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What The US Government Alleges Howard Lederer Did With The Full Tilt Poker Player Funds

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Published on:
Sep/12/2012
What The US Government Alleges Howard Lederer Did With The Full Tilt Poker Playe

Distributions to Full Tilt Owners, Including the FTP Insiders 124: Rather than protect player funds as promised, Full Tilt Poker distributed hundreds of millions of dollars to its owners. Beginning in April 2007 and continuing through April 2011, Tiltware LLC’s Board of Directors, to wit, the FTP Insider Defendants, authorized the distribution of approximately $443,860,530 to the owners of Tiltware LLC, including themselves, further promoting and facilitating the ongoing illegal operation of Full Tilt Poker during this time period. Many of the distribution payments were transferred from Full Tilt Poker directly to bank accounts the professional poker players affiliated with Full Tilt Poker and other owners had established in Switzerland and other foreign countries.

125. Defendant Bitar personally received at least approximately $41 million, including at least $34,454,781.53 in ownership distributions and at least an additional $6.3 million in “profit sharing” payments. Full Tilt Poker records reflect that at least a portion of these payments were deposited into an account at NatWest Bank held in the name of Ray Bitar, numbered GB81 RBOS 6095 4234 0877 66.

126. Defendant Lederer personally received at least $42.5 million, including more than $39 million in ownership distributions and at least $3.5 million in “profit sharing” payments. Full Tilt Poker records reflect that a large portion of these payments were deposited into an account at Wells Fargo Bank,

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N.A., held in the name of HH Lederer Consulting LLC, numbered 7655741861, and an account held at Lloyds TSB International in the Isle of Man, in the name of Howard Lederer, numbered GB56LOYD30166314010402.

127. Defendant Ferguson was allocated approximately $85,161,305.88 in distributions. Tiltware records reflect that, of this amount, at least $30.2 million of this sum was actually transferred to Ferguson’s personal accounts. Additionally, Tiltware records reflect that at least $11.8 million from the remaining balance were transferred for the use and benefit of Ferguson. The remaining distribution amount is characterized as “owed” to Ferguson. Of the approximately $30.2 million transferred to Ferguson as dividend payments, Full Tilt Poker records reflect that at least a portion of these funds were deposited into an account held at Citibank, N.A., in the name of Chris Ferguson, numbered 40039049628.

128. Defendant Furst received at least $11,706,323.96 in distributions. Full Tilt Poker records reflect that at least a portion of these funds were deposited into an account held at Pictet & Co. Bankers in Switzerland in the name of Telamonian Ajax Trust, numbered CH87 0875 5057 0684 0010 0.

129. The bank accounts referred to in Paragraphs 125-128 are referred to collectively as the “FTP Insider Accounts.”

130. The other approximately 19 owners of Tiltware LLC received the remainder of the approximately $443,860,530

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distributed. For example, a professional poker player and Full Tilt Poker owner (“Player Owner 1”) received at least approximately $40,078,646.64 in distributions, as well millions of dollars characterized as loans from Full Tilt Poker. At least approximately $4.4 million of these loans have not been repaid.

131. These ownership distributions continued at a rate of approximately $10 million per month when, by at least the fall of 2010, Full Tilt Poker’s management was aware that Full Tilt Poker was having difficulty collecting funds from U.S. player accounts. Full Tilt Poker also continued making “loans” to its professional poker players who also owned an interest in the company, including loan payments totaling more than $2,000,000 to Player Owner 1 between August 2010 and January 2011.

Lederer Assets Acquired With Proceeds Traceable to His Unlawful Activity

A. Lederer Funded a Personal Bank Account With Unlawful Proceeds

132. A review of bank records from the Howard Lederer account noted above at Wells Fargo Bank, N.A., held in the name of HH Lederer Consulting LLC, numbered 7655741861 (the “Lederer Consulting Account”), reflects that from approximately December 2006 through September 2011, at least $44,314,997.31 in United States currency that was directly tied to the criminal conduct described above was deposited into the Lederer Consulting Account, including as set forth in the following transactions:

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a.  From approximately December 2006 through September 2011, at least $40,241,878.91 in United States currency was deposited into the Lederer Consulting Account from Pocket Kings, Ltd.

b.  On or about May 26, 2009, at least $999,982 in United States currency was deposited into the Lederer Consulting Account from Ranston, Ltd.

c.  Between approximately March 1, 2011 and April 5, 2011, five wire transfers totaling at least $2,041,491.20 in United States currency were made from Basler Kantonal Bank into the Lederer Consulting Account on behalf of B.T. Management Services - Gambling. B.T. Management Services was a company through which Full Tilt Poker conducted business.

d.  On or about January 31, 2008, a wire transfer in the amount of $986,662.20 in United States currency was made from Australia - Crown Melbourne Limited into the Lederer Consulting Account.

133. No additional, substantial funds were deposited into the Lederer Consulting Account during the time periods set forth in paragraph 132, above, other than from the sources set forth in that paragraph.

134. Between approximately December 26, 2006, through approximately August 2, 2011, at least approximately $42,470,660 of the above-identified illicit funds that had been deposited into the Lederer Consulting Account were transferred into a personal

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bank account at Wells Fargo Bank, N.A., numbered 2700009400, held

in the name of Account”).

B.

Howard and Susan Lederer (the “Lederer Personal

Lederer Real Property Acquired With Unlawful Proceeds

(i) 99 Hawk Ridge Drive, Las Vegas, Nevada

135. Susan D. Lederer, Trustees of the Lederer Family Trust, purchased and obtained title and deed to a parcel of land known as “LOT 1 AS SHOWN ON THE FINAL MAP OF SUMMERLIN VILLAGE 18 - PARCEL ‘E’ ON FILE IN BOOK 108, PAGE 2 OF PLATS, IN THE OFFICE OF THE COUNTY RECORDER OF CLARK COUNTY, NEVADA,” Nevada Assessor’s Parcel Number (“APN”) 164-14-411-001, also known as 99 Hawk Ridge Drive, Las Vegas, Nevada (the “Hawk Ridge Property”). The declared value and purchase price of the Hawk Ridge Property was $674,000.00. This purchase was recorded on March 30, 2005.

136. By “Grant, Bargain, Sale Deed,” dated February 20, 2008, Howard H. Lederer and Susan D. Lederer, Trustees of the Lederer Family Trust, conveyed the Hawk Ridge Property to “Howard H. Lederer and Susan D. Lederer, Trustees of the Lederer Family Trust, Dated January 29, 2002.” This conveyance was recorded on February 22, 2008.

137. Merlin Contracting & Development, LLC (“Merlin”) is a luxury home builder doing business in the State of Nevada that specializes in the construction of high-end, custom homes.

On or about March 22, 2005, Howard H. Lederer and

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138. In or around 2007, defendant Lederer contracted with Merlin to construct a main home and guest house at the Hawk Ridge Property. (The guest house is at 55 Skybird Court, Las Vegas, Nevada, discussed below.)

139. Lederer paid Merlin approximately $3,654,654.35 from the Lederer Personal Account in connection with the construction of the guest house at the Hawk Ridge Property. The following table indicates the payments made from the Lederer Personal Account to Merlin:

140. Lederer also paid Merlin approximately $6,859,070 from the Lederer Personal Account, the Lederer Consulting Account and through cashier’s checks in connection with the construction of the main house at the Hawk Ridge Property. The following table

Date

Amount

Beneficiary

Check No.

