More Developments Unfold in Full Tilt Ponzi Scheme Saga

There have been several new developments regarding the ongoing Full Tilt Poker saga.  To review, yesterday Howard Lederer, Chris Ferguson, and Rafe Furst were added to the civil complaint filed by the U.S. Department of Justice against Full Tilt Poker, PokerStars, and UB.  Full Tilt allegedly owes around $390 Million to players worldwide and has around $6 Million left in funds.  In addition, the owners of Full Tilt received over $443.8 Million in payments, most of those payments made from player deposits.

Stick a fork in Full Tilt, they appear to be done.

Among early developments on Wednesday, the Epic Poker League announced the indefinite suspension of both Howard Lederer and Chris Ferguson from the league.  According to the Ethics Committee Chairman Stephen Martin, the following were factors in the suspension:

(1) Although the Amended Complaint constitutes a civil, and not criminal, action and facts are alleged but not yet proven, “the specificity of the allegations and the fact they came from the United States government made this the right course of action in the best interests of the players in the League.”

(2) “The government chose to name Howard Lederer and Chris Ferguson individually in their roles as members of the board of directors Full Tilt.”

(3) The Committee will continue to monitor the legal actions. “If other members are named in the actions, the Committee will consider additional disciplinary action.”

Annie Duke serves as the commissioner of the EPL and is the sister of Howard Lederer.  Annie does not have a vote in the ethics committee.  Also, Andy Bloch chose not to vote on the matter due to his affiliation with Full Tilt.

Developments later in the day centered around the licensing trial currently underway with the Alderney Gambling Control Commission and the company’s quest to secure a new investor.

According to a report posted on PocketFives.com, an anonymous source with Full Tilt has reportedly signed a letter of interest with the company.  Two potential investors backed out of a deal with Full Tilt once the DOJ announced the amended agreement.

Jeff Ifrah, an attorney with Full Tilt revealed on TwoPlusTwo forums that there has indeed been a letter of intent signed with Full Tilt and urged players to write the AGCC to request they suspend the hearing about 30 days to allow the new management structure to take place.

One suspected reason behind Ifrah’s plea to players stems around rumors that the AGCC is rumored to permanently suspend Full Tilt’s license.  Rumors circled the net regarding a suspension on Wednesday, but the AGCC nor Full Tilt has confirmed or denied the rumors.

Also, long time online poker proponent and Massachusetts congressman Barney Frank pledged to return funds donated to his campaign by Full Tilt Poker.  In total, $32,600 has been donated to his campaign by both Full Tilt and the Poker Players Alliance, a company funded by Full Tilt.  He stated that he would like to see the money used to repay player funds, but if that were not possible, he would donate it to charity.

As you can tell from the above, this saga is really begin to heat up and chances are that more developments will break in the next few days.  We will keep you abreast of any new developments.

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