Internet gambling sites owners charged with fraud

The owners of three of the largest Internet poker companies operating in the United States were accused on Friday of tricking regulators and banks into processing billions of dollars of illegal Internet gambling proceeds.Eleven people, including the owners of Full Tilt Poker, Absolute Poker and PokerStars, were charged with violating U.S. anti-Internet gambling laws, according to charges filed by federal prosecutors in Manhattan.

Prosecutors also filed civil money laundering charges seeking to recover at least $3 billion from the companies, which are all based overseas, court documents said.

The Internet domain names of the companies were also seized. Representatives for the companies could not immediately be reached trick cards to comment on the charges.


Two of the men were arrested on Friday, one is expected to turn himself in to law enforcement and eight others are not currently in the United States, prosecutors said.

Raymond Bitar, 39, of Full Tilt Poker and Isai Scheinberg, 64, of PokerStars were charged with violating the Unlawful Internet Gambling Enforcement Act and other laws. Absolute Poker owners Brent Beckley, 31, and Scott Tom, 31, faced similar charges.

The criminal charges outlined a scheme by the company owners and some of their employees to direct the gambling profits to online shell companies that would appear legitimate to banks processing payments.

The charges are part of a crackdown on Internet gambling in the United States, where it has been illegal since 2006.

In March, Wynn Resorts Ltd said it had entered into a partnership with PokerStars, and that they would work for passage of U.S. legislation on Internet poker.

U.S. lawmakers have in the past tried marked cards lenses to pass legislation legalizing Internet gambling in the hope of reaping billions in tax revenue.


(Reporting by Basil Katz; Editing by Steve Orlofsky) - (REUTERS)

PokerStars and Full Tilt Poker have pulled out of the U.S. market. Friday, the Manhattan U.S. Attorney charged the principals of three of on-line poker's largest sites with bank fraud, illegal gambling and laundering billions of dollars. In all, 11 defendants were charged, together with PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Nelson Burtnick and Absolute Poker's Scott Tom. The Web domain names utilized by PokerStars, Full Tilt, Absolute Poker and Final Bet had been seized and now redirect to a message from the U.S. Department of Justice and the FBI. In response, PokerStars issued an announcement by a pop-up on its poker shopper saying it has suspended real-money play in the United States.

The assertion goes on to say the PokerStars web site has been moved pokerstars.eu.
Full Tilt Poker additionally released an announcement saying it helps poker gamers and Bitar, the company's chief executive, but has been compelled to drag out of the U.S. market. The statemet goes on to say Full Tilt Poker has decided to suspend real-cash play in the United States until the case is resolved, however will continue to provide its companies outdoors of the United States. At press time, no public feedback have been made by principals at Absolute Poker, Final Guess or the Cereus Poker Network.