2/27/09

$200,000

Merlin Construction

Wire transfer

3/13/09

$300,000

Merlin Construction

Wire transfer

11/3/09

$450,000

Merlin Construction

2950

1/18/10

$300,000

Merlin Cont. & Dev.

3051

2/1/10

$300,000

Merlin Contracting

3024

3/9/10

$250,000

Merlin Cont. guest

2571

3/23/10

$1,200,000

Merlin Construction

Wire transfer

6/9/10

$100,000

Merlin Contracting

3182

10/16/09

$500,000

Merlin Contracting

2910

4/21/11

$4,547

Merlin Contracting

3604

6/2/11

$50,107

Merlin Contracting

3558

TOTAL:

$3,654,654

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indicates the payments made to Merlin in connection with this construction from several bank sources owned or controlled by defendant Lederer:

Date

Amount

Beneficiary

Source

7/6/07

$1,000,000.00

Merlin Construction

Personal Account

8/14/07

$500,000.00

Merlin Construction

Personal Account

9/20/07

$500,000.00

Merlin Construction

Personal Account

10/9/07

$500,000.00

Merlin Construction

Personal Account

7/31/08

$300,000.00

Merlin Construction

Personal Account

8/7/08

$260,821.85

H. Lederer / Merlin Construction

Wells Fargo Cashiers Check

9/8/08

$200,000.00

Merlin Construction

Consulting Account

10/15/08

$200,000.00

Merlin Construction

Personal Account

12/5/08

$516,219.39

H. Lederer / Merlin Construction

Wells Fargo Cashiers Check

1/28/09

$291,777.65

H. Lederer / Merlin Construction

Wells Fargo Cashiers Check

3/11/09

$163,578.10

H. Lederer / Merlin Construction

Wells Fargo Cashiers Check

4/3/09

$389,969.45

H. Lederer / Merlin Construction

Wells Fargo Cashiers Check

5/13/09

$160,889.10

H. Lederer / Merlin Construction

Wells Fargo Cashiers Check

5/19/09

$150,000.00

Merlin Construction

Personal Account

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5/28/09

$342,909.60

H. Lederer / Merlin Construction

Wells Fargo Cashiers Check

7/20/09

$238,879.90

H. Lederer / Merlin Construction

Wells Fargo Cashiers Check

8/22/09

$200,000.00

Merlin Contracting

Personal Account

9/15/09

$499,024.96

H. Lederer / Merlin Construction

Wells Fargo Cashiers Check

10/16/09

$400,000.00

Merlin Contracting

Personal Account

1/18/10

$20,000.00

Merlin Cont. & Dev.

Personal Account

2/1/10

$25,000.00

Merlin Contracting

Personal Account

TOTAL:

$6,859,070.00

141. The nine Wells Fargo / Wells Fargo Home Mortgage cashier’s checks listed above all include reference number 0384780082268806. The checks and related documentation made from the Lederer Personal Account, listed above, reference either “82268806” or “99 Hawk Ridge.” The number 0384780082268806 refers to a Lederer Wells Fargo New Construction loan account, referred to by the lender as account number 0082268806, in the amount of $3,500,000.

142. Accordingly, for construction of both the main the guest house at the Hawk Ridge Property, Lederer paid least approximately $10,513,724 in United States which funds were traceable to proceeds of the criminal

house and Merlin at currency, scheme set forth above.

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(ii) 55 Skybird Court, Las Vegas, Nevada

143. The guest house for the Hawk Ridge Property is the property known as 55 Skybird Court, Las Vegas, Nevada, 89135 (Nevada APN: 164-14-413-043)(the “Skybird Property”). In addition to the more than $3 million in payments to Merlin for the construction of the Skybird Property discussed above, several other payments were made from the Lederer Personal Account for the purchase and construction of the Skybird Property, as follows.

144. On or about April 23, 2008, Susan Lederer issued check number 2337 from the Lederer Personal Account, payable to cash in the amount of $50,000, with the notation “Chicago Title Cashiers Check.”

145. On or about the same day, April 23, 2008, Dale Parry, step-father to Howard Lederer, made an initial deposit for the purchase of the Skybird Property by means of a Wells Fargo cashier’s check in the amount of $50,000 payable to Chicago Title, RE: RED HAWK LOT 16. This cashier’s check bore the handwritten notation “08019079-CRB/2541.” An escrow receipt in the amount of $50,000 was issued by Chicago Title for Escrow No. 08019079, and acknowledged the funds received from “Parry” for the account of “SP HB Living Trust/Parry” for the purchase of 55 Skybird Court.

146. On or about June 6, 2008, a wire transfer in the amount of $1,116,753.88 was sent from the Lederer Personal Account to Chicago Title, in advance of the June 13, 2008, closing on the Skybird Property.

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147. A review of relevant real property and banking records reflects that on or about June 10, 2008, the Howard

Lederer Family $1,166,753.88, Trustee).

Trust obtained title to the Skybird Property for from SP HB Living Trust (Hugh L. Bassewitz,

(iii) 10808 Bozzolo Street, Las Vegas, Nevada

148. records reflects that on or about October 8, 2008, Susan Lederer purchased the property known as 10808 Bozzolo Street, Las Vegas, Nevada, 89141 (Nevada APN: 176-36-215-015)(the “Bozzolo Property”) for $222,000 in United States currency, from Mark Kroopneck.

149. Real Property records reflect that Howard Lederer is the owner of record of the Bozzolo Property, with Susan Lederer as co-owner. The Bozzolo Property is held as a joint tenancy.

150. On October 27, 2008, $200,000 was transferred from the Lederer Consulting Account to the Lederer Personal Account. On October 24, 2008, $25,000 was transferred from the Lederer Personal Account to an escrow account held at Escrow of the West, Beverly Hills, California (the “Escrow of the West Account”), which account was used to facilitate the purchase of the Bozzollo Property from seller Marc Kroopneck. On October 28, 2008, an additional $198,873.02 was transferred from the Lederer Personal Account to the Escrow of the West Account. Records from the Nevada Title Company dated October 30, 2008, reflect receipt of

A review of relevant real property and banking

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$207,209.31 from Susan Lederer, through the Escrow of the West Account, for the purchase of the Bozzolo Property.

151. On September 3, 2008, Susan Lederer issued check number 2437 drawn on the Lederer Personal Account in the amount of $7000.00, payable to Charles Kroopneck, with the notation “furniture - 10080 Bozzolo.”

152. On November 24, 2008, Susan Lederer issued check number 2537 drawn on the Lederer Personal Account in the amount of $608.11, payable to the Clark County Treasurer for taxes on the Bozzolo Property.

153. In March 2012, the Bozzolo Property was sold for approximately $152,000.

(iv) 2735 Twin Palms Circle, Las Vegas, Nevada

154. On or about October 25, 2007, Ticor Title of Nevada, Inc. (“Ticor”) received check number 2128, drawn on the Lederer Personal Account, as a deposit for the purchase of the property known as 2735 Twin Palms Circle, Las Vegas, Nevada 89117(APN: 163-10-210-004) (the “Twin Palms Property”). The check, which was dated October 20, 2007, was signed by Susan Lederer, payable to Ticor, with the notation “2735 Twin Palms.”

