-protection/

Obviously there's little love for Lindgren but how bad must it be to know that your tournament earnings for the rest of your life will go to either the IRS, CS RMR LLC, or Pokerstars.

[footnote: imo, he's gotten some really, really bad bankruptcy advice. Twice.]

[Tellafriend]

How did that work? He won and they instantly froze the funds at the cage? I mean he is such a degen i dont he put it in his bank account (if he even has one)

Lindgren owes more than $2 million to some entity named CS RMR LLC, which obtained a default judgment against him. When he won the $193,000 for 7th place in the 2015 Millionaire Maker, CS RMR LLC served a Writ of Garnishment on the RIO in an attempt to collect on its judgment - basically a legal demand that the RIO release the $193,000 to CS RMR LLC rather than to Lindgren. To try and get his hands on the funds, Lindgren then immediately filed for Chapter 11 Bankruptcy in the Las Vegas, NV Bk Court (this was his second bk filing, his first was in San Diego and was dismissed) and asked the Bankruptcy Court to order that the RIO release the funds to him so that he could use the funds "reorganize" and repay part of his debts. Both CS RMR LLC and the IRS (owed over $6 million) opposed Lindgren's efforts to have the funds released and the funds were ultimately ordered to be deposited by the Rio into the Court system. Since the IRS has priority over the judgment creditor, two years later, the Bankruptcy Court ruled in favor of the IRS and all of the winnings were released to the IRS. Lindgren's Ch 11 BK was dismissed last week since it's clear (to me at least) that he only filed to try and get his hands on the funds, which was never going to happen.

A very good summary leading up to the 2015 bankruptcy filing by HH (as usual) can be found here:

http://www.flushdraw.net/news/erick-...cy-protection/

Obviously there's little love for Lindgren but how bad must it be to know that your tournament earnings for the rest of your life will go to either the IRS, CS RMR LLC, or Pokerstars.

[footnote: imo, he's gotten some really, really bad bankruptcy advice. Twice.]

Yup, but what else is going to do? They will garnish a % of whatever he makes, however he makes it. Which frankly is a good thing. Most of us have to pay our debts, he should too.

[Sheesfaced]

Lindgren owes more than $2 million to some entity named CS RMR LLC, which obtained a default judgment against him. When he won the $193,000 for 7th place in the 2015 Millionaire Maker, CS RMR LLC served a Writ of Garnishment on the RIO in an attempt to collect on its judgment - basically a legal demand that the RIO release the $193,000 to CS RMR LLC rather than to Lindgren. To try and get his hands on the funds, Lindgren then immediately filed for Chapter 11 Bankruptcy in the Las Vegas, NV Bk Court (this was his second bk filing, his first was in San Diego and was dismissed) and asked the Bankruptcy Court to order that the RIO release the funds to him so that he could use the funds "reorganize" and repay part of his debts. Both CS RMR LLC and the IRS (owed over $6 million) opposed Lindgren's efforts to have the funds released and the funds were ultimately ordered to be deposited by the Rio into the Court system. Since the IRS has priority over the judgment creditor, two years later, the Bankruptcy Court ruled in favor of the IRS and all of the winnings were released to the IRS. Lindgren's Ch 11 BK was dismissed last week since it's clear (to me at least) that he only filed to try and get his hands on the funds, which was never going to happen.

A very good summary leading up to the 2015 bankruptcy filing by HH (as usual) can be found here:

http://www.flushdraw.net/news/erick-...cy-protection/

Obviously there's little love for Lindgren but how bad must it be to know that your tournament earnings for the rest of your life will go to either the IRS, CS RMR LLC, or Pokerstars.

[footnote: imo, he's gotten some really, really bad bankruptcy advice. Twice.]

Yup, but what else is going to do? They will garnish a % of whatever he makes, however he makes it. Which frankly is a good thing. Most of us have to pay our debts, he should too.

Play cash games?

