..

Today’s Full Tilt Poker BS or Not: We Weren’t Running a Ponzi Scheme

Written by:
Jagajeet Chiba
Published on:
Sep/27/2011
Full Tilt Poker

Even though the US Attorney’s Office out of the Southern District of New York has declared Full Tilt Poker a “ponzi scheme”, the powers-that-be at the now shuttered online poker company say otherwise, going as far as to issue a press release condemning the US Attorney’s accusations. 

In today’s installment of Full Tilt Poker BS or Not, Gambling911.com reviews their latest statement.  As Anderson Cooper of CNN would say, “We’re keeping them honest”.

On September 19, 2011, the Department of Justice issued a release stating that Full Tilt Poker was “A Global Ponzi Scheme.”  While the government has taken issue with the underlying activities of FTP, under any reasonable interpretation, there is no way to characterize the operation of Full Tilt Poker’s virtual online card room as a global Ponzi scheme.

A “Ponzi” scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi schemes do not involve any legitimate investment, but rather use the new investor funds to pay “dividends” to the initial investors.

Despite recent events, FTP remains committed to identifying a suitable investor and paying back its players in full.”

Well, this is a rare time where FTP is actually releasing a statement that does have some degree of legitimacy.  Gambling911.com already discussed the terminology and how it might not necessarily apply to Full Tilt Poker.

Next, they might want to define the words “Delinquency” and “NonPayment” and “Theft of Funds”. 

As PokerNewsReport noted:  “Industry observers have been quick to laugh off this latest “news” as a complete waste of time – commenting that it took the directors of Full Tilt Poker a week to look up what a “Ponzi Scheme” actually was!”

Joeliee Scott, a contributor to Forbes.com offered this assessment of the situation:

“Every industry has its own implicit “code” no matter whether you operate in technology, machinery, gambling or stocks (what’s the difference between these two, again?).  Hell, even organized crime families have a code.  And, by breaking the code, the executives of Full Tilt Poker (FTP), Raymond Bitar, Howard Lederer and Chris Ferguson, broke the trust of their community, not unlike Madoff.  That is not to say Jesus and the Professor (as Ferguson and Lederer are known) did orchestrate a “global Ponzi scheme” (as alleged by the Department of Justice), but they did defraud their customers and used customer monies for their own personal gain.”

- Jagajeet Chiba, Gambling911.com Editor-In-Chief

Poker News

Is stalling on the bubble really cheating?

Stalling on the Bubble Addressed by Tournament Directors Association

While some players believe it's a good strategy, others say it's akin to cheating.

Matt Savage Massive Pay Day Resididual for "Lucky You" Film Cameo Finally Arrives

Matt Savage Massive Pay Day Resididual for "Lucky You" Film Cameo Finally Arrives

You won't believe how much these Hollywood film cameos pay!!!

Poker Pro Kenna James Teams Up With Ape Poker

Poker Pro Kenna James Teams Up With Ape Poker

James, who got his Start dealing at Hollywood Park Casino in Los Angeles in 1996, has 20 poker titles under his belt already and is considered one of the top experts in the game.

Massive Cashout for Americas Cardroom Poker Pro Ebony Kenney: One of Largest for a Female Player Ever

Massive Cashout for Americas Cardroom Poker Pro Ebony Kenney: One of Largest for a Female Player Ever

Kenney won $1.7 Million in the Coin Rivet Invitational Poker Tournament and becomes one of the winningest women in poker.

The OSS CUB3D ENCORE $20 Million GTD to Take Place Sept.04th-26th

The OSS CUB3D ENCORE $20 Million GTD to Take Place Sept.04th-26th

Included is a $1 Million Main Event on Sunday, September 18th ($630 buy-in) and September 25th ($2,650 buy-in). There are also three big multi-flight tourneys.

Syndicate