155. On or about December 12, 2007, Ticor received cashiers check number 0760301956, dated December 10, 2007, in the amount of $445,865, from Wells Fargo on behalf of Howard Lederer and Susan Lederer as escrow for the purchase of the Twin Palms Property.

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156. Howard and Susan Lederer, as Trustees, secured a mortgage in the amount of $417,000 from Wells Fargo Mortgage, Inc. for the purchase of the Twin Palms Property, of which $414,223 was wired by Howard Lederer to Ticor on or about December 2, 2007, for payment to April O’Brien, seller of the Twin Palms Property.

157. On December 13, 2007, the Lederer Family Trust, Howard H. Lederer Trustee and Susan D. Lederer Trustee, obtained title to the Twin Palms Property from April O’Brien for the purchase price of $905,000.

(v) 5426 Fawn Chase Way, Las Vegas, Nevada

158. In or about February 2008, in the days preceding Susan Lederer’s purchase of the property known as 5426 Fawn Chase Way, Las Vegas, Nevada (APN: 164-25-714-119) (the “Fawn Chase Property”), Susan Lederer received at least approximately $135,000 in wire transfers from the Lederer Personal Account into a separate checking account, number 7106065, held in her name at Wells Fargo Bank (the “Susan L. Account”). These transfers were as follows:

159. On or about January 25, 2008, Susan Lederer issued check number 1319 from the Susan L. Account, made payable to K.B.

Date

Amount

Beneficiary

1/10/2008

$50,000

Susan Lederer, Acct 7106065

1/28/2008

$70,000

Susan Lederer, Acct 7106065

2/12/2008

$15,000

Susan Lederer, Acct 7106065

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Homes in the amount of $6,800. On or about February 7, 2008, Susan Lederer issued check number 1320 from the Susan L. Account, made payable to cash in the amount of $27,199, which check was further used to purchase a cashier’s check corresponding to the closing date on this property. Upon information and belief, these two checks represent a down payment for the Fawn Chase Property.

160. On or about February 15, 2008, Susan Lederer obtained a mortgage in the amount of $230,993 from Countrywide Home Mortgage (“Countrywide”), for the purchase of the Fawn Chase Property.

161. On or about February 19, 2008, Susan Lederer purchased the Fawn Chase Property from KB Home Nevada Inc. for $329,990.

162. On or about the same date, February 19, 2008, Howard Lederer filed a Quit Claim Deed transferring his interest in the Fawn Chase Property to Susan Lederer.

163. A review of bank records reflects that at least approximately $3,162,500 was transferred from the Lederer Personal Account to the Susan L. Account between January 10, 2008 and August 18, 2011.

164. A review of bank records for the Susan L. Account reflects that from March 6, 2008 through November 18, 2011, Susan Lederer made monthly mortgage payments on the Fawn Chase Property totaling approximately $81,067.11.

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(vi) 309 Kingsclear Court, Las Vegas, Nevada

165. In or about 1995, Howard Lederer purchased the property known as 309 Kingsclear Court, Las Vegas, Nevada (the “Kingsclear Property”) for approximately $505,378.

166. In or about 2002, Howard Lederer transferred ownership of the Kingsclear Property to the Lederer Family Trust, thereby adding Susan Lederer as a co-owner.

167. On or about July 31, 2000, Howard Lederer obtained a $377,800 mortgage against the Kingsclear Property from Countrywide.

168. Between approximately January 2007 and January 2008, Howard Lederer or his designee made at least 13 monthly payments to Countrywide from the Lederer Personal Account to cover mortgage payments on the Kingsclear Property.

(vii) 6572 Sodalite Street, El Dorado, California

169. A title search conducted on 6572 Sodalite Street, El Dorado, California, APN 092 390 05 100 (the “Sodalite property”), lists the owners as Michael Scott Dappen, Diana Denise Dappen Tyler, Duane David Dappen and Susan Diane Dappen Lederer, each with a 25% ownership.

170. From approximately March 2007 through June 2011, Susan Lederer issued twenty-two checks drawn on the Lederer Personal Account made payable to Diana Tyler, Duane Dappen and Michael Dappen, totaling $507,000. Some examples of the memo sections on these checks reflect, “loan,” “loan - 175K,” “home

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construction,” “paint barn & garage,” “deposit share of house” and “6572 Sodalite 1/4 share.” In addition, from December 2007 through May 2008, Susan Lederer issued eleven (11) checks drawn on the Lederer Personal account made payable to Serota Family Construction totaling approximately $220,898. Some examples of the memo sections on these checks reflect, “home construction,” “deposit cabinets” and “6572 Sodalite.” Based on the timing of the above-noted checks and the memo lines, there is probable cause to believe the money from the Lederer Personal Account was used to pay for the purchase and construction of the Sodalite Property.

C.

and a Simplified Employee Pension Individual (“SEP-IRA”).

172. Through LPL Financial, Howard the Howard Henry Lederer 401K Profit Sharing Cromwick and Davey Retirement Planners, LLC.

D.  Lederer Automobiles Purchased Proceeds

Lederer Retirement Accounts Funded With Unlawful Proceeds

From October 2008 through August 2010, Howard

seven checks drawn on the Lederer Personal Account totaling approximately $371,077, made payable to LPL Financial. These funds were subsequently invested in defined pension plans

171. Lederer issued

(i) 2008 Maserati GranTurismo

173. On or about August 23, 2007, check #1840 in the amount of $10,000, payable to car dealer Penske-Wynn Maserati and

98

Retirement Account

Lederer established Plan & Trust with

With Unlawful

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drawn on the Lederer Personal Account, was endorsed by Susan Lederer as a down payment on a 2008 Maserati GranTurismo, VIN number ZAMGJ45A380036891 (the “2008 Maserati”).

174. On or about February 14, 2008, Howard and Susan Lederer purchased the 2008 Maserati.

175. On or about February 14, 2008, Susan Lederer issued a check from the Lederer Personal Account payable to “Cash” in the amount of $83,666.23, which check contained the notation “Maserati” in the memo section. A cashier’s check in the amount of $83,666.23 was received by Penske-Wynn Maserati in connection with the purchase of the 2008 Maserati.

176. Howard Lederer received a trade-in credit towards the purchase of the 2008 Maserati by trading in a 2002 Porsche 911, VIN WPOCA299X2560680.

177. On or about March 31, 2008, Susan Lederer issued a check from the Lederer Personal Account payable to the Nevada Department of Motor Vehicles in the amount of $2,094.38. The memo section of this check contains the notation “Maserati.”

178. On or about February 17, 2009, Susan Lederer issued a check from the Lederer Personal Account payable to Penske-Wynn Maserati in the amount of $8,035.59. The memo section of this check indicates that these funds were used for automobile repairs.

179. On or about March 6, 2009, Susan Lederer issued a check from the Lederer Personal Account payable to the Nevada Department of Motor Vehicles in the amount of $1,699.00. The memo

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section of the check contains the notation “SW4701,” which was the Nevada license tag number for the 2008 Maserati at the time this check was issued.

180. On or about October 21, 2009, Susan Lederer issued a check from the Lederer Personal Account payable to Penske-Wynn Maserati in the amount of $3,495.61. The memo section of this check indicates that these funds were used for automobile repairs.

