While talks between Full Tilt Poker and the U.S. Department of Justice continue over the site’s actions prior to Black Friday, PocketFives.com has learned that a $900 million class-action lawsuit has been filed in California. The class-action lawsuit against Full Tilt Poker “accuses Full Tilt of fraud, unjust enrichment, ‘a pattern of racketeering,’ ‘brazen money-laundering,’ and more,” according to the Los Angeles Times.This is the fifth lawsuit against Full Tilt Poker since the Alderney Gambling Control Commission, or AGCC, suspended its license in late June. Ultimately, the AGCC revoked Full Tilt’s gambling papers altogether and Groupe Bernard Tapie conditionally acquired the room pending a successful deal with the DOJ. PocketFives.com has learned that negotiations between Full Tilt and the DOJ are ongoing, although no time line for their finalization is known.
The plaintiffs in the newest suit are Lary Kennedy and Greg Omotoy, who name Ray Bitar, Chris Ferguson, Phil Ivey, and Gus Hansen, and Howard Lederer (pictured) among the defendants. If you’ll recall, the DOJ labeled Full Tilt Poker a “global Ponzi scheme” in late September and fingered Ferguson, Lederer, and Rafe Furst as its masterminds. Bank accounts belonging to the trio were promptly ordered frozen. Kennedy is owed $120,000 from Full Tilt, while Omotoy is owed $10.The Times notes that this week’s lawsuit filed in California “alleges that Full Tilt misappropriated funds from player accounts and fed it to the defendants. The site also illegally deducted rake, according to the complaint.” In the comments section of the Times article, one poster grew wary of the seemingly never-ending barrage of negative Full Tilt news, writing, “Really, I just want my $50 deposit back already.”
Earlier this month, Merchant Law Group LLP, a Canadian firm, filed suit against Full Tilt, asserting, "Our class-action issued with the courts today asserts that tens of millions of dollars is owed to Canadian online poker players with real money accounts at Full Tilt Poker. Our firm has already received complaints from more than 150 people who were online poker players. Many of these individuals held thousands of dollars in their account prior to their accounts being frozen in June 2011."
According to the DOJ, Full Tilt Poker paid its executives and sponsored pros over $440 million from 2007 to 2011, all the while owing players nearly $400 million. On Thursday, the AGCC issued a correction to an earlier report stating that the DOJ had seized $331 million from Full Tilt, instead saying, “The underlying evidence in the hearing clearly demonstrated that $331 million was the total of funds unavailable to Full Tilt, of which DOJ seizures formed only a part. The misstatement is thus not of significance in the Commission’s assessment of the matter.”
After revoking Full Tilt’s license, the AGCC washed its hands clean of the Full Tilt Poker fiasco, suggesting that players who were affected “contact their own local police in their country of residence and report the matter to them.”
PocketFives.com was not able to establish on Thursday whether talks between Tapie and Full Tilt are ongoing. The announcement that Tapie had conditionally purchased Full Tilt came one day after its license was revoked.
Throughout the aftermath of Black Friday, many members of the community have questioned the oversight of the AGCC. In an interview with eGamingReview in late September, AGCC Executive Director Andre Wilsenach opined, “I blame it absolutely on Full Tilt. In my view, it’s absolutely right that the Commission has decided to revoke their licenses… If your operator doesn’t tell [you about seized funds], then there’s no way you would know.” Some in the industry have pointed out, consequently, that the AGCC has tended to act reactively instead of proactively.According to Dow Jones Newswires, Full Tilt Poker ranked as the third most visited online gambling website in August, with the industry as a whole seeing 9.7 million visitors, a jump of 13%. Stay tuned to PocketFives.com for the latest Full Tilt Poker news.
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