Sources: UB.com, Absolute Poker Resolution With US Justice Dept. Close to Finalized
PocketFives.com on Thursday reported that UB.com and its sister online poker site, AbsolutePoker.com, are close to finalizing a resolution with the US Justice Department that could see affected customers paid, at least partially.
The US Justice Department has seized a large chunk of UB.com’s bank accounts as part of a probe that concluded exactly one year ago this week (April 15, 2011). Those funds will be available to customers who have made a claim with the US Government based on what is owed subtracted from what is under seizure.
The Kahnawake Gaming Commission (KGC), which licenses UB.com and Absolute, suggested that players would likely see between 15 to 20 percent of what is owed to them. In 2006 another online gambling website, BetOnSports.com, was shut down with players receiving 3 to 5 cents on the dollar five years later. The US Government had not seized funds of BOS.
The US Attorney’s Office in the Southern District of New York oversaw the investigation into UB.com and expressed a willingness to assist those players affected at the time of last year’s indictment. However, lawyers on both sides have extended the resolution deadlines on a number of occasions thus far, preventing any form of reimbursement to UB.com/Absolute Poker customers.
An Absolute Poker and UB spokesperson told PocketFives on Wednesday, "Our discussions with the DOJ are still in progress. We are confident that these discussions are nearing resolution, while legal constraints prevent us from making further details public or speculating on a time line at this stage."
Executives from Full Tilt Poker and PokerStars were also named in the US Justice Department indictment from last year.
UB.com stands the best chance of resolving outstanding issues with the DOJ in the short term. The only UB.com executive charged with money laundering and bank fraud, Brent Buckley, has already plead guilty and will be sentenced next Wednesday April 19. He is expected to serve no more than 18 months behind prison.
Scott Tom, another executive named in the indictment, was charged with a simple gambling violation. He was the only defendant to escape the more serious money laundering and bank fraud charges.
The UB.com software platform is considered one of the most advanced with many experts suggesting a sale of the product and database could yield substantial returns for Buckley and his partners once a settlement arrangement with the Feds has been reached.
Scott Tom aside, final negotiations should only involve an established fine paid to the US Government.
- Chris Costigan, Gambling911.com Publisher