181. On or about May 19, 2011, Howard Lederer received credit in the amount of $63,000 towards the purchase of a 2012 Audi A8-L, described more fully below, by transferring title from the 2008 Maserati to Desert Audi in Las Vegas, Nevada (“Desert Audi”).

(ii) 2008 Audi Q7

182. On or about February 25, 2008, Howard and Susan Lederer purchased a red 2008 Audi Q7, VIN number WA1BV7L88D028831 (the “2008 Audi Q7”), from Desert Audi.

183. The purchase agreement invoice from Desert Audi for the 2008 Audi reflects a purchase price of $71,657.73.

184. On or about February 25, 2008, Howard Lederer issued check number 2301 from the Lederer Personal Account, payable to Desert Audi in the amount of $71,657.73. The memo section of this check contains the notation “Q7 2008.”

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(iii) 2008 Audi A8L

185. On or about May 16, 2008, Howard and Susan Lederer purchased a black, 2008 Audi A8L, VIN number WAUMR94E38N014682 (the “2008 Audi A8"), from Desert Audi.

186. Howard and Susan Lederer purchased the 2008 Audi A8 through two checks drawn on the Lederer Personal Account, totaling $110,782.81 and made payable to Desert Audi. They also received a $10,000 trade-in credit for a 2008 Audi A8L, VIN WAUML44E66NO15617, which trade-in vehicle had been purchased for $90,895.36 by check number 1539, dated February 13, 2006, drawn on the Lederer Personal Account and made payable to Desert Audi.

187. Check number 2201, dated February 1, 2008, was drawn on the Lederer Personal Account, made payable to Desert Audi in the amount of $10,000, and endorsed by Howard Lederer. The memo section of this check contains the notation “deposit on 2008 W-12.”

188. Check number 2342, dated May 15, 2008, was drawn on the Lederer Personal Account, made payable to Desert Audi in the amount of $100,782.81, and endorsed by Susan Lederer. The memo section of this check contains the notation “Audi 2008 W-12.”

(iv) 2009 Audi A8

189. On or about December 31, 2008, Howard and Susan Lederer purchased a black, 2009 Audi A8, VIN number WAUMV94E39N000942 (the “2009 Audi”), from Desert Audi.

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190. The purchase agreement invoice from Desert Audi for the 2009 Audi reflects a purchase price of $103,091,31.

191. Check number 2398, dated December 31, 2008, was drawn on the Lederer Personal Account, made payable to Desert Audi in the amount of $103,091.31, and endorsed by Susan Lederer. The memo section of this check contains the notation “A8L - TQ Drive.”

(v) 2012 Audi A8 L Quattro

192. On or about June 30, 2011, Howard Lederer purchased a black, 2012 Audi A8-L, VIN number WAUR4AFD7CN000819 (the “2012 Audi”), from Desert Audi.

193. The purchase agreement invoice from Desert Audi for the 2012 Audi reflects a selling price of $156,549.

194. Lederer received a $56,500.00 trade-in credit for the 2008 Audi A8 in connection with the purchase of the 2012 Audi.

195. Lederer also received $63,000 in credit as a down payment toward the purchase of the 2012 Audi by relinquishing title to the 2008 Maserati and transferring title to Desert Audi.

196. Lederer completed the purchase of the 2012 Audi by making two payments, totaling $42,958.23, on his American Express card. The first charge for $10,000 was processed on or about January 29, 2011. The second charge for $32,958.23 was processed on or about June 30, 2011.

197. A review of reflects that the American of the 2012 Audi were paid

banking and credit card records Express charges related to the purchase in full with funds drawn on the Lederer

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Personal Account, which funds are traceable to the offenses charged.

(vi) 2010 “1965” Shelby Cobra 198. Between approximately November, 2010, and March,

2011, Susan Lederer acquired and made improvements to a 1965 Shelby Cobra roadster, Nevada VIN number DMV52285NV and unit serial number CSX 6052 (the “1965 Shelby”). Payments for the purchase of and improvement to the 1965 Shelby were all made from the Lederer Personal Account.

199. On or about November 2, 2010, Susan Lederer issued check number 3313, drawn on the Lederer Personal Account, and made payable to DenBeste Motorsports LLC (Windsor, CA) (“DenBeste”), in the amount of $60,760. The memo portion of this check contains the notation “Shelby Cobra CSX-6052.” Prior to Susan Lederer’s acquisition of the 1965 Shelby, DenBeste had held title to that vehicle in Arizona.

200. Susan Lederer wrote checks drawn on the Lederer Personal Account at least three additional times in connection with the 1965 Shelby.

201. Check number 3318, dated November 29, 2010, was issued from the Lederer Personal Account, made payable to Speedway Classic Cars in the amount of $36,000, and endorsed by Susan Lederer. The memo section of this check contains the notation “Deposit + Parts Cobra.”

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202. Check number 3390, dated February 8, 2011, was issued from the Lederer Personal Account, made payable to Speedway Classic Cars in the amount of $35,168.50, and endorsed by Susan Lederer. The memo section of this check contains the notation, “Cobra Engine Invoice 834.”

203. Check number 3365, dated March 16, 2011, was issued from the Lederer Personal Account, made payable to Speedway Classic Cars in the amount of 16,605.37, and endorsed by Susan Lederer. The memo section of this check contains the notation, “Invoice 844.” A review of relevant records reflects that Invoice 844 was sent to “Susie Lederer,” and contains a breakdown of charges related to the 1965 Shelby.

Bitar Real Property Acquired With Proceeds Traceable to His Unlawful Activity

A. 1506 Forest Oaks Drive, Glendora, California

204. A review of real property and banking records reflects that on or about April 19, 2010, Raymond Bitar ordered that a wire transfer of $566,388.36 be made from Pocket Kings, Ltd., to Master’s Realty Services, Inc. d/b/a Premier Service Escrow, as escrow for the purchase of the real property known as 1506 Forest Oaks Drive, Glendora, California 91741 (California APN: 8659-001-006) (the “Forest Oaks Property”).

205. Title company records reflect that Raymond J. Bitar obtained title to the Forest Oaks Property on or about April 22, 2010, for the purchase price of $538,500.

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B.

206. indicates that

752 Rainbow Drive, Glendora, California

A review of real property and banking records

on or about December 21, 2007, Richard Bitar, brother of defendant Raymond Bitar, purchased the real property located at 752 Rainbow Drive, Glendora, California, 91741, Assessor’s Parcel No. 8636-033-030 (the “Rainbow Drive Property”), more particularly described as: THE NORTH 85 FEET OF LOT 6, TRACT NO. 21938, IN THE CITY OF GLENDORA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 575, PAGES 45 AND 46 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

207. On or about December 31, 2007, defendant Raymond Bitar ordered a wire transfer to LandAmerica Southland Title Loan, Payoff Department, re: Escrow #004088-60, from his Comerica Bank account number 121137522, in the amount of $549,197.57, for payment on the Rainbow Drive Property sold to Richard Bitar.

208. On or about July 25, 2008, Richard Bitar transferred the Rainbow Drive Property to defendant Raymond Bitar by Quitclaim Deed. A handwritten notation on the Quitclaim Deed states, “This is a bonafide gift and the grantor received nothing

in return, R&T

C.

11911.”

Sierra Corner Construction Loan

209. liability company organized under the laws of the State of

Sierra Corner LLC (“Sierra Corner”) is a limited

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California. At the time of its organization, the sole shareholder of Sierra Corner was Joseph Bashoura.

