Federal authorities busted — PokerStars, Full Tilt Poker and Absolute Poker

Federal authorities busted — PokerStars, Full Tilt Poker and Absolute Poker — with charges
of bank fraud and illegal gambling. 

New York prosecutors have issued restraining orders against 76 bank accounts in 14 countries
that they say these companies used to launder billions of dollars in illegal gambling funds.

Five Internet domains associated with the sites have been seized.

Prosecutors argue they've issued restraining orders against 75 bank accounts, interrupting
the flow of billions of dollars.

The indictment includes 11 individuals from the three Internet gambling sites, which makes
it a crime for gambling businesses to knowingly accept most forms of payment in connection
with the participation of another person in unlawful Internet gambling
Two of the 11 charged have been arrested, and law enforcement agents expect at least one of
the men to turn himself in. Eight others currently reside outside of the United States, and
have not yet been brought into custody.

Those charged include: Isai Scheinberg and Paul Tate of PokerStars; Raymond Bitar and Nelson
Burtnick of Full Tilt Poker; Scott Tom and Brent Beckley of Absolute Poker; and Ryan Lang,
Ira Rubin, Bradley Franzen, Chad Elie and John Campos, all of whom are said to have been
involved with processing the illegal funds.

The maximum penalties for the various charges brought forth against these individuals range
from five years in prison and a $250,000 fine to 30 years in prison and a $1 million fine.

“These defendants, knowing full well that their business with U.S. customers and U.S. banks
was illegal, tried to stack the deck,” Fedarcyk said. “They lied to banks about the true
nature of their business. Then, some of the defendants found banks willing to flout the law
for a fee. The defendants bet the house that they could continue their scheme, and they
lost.”

The crackdown on these sites is expected to have significant effects on the US poker
industry, as well as the millions of poker players who used the sites.

Nevada Gov. Brian Sandoval said the allegations made by federal prosecutors against the
three companies were of "grave concern."  But he added that he remained committed to the
possibility that federal legislation will eventually permit Internet gambling in a way that
matches the same rigorous standards that apply to traditional gaming institutions.

The man said to be responsible for facilitating the FBI’s investigation of the poker
industry is 28-year-old Daniel Tzvetkoff, who became a prized informant after being arrested
for masterminding a system for processing illegal funds between US gamblers and websites.

Some Internet gambling sites remain active, however, including Cake Poker and Bodog.
PokerStars has relaunched under the domain PokerStars.eu, and is working normally at the
time of this writing.

Online poker has been illegal in the US since the passage of the Unlawful Internet Gambling.