Full Tilt Poker accused of Ponzi scheme

By Bizclik Editor


We first reported back in April about online poker site, Full Tilt Poker, which got shut down by federal authorities due to its illegal gambling capabilities. We’re finding out today that the U.S. Justice Department accused poker celebrities and Full Tilt owners Howard Lederer and Christopher Ferguson and other executives of defrauding poker players on the poker website out of more than $300 million.

The U.S. Attorney in the Southern District of NY filed a motion Tuesday morning to amend an earlier civil complaint to allege that the directors operated a Ponzi scheme that allowed the company to pay out $444 million to themselves and other owners/famous poker players. The Wall Street Journal says that the government alleges that Full Tilt executives misrepresented to the website’s players that the money the company was supposed to be holding in players’ accounts was safely held when it was actually being used for other purposes like owner profits.

Preet Bharara, U.S. Attorney for the Southern District says Full Tilt Poker “cheated and abused its own players to the tune of hundreds of millions of dollars" and that "insiders lined their own pockets with funds picked from the pockets of their most loyal customers while blithely lying to both players and the public alike about the safety and security of the money deposited with the company."

Stay posted for any updates on this story. 


Featured Articles

Top 10 must-read sustainable leadership books for CEOs

As former Unilever boss Paul Polman debuts his new net zero book, we ask – can profit and purpose truly exist? Here are 10 business books to prove they can

Top 20 essential leadership resources for Black executives

To celebrate Black History Month, here are 20 resources for Black leaders – from business books to leadership coaches to business school exec programs

Broadridge study reveals huge impact of AI on C-suite

Broadridge Financial Solutions spoke to 500 C-suite executives from across the globe, many of whom said AI was significantly changing the way they work

PwC's Kathryn Kaminsky – the role of boards on social issues

Leadership & Strategy

Why your business needs a Chief Transformation Officer

Leadership & Strategy

12 top AI and ML trends for the enterprise in 2023 – Dataiku

Technology & AI