210. On or about August 28, 2009, Sierra Corner purchased real property situated in the city of Fontana, County of San Bernardino, California, comprised of approximately 2.5 acres of land located at the corner of Sierra Avenue and Slover Avenue (the “Sierra Corner Property”).

211. On or about September 1, 2009, the operating agreement of Sierra Corner was amended to include Raymond Bitar as a member of the LLC, with a fifty-percent share of profit, loss and capital ownership.

212. Also in or about September 2009, Bitar wired approximately $900,000 to Sierra Corner, LLC.

213. In or about October 2009, Bitar entered into a construction loan agreement (the “Loan”) with Sierra Corner LLC, pursuant to which Bitar loaned Sierra Corner $2,600,000 for the construction of a gas station on the Sierra Corner Property.

214. The Loan was evidenced by a promissory note (the “Note”) secured by a construction deed of trust in the amount of $2,600,000.

215. On or about December 28, 2009, Sierra Corner executed a Deed of Trust and Assignment of Rents, which created a trust for the real property owned by Sierra Corner (the “Trust”), and assigned all rents, issues and profits to Raymond Bitar, who was named the Beneficiary of the Trust.

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216. Between approximately October 14, 2009, and December 13, 2010, Bitar loaned Sierra Corner approximately $2,900,000, by wiring funds from account number 8000801483 held at Comerica Bank, Dallas, TX, in the name of Raymond Bitar (the “1483 Account”) to an account held by Sierra Corner. The 1483 Account was included in the Post-Indictment Restraining Order, entered on April 18, 2011, in the criminal matter related to Bitar’s offenses, as an account that contained proceeds of Bitar’s illegal gambling activity.

217. Between approximately December 31, 2010 and October 4, 2011, Bitar received at least $201,219 in interest payments due under the Loan.

PROBABLE CAUSE FOR FORFEITURE

218. In sum, there is probable cause to believe that the Defendant Properties2 constitute, or are traceable to, (a) property used in illegal gambling businesses, in violation of Title 18, United States Code, Section 1955, (b) the proceeds of illegal gambling businesses operated in violation of Title 18, United States Code, Section 1955; (c) the proceeds of violations of Title 18, United States Code, Section 1952, (d) the proceeds of

2 Specifically, the Absolute Poker Properties, as set forth in Schedule A, incorporated by reference herein; the Remaining Processor Properties, as set forth in Schedule B, incorporated by reference herein; the LST Funds; Full Tilt Substitute Res Funds, the FTP Insider Accounts as set forth in Schedule C, incorporated by reference herein; and the FTP Insider Properties, as set forth in Schedule D, incorporated by reference herein.

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wire fraud and bank fraud and a conspiracy to commit wire fraud and bank fraud, in violation of Title 18, United States Code, Sections 1343, 1344, and 1349; and (e) property involved in various money laundering offenses as set forth below. The Full Tilt Poker Substitute Res Funds, the FTP Insider Accounts, and the FTP Insider Properties also constitute the proceeds of wire fraud and a conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349. Accordingly, the Defendant Properties are subject to forfeiture to the United States of America pursuant to Title 18, United States Code, Sections 981(a)(1)(A), 981(a)(1)(C), and 1955(d).

VII. CLAIMS FOR FORFEITURE FIRST CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. §§ 1955(d) and 981(a)(1)(C) – Illegal Gambling

219. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

220. Pursuant to 18 U.S.C. § 1955(d), “Any property, including money, used in [an illegal gambling business] may be seized and forfeited to the United States.”

221. The Poker Companies were illegal gambling businesses. The Poker Companies each (1) engaged in, facilitated, and offered online poker for real money play in violation of New York State Penal Law Sections 225.00 and 225.05 and the laws of other states in which the Poker Companies operated, including but

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not limited to, California, Connecticut, Florida, Michigan, Nevada, Ohio, Oregon, and Utah;3 (2) involved five or more persons conducting, financing, managing, supervising, directing or owning all or part of each Poker Company; and (3) had been and had remained in substantially continuous operation for a period in excess of thirty days and had gross revenues of $2,000 in a single day. The Poker Companies, as entities, and the Poker Company Properties were used in violation of Title 18, United States Code, Section 1955.

222. Additionally, Title 18, United States Code, Section 981(a)(1)(C) subjects to forfeiture:

Any property, real or personal, which constitutes or is derived from proceeds traceable to a violation of section . . . 1344 of this title or any offense constituting ‘specified unlawful activity’ (as defined in section 1956(c)(7) of this title), or a conspiracy to commit such offense.

223. Title 18, United States Code, Section 1956(c)(7) defines the term “specified unlawful activity” to mean, in relevant part, “any act or activity constituting an offense listed in section 1961(1) of this title. . . .” Among the specified unlawful activity set forth in 18 U.S.C. § 1961(1) is 18 U.S.C. § 1955.

3 See Cal. Pen. Code § 337j; Conn. Gen. Stat. § 53-278a, 53- 278b; Florida Sta. Ch. 849-08; Mich. Comp. Laws 750.313; Nevada Rev. Stat. 463.0152, 465.092, 465.093; Ohio Rev. Code § 2915.01; Oregon Rev. Stat. § 167.117; Utah Stat. § 76-10-1101, 76-10-1102, 76-10-1104.

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224. The Defendant Properties are subject to forfeiture pursuant to 18 U.S.C. § 1955(d) because they were property used in violation of the provisions of 18 U.S.C. § 1955, or property traceable to such property.

225. The Defendant Properties are also subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C) as property constituting, or derived from, proceeds of conducting illegal gambling businesses.

SECOND CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. §§ 1952 and 981(a)(1)(C) – Travel Act Offenses

226. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

227. Title 18, United States Code, Section 981(a)(1)(C) subjects to forfeiture:

Any property, real or personal, which constitutes or is derived from proceeds traceable to a violation of section . . . 1344 of this title or any offense constituting ‘specified unlawful activity’ (as defined in section 1956(c)(7) of this title), or a conspiracy to commit such offense.

228. Title 18, United States Code, Section 1956(c)(7) defines the term “specified unlawful activity” to mean, in relevant part, “any act or activity constituting an offense listed in section 1961(1) of this title. . . .” Among the specified unlawful activity set forth in 18 U.S.C. § 1961(1) is 18 U.S.C. § 1952.

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229. Title 18, United States Code, Section 1952(a) prohibits, inter alia, any entity who uses “any facility in interstate or foreign commerce,” who:

with the intent to –

(1) distribute the proceeds of any unlawful activity; or []

(3) otherwise promote, manage, establish, carry on, or facilitate the promotion, management, establishment, or carrying on, of any unlawful activity”

from thereafter performing or attempting to perform the conduct set forth subparagraphs (1) and (3) above.

230. Section 1952(b) specifically includes within the definition of “unlawful activity” “any business enterprise involving gambling . . . in violation of the laws of the State in which they are committed.”

231. The Poker Companies and Poker Processors, along with others, used facilities in interstate and foreign commerce, with the intent to both (1) distribute the proceeds of an unlawful activity, and (2) promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of unlawful activity; specifically, the promotion, operation, management, establishment, and carrying on of the Poker Companies, business enterprises that involved the offering of online poker for real money play in violation of New York State Penal Law Sections 225.00 and 225.05 and the laws of other states in which the Poker Companies operated, including but not limited to California, Connecticut, Florida, Michigan, Nevada, Ohio, Oregon,

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and Utah,4 and the distribution of proceeds from the Poker Companies.