[cmoney]

How did that work? He won and they instantly froze the funds at the cage? I mean he is such a degen i dont he put it in his bank account (if he even has one)

Lindgren owes more than $2 million to some entity named CS RMR LLC, which obtained a default judgment against him. When he won the $193,000 for 7th place in the 2015 Millionaire Maker, CS RMR LLC served a Writ of Garnishment on the RIO in an attempt to collect on its judgment - basically a legal demand that the RIO release the $193,000 to CS RMR LLC rather than to Lindgren. To try and get his hands on the funds, Lindgren then immediately filed for Chapter 11 Bankruptcy in the Las Vegas, NV Bk Court (this was his second bk filing, his first was in San Diego and was dismissed) and asked the Bankruptcy Court to order that the RIO release the funds to him so that he could use the funds "reorganize" and repay part of his debts. Both CS RMR LLC and the IRS (owed over $6 million) opposed Lindgren's efforts to have the funds released and the funds were ultimately ordered to be deposited by the Rio into the Court system. Since the IRS has priority over the judgment creditor, two years later, the Bankruptcy Court ruled in favor of the IRS and all of the winnings were released to the IRS. Lindgren's Ch 11 BK was dismissed last week since it's clear (to me at least) that he only filed to try and get his hands on the funds, which was never going to happen.

A very good summary leading up to the 2015 bankruptcy filing by HH (as usual) can be found here:

http://www.flushdraw.net/news/erick-...cy-protection/

Obviously there's little love for Lindgren but how bad must it be to know that your tournament earnings for the rest of your life will go to either the IRS, CS RMR LLC, or Pokerstars.

[footnote: imo, he's gotten some really, really bad bankruptcy advice. Twice.]

Thanks for this. it makes a lot of sense, as I have never heard of a poker player not being able to cash out because of the IRS. This isnt much different than the situation with Jamie Gold except Jamie Gold didnt also have the IRS on his ass.

[cmoney]

Lindgren owes more than $2 million to some entity named CS RMR LLC, which obtained a default judgment against him. When he won the $193,000 for 7th place in the 2015 Millionaire Maker, CS RMR LLC served a Writ of Garnishment on the RIO in an attempt to collect on its judgment - basically a legal demand that the RIO release the $193,000 to CS RMR LLC rather than to Lindgren. To try and get his hands on the funds, Lindgren then immediately filed for Chapter 11 Bankruptcy in the Las Vegas, NV Bk Court (this was his second bk filing, his first was in San Diego and was dismissed) and asked the Bankruptcy Court to order that the RIO release the funds to him so that he could use the funds "reorganize" and repay part of his debts. Both CS RMR LLC and the IRS (owed over $6 million) opposed Lindgren's efforts to have the funds released and the funds were ultimately ordered to be deposited by the Rio into the Court system. Since the IRS has priority over the judgment creditor, two years later, the Bankruptcy Court ruled in favor of the IRS and all of the winnings were released to the IRS. Lindgren's Ch 11 BK was dismissed last week since it's clear (to me at least) that he only filed to try and get his hands on the funds, which was never going to happen.

A very good summary leading up to the 2015 bankruptcy filing by HH (as usual) can be found here:

http://www.flushdraw.net/news/erick-...cy-protection/

Obviously there's little love for Lindgren but how bad must it be to know that your tournament earnings for the rest of your life will go to either the IRS, CS RMR LLC, or Pokerstars.

[footnote: imo, he's gotten some really, really bad bankruptcy advice. Twice.]

Yup, but what else is going to do? They will garnish a % of whatever he makes, however he makes it. Which frankly is a good thing. Most of us have to pay our debts, he should too.

He may have fucked himself with that second BK because it could be seen as fraud which may make it impossible to declare another BK in the future.

He will need to deal in cash or perhaps start a company with another person and have a joint account. I could be wrong but I dont think a business bank account can be seized if multiple parties are on it and only one of the partieshas a judgement against him/her

[BlunderMaker]

So basically Lindgren will never be able to cash in a tournament and touch the winnings at all. Why even bother?

[snake_in_the_ass]

Probably linked to his SSN. When they punch it in to issue the W2-G form, bells and sirens started ringing from the computer.

Good point. What an idiot for even playing the tourney in the first place then. How tilting would that be if he had a backer..

If this is true, and someone you are backing owes the IRS a lot of money, you could get fucked. The weird thing is that I never heard of anyone getting their money frozen while trying to cash out at a poker tourney. Have you?

As an example, look at what they do is Massachusetts:

Will everyone who wins $1,200 or more on a slot machine be reviewed for past-due child support and Massachusetts tax liabilities?

Yes. It is required that all slot machine jackpot winners of $1,200 or more be verified through the DOR directory to check for any past-due liabilities. A valid photo identification (e.g. driver’s license, state issued ID, or passport) will be required for identity. If no intercept is required, the winner will receive the entire amount.

http://www.mass.gov/dor/individuals/...intercept.html