NEW YORK (CNNMoney) -- Federal prosecutors on Tuesday accused the operators of the online site Full Tilt Poker of operating like a Ponzi scheme, siphoning more than $440 million in gambler winnings to board members and owners.
The U.S. Attorney's Office for the Southern District of New York also charged PokerStars and Absolute Poker, as well as poker celebrities Howard Lederer and Christopher Ferguson, of taking part in and profiting from the scams, according to an amended version of a forfeiture and civil money laundering complaint that was originally filed in April.
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The prosecutor is seeking money laundering penalties against the poker champs and is also seeking to forfeit money gained from the alleged scheme. The original complaint from April charged board member Raymond Bitar and 10 other defendants with bank fraud, illegal gambling and money laundering offenses.
The U.S. Attorney's Office for the Southern District of New York also charged PokerStars and Absolute Poker, as well as poker celebrities Howard Lederer and Christopher Ferguson, of taking part in and profiting from the scams, according to an amended version of a forfeiture and civil money laundering complaint that was originally filed in April.
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According to the complaint from U.S. Attorney Preet Bharara, Full Tilt Poker and its board, including Lederer and Ferguson, "defrauded players by misrepresenting that their funds on deposit in online gambling accounts were safe, secure, and available for withdrawal at any time."
"In reality, Full Tilt Poker did not maintain funds sufficient to repay all players, and in addition, the company used player funds to pay board members and other owners more than $440 million since April 2007," the complaint read.The prosecutor is seeking money laundering penalties against the poker champs and is also seeking to forfeit money gained from the alleged scheme. The original complaint from April charged board member Raymond Bitar and 10 other defendants with bank fraud, illegal gambling and money laundering offenses.