232. The Defendant Properties are therefore subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C) as property constituting, or derived from, proceeds of violations of Section 1952.

 

THIRD CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(C) – Bank and Wire Fraud

233. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

234. Title 18, United States Code, Section 981(a)(1)(C) subjects to forfeiture:

Any property, real or personal, which constitutes or is derived from proceeds traceable to a violation of section . . . 1344 of this title or any offense constituting ‘specified unlawful activity’ (as defined in section 1956(c)(7) of this title), or a conspiracy to commit such offense.

235. Title 18, United States Code, Section 1956(c)(7) defines the term “specified unlawful activity” to mean, in relevant part, “any act or activity constituting an offense listed in section 1961(1) of this title. . . .” Among the specified unlawful activity set forth in 18 U.S.C. § 1961(1) are 18 U.S.C. §

4 See Cal. Pen. Code § 337j; Conn. Gen. Stat. § 53-278a, 53- 278b; Florida Sta. Ch. 849-08; Mich. Comp. Laws 750.313; Nevada Rev. Stat. 463.0152, 465.092, 465.093; Ohio Rev. Code § 2915.01; Oregon Rev. Stat. § 167.117; Utah Stat. § 76-10-1101, 76-10-1102, 76-10-1104.

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1343 (relating to wire fraud) and 18 U.S.C. § 1344 (relating to financial institution fraud).

236. Title 18, United States Code, Section 1343, provides that:

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire . . . in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice

shall be guilty of a crime.

237. Title 18, United States Code, Section 1344 provides in relevant part that:

Whoever knowingly executes, or attempts to execute, a scheme or artifice–

(1) to defraud a financial institution; or

(2) to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises;

shall be guilty of a crime.

238. Title 18, United States Code, Section 1349, provides that:

Any person who attempts or conspires to commit any offense under this chapter [including Sections 1343 and 1344] shall be subject to the same penalties as those prescribed for the offense, the commission of which was the object of the attempt or conspiracy.

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239. The Poker Companies, Poker Processors, and others, conspiring with one another,

A. did execute and attempt to execute a scheme and artifice to defraud financial institutions, the deposits of which were insured by the Federal Deposit Insurance Corporation, and to obtain monies, funds, credits, assets, securities, and other property owned by and under the custody and control of that financial institution by means of false and fraudulent pretenses, representations, and promises, in violation of Title 18, United States Code, Section 1344; and

B.  having devised and intending to devise a scheme and artifice to defraud, and for obtaining money and

property by means of false and fraudulent pretenses, representations, and promises, would and did transmit and cause to be transmitted by means of wire, radio, and televison communication in interstate and foreign commerce, writings, signs, signals, pictures, and sounds for the purpose of executing such scheme and artifice, in violation of Title 18, United States Code, Section 1343, to wit, the Poker Companies, Poker Processors, and others, participated in a scheme involving wire communications to deceive financial institutions and other financial intermediaries into processing and authorizing payments to and from Full Tilt Poker, Pokerstars and Absolute Poker and United States gamblers by disguising the transactions to create the false appearance that they were unrelated to gambling, and thereby to obtain money of,

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or under the custody and control of, those financial institutions and intermediaries.

240. By reason of the above, the Defendant Properties are subject to forfeiture to the United States of America pursuant to 18 U.S.C. §§ 981, 1343, 1344 and 1349.

FOURTH CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(C) – Wire Fraud

241. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

242. Title 18, United States Code, Section 981(a)(1)(C) subjects to forfeiture:

Any property, real or personal, which constitutes or is derived from proceeds traceable to a violation of section . . . 1344 of this title or any offense constituting ‘specified unlawful activity’ (as defined in section 1956(c)(7) of this title), or a conspiracy to commit such offense.

243. Title 18, United States Code, Section 1956(c)(7) defines the term “specified unlawful activity” to mean, in relevant part, “any act or activity constituting an offense listed in section 1961(1) of this title. . . .” Among the specified unlawful activity set forth in 18 U.S.C. § 1961(1) is 18 U.S.C. § 1343 (relating to wire fraud).

244. Title 18, United States Code, Section 1343, provides that:

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Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire . . . in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice

shall be guilty of a crime. 245. Title 18, United States Code, Section 1349, provides that:

Any person who attempts or conspires to commit any offense under this chapter [including Section 1343] shall be subject to the same penalties as those prescribed for the offense, the commission of which was the object of the attempt or conspiracy.

246. From at least in or about 2008 up through and

including having devised and intending to devise a scheme and artifice to defraud, and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises, to wit, the making of false representations to potential customers regarding the security of funds deposited with Full Tilt Poker in order to induce customers to entrust funds with the company, would and did transmit and cause to be transmitted by means of wire, radio, and televison communication in interstate and foreign commerce, writings, signs, signals, pictures, and sounds for the

in or about June 29, 2011, Full Tilt Poker and others,

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purpose of executing such scheme and artifice, in violation of Title 18, United States Code, Section 1343.

247. By reason of the above, the Full Tilt Substitute Res Funds, the FTP Insider Accounts, and the FTP Insider Properties are subject to forfeiture to the United States of America pursuant to 18 U.S.C. §§ 981, 1343, and 1349.

FIFTH CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(A) - Promotional Money Laundering and Conspiracy

248. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

249. Pursuant to 18 U.S.C. § 981(a)(1)(A), “[a]ny property, real or personal, involved in a transaction in violation of section 1956 [or] 1957 . . . of [Title 18, relating to money laundering offenses], or any property traceable to such property,” is subject to forfeiture.

250. Pursuant to Title 18, United States Code, Section 1956, commonly known as the “money laundering” statute, a crime is

committed

by a person who:

(a)(1) . . . knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity –

(A)(i) with the intent to promote the carrying on of specified unlawful activity . . .

shall be guilty of a crime.

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251. Title 18, United States Code, Section 1956(h) further provides that “[a]ny person who conspires to commit any offense defined in this section or section 1957 shall be subject to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.”

252. The Defendant Properties are subject to forfeiture pursuant to Title 18, United States Code, Section 981(a)(1)(A) as they constitute property involved in, or property traceable to such property, financial transactions involving the proceeds of specified unlawful activity, namely the illegal conduct set forth in Claims One through Three above, with such transactions intended to promote such specified unlawful activity and carried out with knowledge that the property represented the proceeds of illegal activity, and a conspiracy to undertake such transactions. These transactions included, but are not limited to (1) the transfer of funds from the overseas accounts controlled by the Poker Companies to Poker Processor accounts in the United States; (2) the transfer of funds from Poker Processors to players; and (3) the transmission and transfers of payments to, inter alia, the FTP Insiders. The Poker Companies, as entities, were involved in and facilitated these transactions.

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SIXTH CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(A) - Concealment Money Laundering and Conspiracy

253. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

254. Pursuant to 18 U.S.C. § 981(a)(1)(A), “[a]ny property, real or personal, involved in a transaction in violation of section 1956 [or] 1957 . . . of [Title 18, relating to money laundering offenses], or any property traceable to such property,” is subject to forfeiture.

