SunFirst Bank Could Go Belly Up After Online Poker Indictments

Written by:
C Costigan
Published on:
Sep/01/2011
SunFirst Bank

SunFirst Bank, which is alleged to have processed online poker transactions and disguising them as dog food and golf ball purchases, appears to be on life support.

Executives of the bank were charged along side the co-founders of three online poker companies, including Full Tilt Poker, PokerStars and UB.com.

The FDIC ordered the St. George, Utah-based bank to take corrective action in order to raise needed capital or otherwise sell the bank.  The directive was issued July 28 but with a 30 day compliance period that has reached its deadline. 

SunFirst had $17,048,000 in total equity capital on June 30, representing a decline from the $23,645,000 in total equity capital recorded in June of 2010, according to the FDIC.
"They are facing the same troubles that all banks in the country are facing," said Tom Bay, supervisor of banks for the Utah Department of Financial Institutions. "The real estate downturn and the economic crisis have hurt the banking industry."

SunFirst was widely believed to have been in trouble at the time they forged a relationship with the three big US-facing online poker rooms.  In exchange for allowing the gambling transactions, the online poker companies are alleged to have invested in the financial institution.

Interestingly, the FDIC conducted an examination of the bank on April 11, just days before the indictments were handed down against Stars, Full Tilt and UB.com.

- Chris Costigan, Gambling911.com Publisher

Poker News

Negreanu and PokerStars Part Ways

Negreanu and PokerStars Part Ways

The biggest money earner in poker, Daniel Negreanu, has amicably split with PokerStars following 12 years as a sponsored pro.

Is PokerStars Legal in the State of Idaho?

Is PokerStars Legal in the State of Idaho?

PokerStars is not accessible in the state of Idaho, though it used to be.  The site now adheres to state interpretation that poker sites are not legally permitted to operate in Idaho.

Red Dead Online Poker Review - Access Issues

If any company is going to make a run at competing with the big name real money online poker sites like PokerStars, Americas Cardroom or 888, it would be an established gaming site the likes of Rock Star Games.  They recently incorporated poker into their Red Dead Online title, but - SURPRISE - most people can't play for real money.

Poker's Royal Wedding

Poker's Royal Wedding

Daniel Negreanu tied the knot with long time girlfriend Amanda Leatherman and the poker community celebrated along side them.

Daniel Negreanu Amanda Leatherman Marry

Daniel Negreanu Amanda Leatherman Marry

If there is such a thing as a poker royal wedding, this would be it.  Daniel Negrean and long time girlfriend Amanda Leatherman have tied the knot.

Syndicate