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Howard Lederer Forfeits Millions As Part Of DOJ Civil Complaint Settlement

Lederer Gives Up Three Properties, Several Bank Accounts and a 1965 Shelby Cobra

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Howard LedererJust weeks after Rafe Furst settled with the U.S. Department of Justice, fellow former Full Tilt board member Howard Lederer has done the same.

In exchange for the opportunity to admit to no wrongdoing in the civil complaint that stemmed from Black Friday, Lederer will forfeit more than $1.25 million and several pieces of real estate property and vehicles.

Lederer, who along with Furst, Chris Ferguson and Ray Bitar, founded Full Tilt Poker, also agreed to not work for any online gambling site until the U.S. has legalized and regulated the industry.

The U.S. Attorney for the Southern District of New York originally sought a total of $42.5 million from Lederer in the civil complaint, but Lederer was able to negotiate a much smaller figure in the settlement.

In addition to a 401k account in his name and a Lloyds offshore bank account in the Isle of Man, Lederer will also pay $1.25 million in funds over the next three years. He was also forced to forfeit his 1965 Shelby Cobra Roadster, a Las Vegas real estate property, as well as the proceeds from the sale of two other homes.

 
 
 
 

Comments

robtr3
over 1 year ago

All told, how much of a forfeiture are we talking about?

 
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RuptureAchilies
over 1 year ago

Most DOJ settlements generally net pennies on the dollar. That doesn't necessarily leave Lederer with significant assets, as he surely spent some of the embezzled funds on frivolous expenditures and depreciated assets.

 
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BDub1
over 1 year ago

I must have missed something. Did he also get the death penalty?

 
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notCIA
over 1 year ago

He and his cronies steal $444 million of which he allegedly received $42 million and this is what the DOJ settles for. Boy oh boy, he learned his lesson!

 
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Eddie5
over 1 year ago

How can anyone say that he did not give back enough until we know the dollar amounts attached to all that was listed as forfeited? Am I missing something???? Are the totals of these bank accounts listed somewhere that I am not seeing?

 
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misfits
over 1 year ago

look on the lvrj. it tells the amounts.. it all adds up to like 2 mill and he has 3 years to pay it back, one payment in 18 months and the rest in 36 months, and the best part is he admits no wrongdoing, and says he had no idea about the problems tilt had with funds.

 
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JohnnyUU
over 1 year ago

The government had no case. Lederer and Furst settled because it (a) cost them less than it would have to defend themselves in court, (b) they are officially "not guilty" since all charges are forever dropped. Plus they can move on with their lives rather than spending $500/hour on legal fees. The government screwed the whole poker community on black friday. Hopefully congress will get their heads out of their collective asses and create regulations so that we can have an effectively run online poker community.

 
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Kentheace
over 1 year ago

Congratulations Howard, all the hard work to save full tilt has been paid back with a very nice deal from the doj. Doing the right thing wasn't easy but you did it as best you could. :)

 
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Eddie5
over 1 year ago

Misfits thanks for the heads up on the LVRJ! How do you interpret this from the LVRJ??...........

In addition, Lederer agreed to turn over two bank accounts of UNKNOWN VALUE, a 1965 Shelby Cobra roadster, two Las Vegas properties with a combined value of approximately $975,000 and an additional $30,000 traceable to the sale of a third Las Vegas property.

What are the balances of bank accounts with UNKNOWN VALUE?

 
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TandG21
over 1 year ago

WTF U got to be kidding DOJ

 
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L2K4FC
over 1 year ago

Hey man white collar crime is where it's at. If all else fails Howard can get a cushy job on Wall St or at Citibank or something, poor guy. I guess I'm the fish for going to work every day, paying my fair share, following the rules and honoring my word.

 
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WPS22
over 1 year ago

So you want Howard's life right now? Really? Yours must really suck

 
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x19
over 1 year ago

this guy went from widespread respect and being called "the professor" to widespread disgust and now being known as "the swindler"......he will NEVER be able to live that down....both he AND his sister should just quietly fade away into obscurity as they are both despised by 98% of players.

 
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vinceaida
over 1 year ago

wrong - despised by 99% of the players.

 
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blegend
over 1 year ago

So after this whole fiasco that lasted nearly 2 years, in the end Howard nets over $400 million while all of us little people that played on Full Tilt still anxiously wait to get paid back our accounts. Justice served once again!

 
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WPS22
over 1 year ago

Howard did not net over $400M. He netted just over $40M.

Between the legal fees, the settlement, and his obvious lack of earning power going forward, he'll probably be broke within a few years, if he's not already.