255. Pursuant to Title 18, United States Code, Section 1956, commonly known as the “money laundering” statute, a crime is

committed

by a person who:

(a)(1) . . . knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity – .. .

(B) knowing that the transaction is designed in whole or in part –

(i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity . . .

shall be guilty of a crime. 256. Title 18, United States Code, Section 1956(h)

further provides that “[a]ny person who conspires to commit any offense defined in this section or section 1957 shall be subject

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to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.”

257. The Defendant Properties are subject to forfeiture pursuant to Title 18, United States Code, Section 981(a)(1)(A) as they constitute property involved in, or property traceable to such property, financial transactions involving the proceeds of specified unlawful activity, namely the illegal conduct set forth in Claims One through Three above, with these transactions having been designed in whole and in part to conceal and disguise the nature, source, ownership, and control of these funds, and a conspiracy to undertake such transactions. These transactions included, but are not limited to, the transfer of funds from the overseas accounts controlled by the Poker Companies to Poker Processor accounts in the United States, and the transfer of funds from Poker Processors to players. The Poker Companies, as entities, were involved in and facilitated these transactions.

SEVENTH CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(A) - International Money Laundering and Conspiracy

258. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

259. Pursuant to 18 U.S.C. § 981(a)(1)(A), “[a]ny property, real or personal, involved in a transaction in violation of section 1956 [or] 1957 . . . of [Title 18, relating to money

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laundering offenses], or any property traceable to such property,” is subject to forfeiture.

260. Pursuant to Title 18, United States Code, Section 1956, a crime is committed by a person who:

(a)(2) . . . transports, transmits, or transfers, or attempts to transport, transmit, or transfer a monetary instrument or funds from a place in the United States to or through a place outside the United States or to a place in the United States from or through a place outside the United States –

(A) with the intent to promote the carrying on of specified unlawful activity . . . .

shall be guilty of a crime. 261. Title 18, United States Code, Section 1956(h)

further provides that “[a]ny person who conspires to commit any offense defined in this section or section 1957 shall be subject to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.”

262. The Defendant Properties are subject to forfeiture pursuant to Title 18, United States Code, Section 981(a)(1)(A) as they constitute property involved in, or property traceable to such property, transfers and the transmission of monetary instruments and funds (1) from inside the United States to outside the United States and (2) from outside the United States to inside the United States with these transfers and transmission having been intended to promote specified unlawful activity, namely the illegal conduct set forth in Claims One through Three above, and a

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conspiracy to undertake such transfers. These transactions included, but are not limited to, (1) the transfer of funds from players to Poker Processor accounts and the subsequent transfer of these funds to the overseas accounts controlled by the Poker Companies; (2) the transfer of funds from the overseas accounts controlled by the Poker Companies to Poker Processor accounts in the United States, and the subsequent transfer of funds from Poker Processors to players; and (3) the transfer and transmission of payments to, inter alia, the FTP Insiders. The Poker Companies, as entities, were involved in and facilitated these transactions.

EIGHTH CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(A) - Bulk Money Laundering and Conspiracy

263. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

264. Pursuant to 18 U.S.C. § 981(a)(1)(A), “[a]ny property, real or personal, involved in a transaction in violation of section 1956 [or] 1957 . . . of [Title 18, relating to money laundering offenses], or any property traceable to such property,” is subject to forfeiture.

265. Title 18, United States Code, Section 1957 provides that: “Whoever, [with such offense under this section taking place in the United States] knowingly engages or attempts to engage in a monetary transaction in criminally derived property of

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a value greater than $10,000 and is unlawful activity,” shall guilty of

derived from specified

a crime. 266. Title 18, United States Code, Section 1956(h)

further provides that “[a]ny person who conspires to commit any offense defined in this section or section 1957 shall be subject to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.”

267. The Defendant Properties are subject to forfeiture pursuant to Title 18, United States Code, Section 981(a)(1)(A) as property involved in, or property traceable to such property, monetary transactions in criminally derived property of a value greater than $10,000 that was derived from specified unlawful activity, namely the illegal conduct set forth in Claims One through Three above, and a conspiracy to engage in such transactions. These transactions included, but are not limited to (1) the transfer of funds from the overseas accounts controlled by the Poker Companies to Poker Processor accounts in the United States, and the transfer of funds from Poker Processors to players; and (2) the transfer and transmission of dividend payments to, inter alia, the FTP Insiders. The Poker Companies, as entities, were involved in and facilitated these transactions.

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NINTH CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(A) - Promotional Money Laundering and Conspiracy Relating

to Full Tilt Fraud Against Players

268. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

269. Pursuant to 18 U.S.C. § 981(a)(1)(A), “[a]ny property, real or personal, involved in a transaction in violation of section 1956 [or] 1957 . . . of [Title 18, relating to money laundering offenses], or any property traceable to such property,” is subject to forfeiture.

270. Pursuant to Title 18, United States Code, Section 1956, commonly known as the “money laundering” statute, a crime is

committed

by a person who:

(a)(1) . . . knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity –

(A)(i) with the intent to promote the carrying on of specified unlawful activity . . .

shall be guilty of a crime. 271. Title 18, United States Code, Section 1956(h)

further provides that “[a]ny person who conspires to commit any offense defined in this section or section 1957 shall be subject to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.”

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272. The Full Tilt Substitute Res Funds, the FTP Insider Accounts, and the FTP Insider Properties are also separately subject to forfeiture pursuant to Title 18, United States Code, Section 981(a)(1)(A) as they constitute property involved in, or property traceable to such property, financial transactions involving the proceeds of specified unlawful activity, namely the illegal conduct set forth in Claim Four above, with such transactions intended to promote such specified unlawful activity and carried out with knowledge that the property represented the proceeds of illegal activity, and a conspiracy to undertake such transactions. These transactions included, but are not limited to, (1) the transfer of funds from the overseas accounts controlled by Full Tilt Poker to Poker Processor accounts in the United States, and the subsequent transfer of those funds to players; and (2) the transfer and transmission of payments to, inter alia, the FTP Insiders. Full Tilt Poker, as an entity, was involved in and facilitated these transactions.

TENTH CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(A) - Concealment Money Laundering and Conspiracy Relating

to Full Tilt Fraud Against Players

273. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

274. Pursuant to 18 U.S.C. § 981(a)(1)(A), “[a]ny property, real or personal, involved in a transaction in violation of section 1956 [or] 1957 . . . of [Title 18, relating to money

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laundering offenses], or any property traceable to such property,” is subject to forfeiture.

275. Pursuant to Title 18, United States Code, Section 1956, commonly known as the “money laundering” statute, a crime is

committed

by a person who:

(a)(1) . . . knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity – .. .

(B) knowing that the transaction is designed in whole or in part –

(i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity . . .

shall be guilty of a crime. 276. Title 18, United States Code, Section 1956(h)

further provides that “[a]ny person who conspires to commit any offense defined in this section or section 1957 shall be subject to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.”

