Howard Lederer's latest legal maneuver users New York "game of skill" ruling to try to get him off the hook (plus feds want his $10.5 million house!)

[Dan Druff]

http://www.jdsupra.com/legalnews/def...ence-re-60315/

[Defense Request for Status Conference in USA v. PokerStars (Lederer, Ferguson, Furst) SDNY civil forfeiture proceedings:]

We represent claimant and defendant Howard Lederer in connection with the referenced case. Mr. Lederer is a former two time winner of the World Series of Poker and a former Director of a Company called Tiltware, effectively the former owner of the on-line poker web site known as Full Tilt Poker. As Your Honor is aware, the assets of Tiltware were recently forfeited to the government and then sold to PokerStars, generating substantial assets earmarked for the repayment of customers of Full Tilt Poker.

The purpose of this letter is to bring to Your Honor’s attention the recent opinion of the Honorable Jack B. Weinstein, Senior Judge of the United States District Court for the Eastern District of New York in United States v. DiCristina. For Your Honor’s convenience, a copy of Judge Weinstein’s August 21, 2012 120 page Memorandum and Order is enclosed. In that opinion, Judge Weinstein holds, after extensive hearings and exhaustive reasoning, that poker does not constitute “illegal gambling” for purposes of 18 U.S.C. §1955 (IGBA). The opinion has significant implications for this case, pending before Your Honor, and in light of it, we write respectfully to suggest that the Court hold a status conference in the near future so that the parties may discuss, and the Court may consider, how best to manage this litigation in light of DiCristina.

The core of the government’s allegations in this case is that on-line real money poker violates IGBA. That is the allegation in the First Cause of Action. If this Court agrees with Judge Weinstein, or if the Second Circuit affirms him in DiCristina, then much of the government’s case here, and many of the seizures which have already been authorized, will no longer have a legal basis. At present, numerous motions to dismiss the Government’s first amended complaint have been filed, and the government has the option of filing an amended complaint on or before September 10, 2012. How the government approaches a potential amended complaint, and how the defendants approach moving for its dismissal, are both matters which can be more efficiently handled if the parties have an opportunity to make the Court aware of their plans and views in light of DiCristina. For example, the Court may wish to stay this case pending the resolution of any appeal in DiCristina. Alternatively, the Court may wish to refer the parties to a Magistrate-Judge to explore settlement, in light of DiCristina. Or perhaps the Court may wish to consider on its own the issue of whether poker constitutes “illegal gambling” under IGBA. But the potential significance of the DiCristina opinion for this case cannot sensibly be overlooked.

We would welcome the opportunity to appear before Your Honor at the Court’s earliest convenience to discuss how most sensibly to manage this litigation going forward, in light of the DiCristina opinion.

We have been informed by counsel for Defendants/Claimants Christopher Ferguson and Rafael Furst that they will join in this letter and the request for a status conference.

Thank you for considering the views expressed in this letter.

Respectfully submitted,

Elliot R. Peters

This is a joke.

Lederer's defense claims that poker is now a game of skill, and the charges should be dismissed.

This ignores the fact that he was laundering money and violating the UIGEA, as well as stealing money from the players on his site.

I hope this doesn't work.

[Deal]

Preet has responded. Cliffs: That don't mean shit.

http://www.scribd.com/doc/104425092/...kerStars-et-al

[ftpjesus]

In addition to that. The DOJ filed an amended complaint in attempt to seize the assets, mostly of corporate entities, but also specifically seeks to seize the assets of Chris Fergeuson, Rafe Furst and Howard Lederer that were obtained by their ill gotten gains from their mismanagement of FTP. Anybody who wants to fish through the entire complaint be my guest.

http://docs.justia.com/cases/federal...64/377900/264/

[BeerAndPoker]

Another article regarding assets of the big guys at FTP.

http://www.gambling911.com/gambling-...er-091112.html

DOJ Demands $42 Million From Full Tilt Poker Ring Leader Howard Lederer

The Department of Justice filed an amended civil complaint against four Full Tilt Poker executives including Howard Lederer, seeking more than $100 million total. Lederer is being told to fork over approximately $42 million.

The US Government is seeking the following:

The government is seeking the following judgments:

Raymond Bitar – $40.8 million

Howard Lederer – $42.5 million

Christopher Ferguson – $42 million
Rafael Furst – $11.7 million

In its amended complaint filed on Monday, the DOJ contends that almost $444m was distributed to the 23 owners of Full Tilt Poker while it allegedly defrauded customers.

The DOJ cites a violation of the Travel Act as reason for seizing assets.

“There is probable cause to believe that the Defendant Properties constitute, or are traceable to, property used in illegal gambling businesses.”

- Ace King, Gambling911.com

[Dan Druff]

Thanks to DRK Star for posting this link:

http://www.cardplayer.com/poker-news...-vegas-mansion

Feds Want Lederer's $10.5 Million Las Vegas Mansion
Government Releases Details Of Where Player Money Went
by Brian Pempus | Published: Sep 12, 2012


On Tuesday, nearly a year after the U.S. government accused poker player Howard Lederer of helping orchestrate Full Tilt Poker’s fraud, prosecutors have released details of where the player money went.

Lederer is on the hook for about $42.5 million worth of assets that the feds say are “traceable” to illegal activities in running Full Tilt. The penalty could cost him his $10.5 million Las Vegas, Nevada home that he built with Ponzi scheme money, according to an amended civil complainant. Altogether, he owns seven properties.

