New York Paralegal Blog

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Chad Elie, a payment processor who worked with Internet poker companies Pokerstars, Full Tilt Poker, and Absolute Poker (the “poker companies”), was sentenced today by U.S. District Judge Lewis A. Kaplan to five months in prison for his role in a scheme to deceive banks into processing hundreds of millions of dollars in Internet gambling transactions. Elie, who had previously withdrawn all claims to approximately $25 million seized from payment processing accounts linked to him as required by his plea agreement, was further ordered to forfeit $500,000 to the United States. He pled guilty in March 2012 to conspiracy to commit bank fraud and to operate illegal gambling businesses.

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that Nelson Burtnick, who previously served as director of payments for Pokerstars and Full Tilt Poker, pled guilty in Manhattan federal court to conspiracy to commit unlawful Internet gambling, bank fraud, money laundering, and gambling offenses in connection with a scheme to deceive banks into processing hundreds of millions of dollars of Internet gambling transactions. Burtnick, a Canadian citizen and resident of Ireland, pled guilty before U.S. Magistrate Judge Gabriel W. Gorenstein.

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has entered into settlement agreements with PokerStars and Full Tilt Poker—two of three online poker companies sued by the U.S. in a money laundering and forfeiture complaint that was originally filed in April 2012—that were approved today by U.S. District Judge Leonard B. Sand.

Preet Bharara, the United States Attorney for the Southern District of New York, and Janice K. Fedarcyk, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI) announced that Raymond Bitar, the chief executive officer of Full Tilt Poker, was arrested this morning at John F. Kennedy International Airport. Bitar was charged last year with gambling, bank fraud, and money laundering offenses in connection with the operation of Full Tilt Poker. Upon Bitar’s return to the United States today, a superseding indictment was unsealed charging Bitar with defrauding poker customers by lying to them about the security of their funds.

NEW YORK—A motion was filed today amending the forfeiture and civil money laundering complaint in the matter of United States v. PokerStars et. al, announced Preet Bharara, U.S. Attorney for the Southern District of New York. The proposed amended complaint alleges that Full Tilt Poker and its board of directors, including Raymond Bitar, Howard Lederer, Christopher Ferguson, and Rafael Furst,

PREET BHARARA, the United States Attorney for the Southern District of New York, and JANICE FEDARCYK, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an indictment on 4/15/2011, charging 11 defendants, including the founders of the three largest Internet poker companies doing business in the United States—PokerStars, Full Tilt Poker, and Absolute Poker (the “Poker Companies”)—with bank fraud, money laundering, and illegal gambling offenses. The United States also filed a civil money laundering and in rem forfeiture complaint (the “Civil Complaint") against the Poker Companies, their assets, and the assets of several payment processors for the Poker Companies. In addition, restraining orders were issued against more than 75 bank accounts utilized by the Poker Companies and their payment processors, and five Internet domain names used by the Poker Com...