277. The Full Tilt Substitute Res Funds, the FTP Insider Accounts, and the FTP Insider Properties are also separately subject to forfeiture pursuant to pursuant to Title 18, United States Code, Section 981(a)(1)(A) as they constitute property involved in, or property traceable to such property, financial transactions involving the proceeds of specified unlawful

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activity, namely the illegal conduct set forth in Claim Four above, with these transactions having been designed in whole and in part to conceal and disguise the nature, source, ownership, and control of these funds, and a conspiracy to undertake such transactions. These transactions included, but are not limited to, the transfer of funds from the overseas accounts controlled by Full Tilt Poker to Poker Processor accounts in the United States, and the subsequent transfer of those funds to players. Full Tilt Poker, as an entity, was involved in and facilitated these transactions.

ELEVENTH CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(A) - International Money Laundering and Conspiracy Relating

to Full Tilt Fraud Against Players

278. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

279. Pursuant to 18 U.S.C. § 981(a)(1)(A), “[a]ny property, real or personal, involved in a transaction in violation of section 1956 [or] 1957 . . . of [Title 18, relating to money laundering offenses], or any property traceable to such property,” is subject to forfeiture.

280. Pursuant to Title 18, United States Code, Section 1956, a crime is committed by a person who:

(a)(2) . . . transports, transmits, or transfers, or attempts to transport, transmit, or transfer a monetary instrument or funds from a place in the United States to or through a place outside the United States or

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to a place in the United States from or through a place outside the United States –

(A) with the intent to promote the carrying on of specified unlawful activity . . . .

shall be guilty of a crime. 281. Title 18, United States Code, Section 1956(h)

further provides that “[a]ny person who conspires to commit any offense defined in this section or section 1957 shall be subject to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.”

282. The Full Tilt Substitute Res Funds, the FTP Insider Accounts, and the FTP Insider Properties are also separately subject to forfeiture pursuant to pursuant to Title 18, United States Code, Section 981(a)(1)(A) as they constitute property involved in, or property traceable to such property, transfers and the transmission of monetary instruments and funds (1) from inside the United States to outside the United States and (2) from outside the United States to inside the United States with these transfers and transmission having been intended to promote specified unlawful activity, namely the illegal conduct set forth in Claim Four above, and a conspiracy to undertake such transfers. These transactions included, but are not limited to, (1) the transfer of funds from players to Poker Processor accounts and the subsequent transfer of these funds to the overseas accounts controlled by Full Tilt Poker; (2) the transfer of funds from the

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overseas accounts controlled by Full Tilt Poker to Poker Processor accounts in the United States, and the subsequent transfer of those funds to players; and (3) the transfer and transmission of payments to, inter alia, the FTP Insiders. Full Tilt Poker, as an entity, was involved in and facilitated these transactions.

TWELFTH CLAIM FOR RELIEF

Forfeiture Under 18 U.S.C. § 981(a)(1)(A) - Bulk Money Laundering and Conspiracy Relating

to Full Tilt Fraud Against Players

283. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

284. Pursuant to 18 U.S.C. § 981(a)(1)(A), “[a]ny property, real or personal, involved in a transaction in violation of section 1956 [or] 1957 . . . of [Title 18, relating to money laundering offenses], or any property traceable to such property,” is subject to forfeiture.

285. Title 18, United States Code, Section 1957 provides that: “Whoever, [with such offense under this section taking place in the United States] knowingly engages or attempts to engage in a monetary transaction in criminally derived property of a value greater than $10,000 and is derived from specified unlawful activity,” shall guilty of a crime.

286. Title 18, United States Code, Section 1956(h) further provides that “[a]ny person who conspires to commit any offense defined in this section or section 1957 shall be subject

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to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.”

287. The Full Tilt Substitute Res Funds, the FTP Insider Accounts, and the FTP Insider Properties are also separately subject to forfeiture pursuant to Title 18, United States Code, Section 981(a)(1)(A) as property involved in, or property traceable to such property, monetary transactions in criminally derived property of a value greater than $10,000 that was derived from specified unlawful activity, namely the illegal conduct set forth in Claim Four, and a conspiracy to engage in such transactions. These transactions included, but are not limited to (1) the transfer of funds from the overseas accounts controlled by Full Tilt Poker to Poker Processor accounts in the United States, and the subsequent transfer of those funds to players and (2) the transfer and transmission of payments to, inter alia, the FTP Insiders. Full Tilt Poker, as an entity, was involved in and facilitated these transactions.

VIII. CIVIL MONEY LAUNDERING PENALTIES 18 U.S.C. § 1956

288. Paragraphs 1 through 218 of this Complaint are repeated and realleged as if fully set forth herein.

289. Pursuant to Title 18, United States Code, Section 1956(b), “[w]hoever conducts or attempts to conduct a transaction described in subsection (a)(1) or (a)(3), or section 1957, or a transportation, transmission, or transfer described in subsection

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(a)(2), is liable to the United States for a civil penalty of not more than the greater of — (A) the value of the property, funds, or monetary instruments involved in the transaction; or (B) $10,000.”

290. The Absolute Poker Company Defendants, who knowingly conducted the money laundering offenses set forth in Claims Five through Eight, knowing in regard to Claim Five, Claim Six, and Claim Eight, that such payments constituted criminally derived property, including from the illegal activity set forth in Claims One Through Three of this Complaint, are liable to the Government for $500 million, a sum of money representing the amount of property, funds, or monetary instruments involved in those offenses.

291. Additionally, the FTP Insider Defendants knowingly conducted transactions in violation of Title 18, United States Code, Section 1956(a)(1) and Section 1957 as set forth in Claim Five and Claim Eight, and transfers in violation of Title 18, United States Code, Section 1956(a)(2), as set forth in Claim Seven, through their authorization and receipt of payments of a value greater than $10,000 from Full Tilt Poker, knowing, and being willfully blind to the fact, that in regard to Claim Five and Claim Eight, such payments constituted criminally derived property, including from the illegal activity set forth in Claims One Through Three of this Complaint, are liable to the Government for a sum of money in an amount that is not less than $40.8

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million for Bitar; $42.5 million for Lederer; $42 million for Ferguson; and $11.7 million for Furst.

292. Defendant Bitar is also independently liable for such penalty because he knowingly conducted transactions in violation of Title 18, United States Code, Section 1956(a)(1) and Section 1957 as set forth in Claim Nine and Claim Twelve, and transfers in violation of Title 18, United States Code, Section 1956(a)(2), as set forth in Claim Eleven, through his authorization and receipt of dividend payments of a value greater than $10,000 from Full Tilt Poker, knowing that in regard to Claim Nine and Claim Twelve, such payments also constituted criminally derived property, including from the illegal activity set forth in Claim Four.

WHEREFORE plaintiff, the United States of America,

prays:

A.  That process issue to enforce the forfeiture of the Defendant Properties and that all persons having an interest in the Defendant Properties be cited to appear and show cause why the forfeiture should not be decreed, and that this Court decree forfeiture of the Defendant Properties to the United States of America for disposition according to the law;

B.  That a money judgment be entered against the Absolute Poker/Ultimate Bet Entities in an amount not less than $500 million;

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C.  That a money judgment be entered against Raymond Bitar in an amount not less than $40.8 million;

D.  That a money judgment be entered against Howard Lederer in an amount not less than $42.5 million;

E.  That a money judgment be entered against Christopher Ferguson in an amount not less than $42 million;

F.  That a money judgment be entered against Rafael Furst in an amount not less than $11.7 million; and

G.  That this Court grant Plaintiff such further relief as this court may deem just and proper, together with the costs and disbursements of this action.

Dated: September 10, 2012 New York, New York

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