..

FBI Agent Tied to Leak of Billy Walters Probe Did Same With Platinum Partners

Written by:
Guest
Published on:
Mar/28/2017

(Reuters) - A lawyer defending Platinum Partners founder Mark Nordlicht against fraud charges said on Monday an FBI agent who admitted to leaking to the press on an insider trading probe of sports gambler William "Billy" Walters may also have leaked about Platinum.

<p><a href="http://www.aceperhead.com/?CMPID=RzkxMQ%3D%3D" target="_blank"><img alt="" src="http://www.gambling911.com/files/images/AcePerHeadLong.gif" style="width: 728px; height: 90px;" /></a></p>

At a hearing in Brooklyn federal court before U.S. District Judge Dora Irizarry, lawyer William Burck said he planned to file a motion related to the leaks, in which he may seek to dismiss the charges against Nordlicht.

Burck said leaks could have contributed to the decline of Platinum's value, which is a key part of the prosecutors' case.

U.S. prosecutors in December charged Nordlicht and six other executives at the hedge fund management firm with running a $1 billion "Ponzi-like" fraud in which they overvalued assets and selectively paid some investors ahead of others. All have pleaded not guilty.

Platinum was known for producing exceptionally high returns - about 17 percent annually in its largest fund. Platinum and its executives are also facing civil fraud charges from the U.S. Securities and Exchange Commission, and Platinum's funds have been placed under the control of a court-appointed receiver.

At Monday's hearing, Burck did not provide specifics about the alleged leaks or name the FBI agent, though the agent has been identified in connection with Walters' case as David Chaves.

One of the prosecutors at the hearing, Assistant U.S. Attorney Alicyn Cooley, said the government was taking Burck's leak claims seriously and investigating them.

Prosecutors are investigating Chaves in connection with the leaks in the Walters' case. Sean Casey, a lawyer for Chaves, declined to comment on Burck's claims.

A representative of the Federal Bureau of Investigation also could not immediately be reached.

Walters, who is currently on trial in Manhattan federal court, sought unsuccessfully to have the charges against him dismissed because of Chaves' leaks.

Chaves is also among several FBI agents being sued by hedge fund founder David Ganek, who claims the agency lied in obtaining a search warrant against him in 2010. Ganek's fund, Level Global, shut down soon after being raided by the FBI in an insider trading investigation. Ganek was never charged.

The 2nd U.S. Circuit Court of Appeals heard arguments last week over whether to dismiss that case.

 

The case is U.S. v. Nordlicht et al, U.S. District Court, Eastern District of New York, No. 16-cr-640.

Gambling News

How a Pandemic Changed the US Gambling Market

The COVID-19 pandemic has disrupted nearly every aspect of human life all around the world, and it was not surprising that the gambling industry was not spared. It goes without saying that the activity is enjoyed by millions of people all around the world and since it heavily relies on social interactions to a given extent, the lockdowns and social distancing measures would make it much harder for everything to proceed normally. 

A Guide to Online Casinos in Thailand

A Guide to Online Casinos in Thailand

Looking for some gambling action in Thailand? It’s good to understand that local laws don’t allow gambling activities except in horse racing and the national lottery. It’s against this backdrop that the online casino industry has continued to grow. The laws don’t mention online gambling, and this makes it safer to play online.

NJ Sets US Sports Betting Record at $668 Million

NJ Sets US Sports Betting Record at $668 Million

New Jersey gamblers set a nationwide record for the most money bet on sports in a single month, plunking down almost $668 million in August on events including resurgent baseball, basketball and hockey seasons that had been interrupted by the coronavirus outbreak, figures released Monday showed.

How Blockchain Technology is Changing the Online Gambling Industry

How Blockchain Technology is Changing the Online Gambling Industry

The introduction of internet usage in the gambling industry was a game-changer. Casino owners took advantage and seamlessly integrated the latest technology to improve the user experience. Gamers, on the other hand, enjoyed the freedom and the versatility brought about by internet usage in the industry. They could now engage in any sport and play from casinos of their liking as long as they had an internet connection.

Is Bovada Legal to Bet on From Virginia?

Is Bovada Legal to Bet on From Virginia?

While Bovada is legal to bet on from the commonwealth of Virginia, BetOnline offers much better signup bonuses (max bonus $1000 compared to $250 for Bovada), better lines including a dime line up to -190 in Major League Baseball, and lightning fast payouts, not to mention they have the best credit card acceptance rate in the industry.  BetOnline accepts Mastercard, Visa, American Express and Discover cards. 

Syndicate