The document states that between about December 2006 and August 2011, Lederer had deposited millions into a “consulting” account, transferring monies along the way into his bank account at Wells Fargo.

Lederer, a two-time World Series of Poker bracelet winner, was involved with what the Department of Justice says was a fraud totaling about $443 million. Right now, only CEO Ray Bitar is facing possible jail time. If convicted of a slew of financial crimes, Bitar could get life in prison. The government also released information on some of Bitar’s assets that it wants forfeited, including the California home where he’s currently being monitored electronically while awaiting trial.

Also facing the loss of assets, but no jail time, are Chris “Jesus” Ferguson ($42 million) and Rafe Furst ($11.7 million). The four individuals have been called “FTP Insiders Defendants” by the DOJ. They served as the company’s board of directors.

The DoJ also claims that Lederer wanted to retire on stolen Full Tilt player money. Lederer is accused of investing fraud money into pension plans and a 401K.

Even after Black Friday, Lederer allegedly continued to spend on luxury items. The DoJ says that in late June 2011, Lederer finished purchase of a 2012 Audi A8-L, worth about $150,000. About $32,000 was processed on his credit card around this time, the government says. It was one of a handful of high-end cars he bought over the years.

Full Tilt’s global operations were shut down by its overseas regulator on June 29, 2011.

In order to retrieve money, the government has cited crimes that it says were perpetrated while engaging in the web poker business, including bank and wire fraud and money laundering.

While the blame has fallen on board members Bitar, Lederer, Ferguson and Furst, the four only represented about 38 percent of Full Tilt ownership. Authorities say that about 19 other individuals, who are not named, received the rest of the hundreds of millions.

The complainant says that another owner was given about $40 million in distributions (about the same as Bitar, Lederer and Ferguson), as well as millions in loans.

Full Tilt is no longer in the hands of the men who are accused of destroying it. PokerStars acquired it this summer as part of its own settlement with the feds. PokerStars was booted from U.S. cyberspace as well, but unlike Full Tilt, wasn’t accused of fraud.

[DaGreek23]

Hope that the DOJ seizes his mansion and many other of Howard's assets. Amazing how he still made luxury purchases after Black Friday. I figured that he would've layed low during this investigation.

[JimmyG_415]

"Bitar could get life in prison"

Wow, what kind of time is he really looking at? Life???

Has anyone filled out any paperwork or anything for the FTP refund?
FTP customer service just says we can't help you.
I'm assuming it is not just going to show up in my bank account like w/Poker Stars,
I emailed the DOJ about which form to fill out, but they didn't write back.

Thanks to DRK Star for posting this link:

http://www.cardplayer.com/poker-news...-vegas-mansion

Feds Want Lederer's $10.5 Million Las Vegas Mansion
Government Releases Details Of Where Player Money Went
by Brian Pempus | Published: Sep 12, 2012


On Tuesday, nearly a year after the U.S. government accused poker player Howard Lederer of helping orchestrate Full Tilt Poker’s fraud, prosecutors have released details of where the player money went.

Lederer is on the hook for about $42.5 million worth of assets that the feds say are “traceable” to illegal activities in running Full Tilt. The penalty could cost him his $10.5 million Las Vegas, Nevada home that he built with Ponzi scheme money, according to an amended civil complainant. Altogether, he owns seven properties.

The document states that between about December 2006 and August 2011, Lederer had deposited millions into a “consulting” account, transferring monies along the way into his bank account at Wells Fargo.

Lederer, a two-time World Series of Poker bracelet winner, was involved with what the Department of Justice says was a fraud totaling about $443 million. Right now, only CEO Ray Bitar is facing possible jail time. If convicted of a slew of financial crimes, Bitar could get life in prison. The government also released information on some of Bitar’s assets that it wants forfeited, including the California home where he’s currently being monitored electronically while awaiting trial.

Also facing the loss of assets, but no jail time, are Chris “Jesus” Ferguson ($42 million) and Rafe Furst ($11.7 million). The four individuals have been called “FTP Insiders Defendants” by the DOJ. They served as the company’s board of directors.

The DoJ also claims that Lederer wanted to retire on stolen Full Tilt player money. Lederer is accused of investing fraud money into pension plans and a 401K.

Even after Black Friday, Lederer allegedly continued to spend on luxury items. The DoJ says that in late June 2011, Lederer finished purchase of a 2012 Audi A8-L, worth about $150,000. About $32,000 was processed on his credit card around this time, the government says. It was one of a handful of high-end cars he bought over the years.

Full Tilt’s global operations were shut down by its overseas regulator on June 29, 2011.

In order to retrieve money, the government has cited crimes that it says were perpetrated while engaging in the web poker business, including bank and wire fraud and money laundering.

While the blame has fallen on board members Bitar, Lederer, Ferguson and Furst, the four only represented about 38 percent of Full Tilt ownership. Authorities say that about 19 other individuals, who are not named, received the rest of the hundreds of millions.

The complainant says that another owner was given about $40 million in distributions (about the same as Bitar, Lederer and Ferguson), as well as millions in loans.

Full Tilt is no longer in the hands of the men who are accused of destroying it. PokerStars acquired it this summer as part of its own settlement with the feds. PokerStars was booted from U.S. cyberspace as well, but unlike Full Tilt, wasn’t accused of fraud.