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The Indictments: Six Men Have Pleaded Guilty

Government Still Pursuing Criminal Charges Against Others

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Preet BaharaU.S. Attorney Preet Bahara shocked the poker community by indicting 11 men associated with three major offshore poker sites. A year later, six of them have pleaded guilty in front of a federal judge, while five are still awaiting their day in court.

Only about a month after Black Friday, payment processor Bradley Franzen pleaded guilty to conspiracy to commit bank fraud, to accepting funds in connection with unlawful Internet gambling and conspiracy to commit money laundering.

Franzen, who had originally pleaded not guilty after turning himself into the FBI on April 18, signed a plea deal.

Prosecutors would have to wait until the end of 2011 before Absolute Poker co-owner Brent Beckley pleaded guilty to conspiracy to commit bank and wire fraud. According to Reuters, he told the federal judge, “I knew it was illegal to deceive the banks in this way.”

For the charge of tricking banks into processing the illegal Internet gambling transactions, Beckly was facing a maximum of 30 years in prison. He reportedly will spend 12-18 months behind bars.

Beckley’s accomplice Ira Rubin, who worked as a payment processor, struck a deal in January 2012. The plea agreement will likely see him serve less than two years in prison.

The DOJ also accused Rubin of tricking banks into accepting funds by disguising payments. He was facing a potential sentence of more than 80 years.

Rubin was arrested in Guatemala in late April before extradition to the U.S.

In late February, Ryan Lang pleaded guilty in federal court. He was charged with obtaining accounts at U.S. banks for the poker sites, lying about the nature of the financial transactions, and covering it up by creating phony corporations and websites.

After unsuccessfully using the Wire Act clarification to dismiss charges, John Campos and Chad Elie struck deals with prosecutors in late March less than two weeks before their trial was set to begin.

Daniel TvetzkoffElie faces six to 12 months in prison after admitting to conspiracy to commit bank fraud. Campos pleaded guilty to a misdemeanor charge.

The star witness for the prosecution was set to be Daniel Tzvetkoff — the man believed to have played a important role in the government being able to build its case.

According to Forbes, the government will now go after the remaining indicted individuals: Isai Scheinberg and Paul Tate of PokerStars, Ray Bitar and Nelson Burtnick of Full Tilt Poker and Scott Tom of Absolute Poker.

Along with the criminal charges, the government filed a $3 billion civil money laundering and forfeiture action against the companies and the defendants. The civil complaint was amended in September, alleging that Full Tilt Poker principals defrauded players out of more than $440 million.

 
 
 
 

Comments

bigtime1957
over 5 years ago

I'm sorry. But seems poker is not that upstanding even now. The poker world still has not banned any of these guys from playing poker any where in the world. even in the US. Until the poker world bans these players from ever playing in competition poker, The poker world will and always will be in the in the not so legit business, poker wants to be seen as, I for one am calling for a ban, Of these few poker players, who were made famous by TV, to be excluded from any poker event for life, Time we send a message to the world, We will not put up with any illegal activities by poker players against the poker world,

 
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EdTheTed
over 5 years ago

The poker world hasn't banned these guys because in many of their cases we know it is just the USA that decided to use an obscure piece of legislation to close down online poker because of some moral extremists. Just because a US prosecutor deems something wrong doesn't mean the rest of the world sees it the same way. We are still happily playing online poker thank you very much.

 
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sportznut1000
over 5 years ago

i still dont understand why these guys were arrested for tricking banks into allowing deposits which seemed to be a huge reason why online poker was shut down yet every month im able to make deposits into my sports betting accounts on 3 different sports betting sites and every time it shows up on my statement as some weird transaction. the same thing that pokerstars and full tilt did. this country makes so much money based off sports betting the goverment chooses to ignore it. i dont get it.

you can almost say the same thing about gas station transactions for anyone. a little different but for anyone who has ever bought gas with a debit card but processed it as credit they know gas companies only charge you for a $1 to make sure the account is active and then dont charge you for the rest until a couple days later. this puts tons of customers overdrawn every day because it tricks the bank basically. as long as you have at least a $1 in your account you can fill up your tank and just go overdrawn.

 
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