Sportingbet One Time Partner was Very Silent: Ordered to Pay Millions

Andris N. Pukke was a "silent partner" during the early days of Sportingbet online gambling enterprise.

"(Andris) was a silent partner (and barely a partner) - never had a say,
never did any work," someone close to Sportingbet told Gambling911.com this weekend.  "Just a close friend of the founder who helped out fiscally in
the early days in Margarita."

John Pukke testified he made a $45,000 investment in 1998 in Internet Opportunity, a company purportedly formed by his godson. Internet Opportunites was a predecessor company to Sportingbet Plc.

And now "the government is all over his ass", our source said, having been in contact with Mr. Pukke.

U.S. District Judge Peter J. Messitte ruled this week that Andris N. Pukke, former head of bankrupt Germantown credit counseling agency AmeriDebt, is in contempt of court and ordered him to turn over about $40 million worth of disputed assets, including his interests in the Internet gambling venture.

Pukke's investment in the online gambling enterprise became known during a 2004 divorce proceeding. 

Messitte said Pukke had not been forthcoming with a receiver the judge appointed to find Pukke's assets. He said that Pukke's credibility was "zero" and that he continued to obscure his holdings during lengthy testimony at a 10-day contempt hearing.

Pukke had agreed to pay up to $35 million in restitution to settle a lawsuit filed by the Federal Trade Commission, which claimed he and AmeriDebt used hidden upfront fees to unfairly collect $172 million from about 300,000 cash-strapped debtors. Pukke allegedly spent much of that money on a lavish lifestyle.

After fees and attorney expenses, only about $4 million remains of $10 million collected to pay debtors.

The FTC said last month that the money was insufficient for a worthwhile repayment program.

FTC lawyer Jeanne M. Crouse said Wednesday's ruling was good news for consumers. "Every day Mr. Pukke hides assets is a day that distribution to victimized consumers is denied."

Messitte froze Pukke's assets in 2005 while the FTC case was still pending, and appointed the receiver, Robb Evans & Associates, to track down his holdings. In the fall, the receiver asked Messitte to hold Pukke in contempt, saying he was using family and friends to hide substantial sums.

Pukke denied allegations he was not forthcoming about his holdings at the contempt hearing. He did not comment after the judge's ruling Wednesday. Messitte said he would consider a prison term if Pukke continues to shield his funds.

----

Christopher Costigan, Gambling911.com

Originally published March 18, 2007 5:30 pm ET