I don't like him either, I have money that is still tied up, with no definite end in sight.

It's ludicrous to act like he got off totally free though. He's much worse off now than if he never started FTP.

Also, the amount of his fine has nothing to do w/ us getting our money. The money is already there, we are waiting on bureaucracy. It's not like the remission fund is short now b/c Howard got off easy.

 
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clunker
over 1 year ago

biegend Howard was paid 40 million not 400. And how did the government screw the poker community on dark friday johnnyuu. you not might not like the law but until it is changed it is the law. Personnelly I don't like the law that says I cannot walk into any bank and take all there money but it is the law and I live with it. I also dislike the laws that say I have to pay for my food and gas and living accomadations.

 
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WPS22
over 1 year ago

Exactly. Anyone who didn't know the legal situation in America before Black Friday was ignorant.

Anyone who couldn't see the signs in the forms of delayed payouts and articles about multi million dollar seizures just wasn't paying attention.

The gov't didn't swoop in and take our poker away. They made a bad law in 2006 and enforced it, after a long investigation, in April, 2011.

The lazy poker community just ignored the law when it was passed, because they could still play online. Then, when the law actually gets enforced, they act like the gov't flipped a switch and screwed them over. People should have been complaining about UIGEA from day one instead of remaining silent until it's actually enforced and acting all surprised about it.

 
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bparmalee
over 1 year ago

Crime pays..... that's about it.

 
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Ronin555
over 1 year ago

Yet, another example of government/prosecutorial abuse. The statutes under which the US Attorney's Office proceeded against Full Tilt, etc., did not apply to online poker. While Full Tilt was totally mismanaged, it was not a ponzi scheme or a criminal enterprise. Yet, our Federal government swooped in, seized the poker sites, and essentially outlawed online poker. Now, the US Attorney's Office coerces Lederer into relinquishing real estate, etc., on a phony forfeiture complaint. Will Lederer's money be used to reimburse the players? Doubt it. The Feds stuck Poker Stars will that expensive chore. Yep, just another day in the land of the free.

 
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clunker
over 1 year ago

You can deny and misrepresent all you want but it does not change the facts. Like the 1961 gambling wire act[it was not illegal to place a bet but it is illegal to accept those bets] IP the Bush administration gave the banks and financial institutions 2 years to come up with a plan on money movement and how not to finance gambling[poker] accounts. Bush signed the bill into law the last day of his presidency. The next administration has to enforce the all of the laws not just the ones you like.Techically it is not illegal to play poker online it is just illegal to put real money into a poker account online[in a back handed way it makes poker illegal online,no money allowed] thanks to laws passed during the Bush administrations last day.

 
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clunker
over 1 year ago

UIGEA makes it illegal for gambling businesses[Except fantasy sports and certain tribal activities and horse racing] to knowingly accept payments in connection with the participation of another person in a bet or wager. It is not childish it is a fact that on Nov 12,2008 the final banking regulations[termed the final rule] were signed by Bush and went into effect on Jan. 19,2009. The only gambling activities named by UIEGA as legal are fantasy sports horse racing and certain tribal activities by extension all others including poker are illegal to fund [they are not named as legal to fund]. This all happened while Bush was President. The law was passed the banking rules were written[and signed by Bush] while Bush was President. And it was left to people after Bush to enforce the laws left to them. This law actually passed while Bush was President You can deny it all you want but you are wrong

 
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clunker
over 1 year ago

It's not about blame. Your the one stuck on blaming someone.It's about facts and history. Fact the only 3 entities that are mentioned in bill as being able to accept real money deposits fantasy sports,horse racing and certain tribal activities. If not named as legal then they must be illegal. Fact the UIEGA was passed while Bush was President. Fact the banking regulations pertaining to funding gambling accounts were passed and made law while Bush was President. Fact these laws were enforced by the Obama administration. If not for the arrogance and total disregard for the laws by arrogant poker sites and US poker players who both thought they were above the law maybe there would have been a quicker legalization of online poker. It's about facts not blame.

 
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brum747
over 1 year ago

I agree with clunker.Bush signed that and I remember like it was yesterday,he claimed terrorists could funnel money through online gambling sites,including poker sites,without any kind of paper trail.And the DOJ never really bothered anyone until FTP started to screw ppl so obviously they knew more than met the eye.They knew more than everyone else because it seemed they were cracking down on a Ponzi scheme,just like crooked hedge fund managers and other fraudulent investment groups.

 
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clunker
over 1 year ago

Live poker is run by and regulated by each state. The federal government has no say in what a state does. BLAME BLAME BLAME. You are really clueless.

 
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