“Serious breaches in regulations”, are the outcome of deliberations from the Alderney gambling Control Commission (AGCC), regarding the suspension of online poker site – Full Tilt Poker (FTP) licenses – which took place on the 29th June 2011. A recent hearing was held in camera, in London, and this hearing itself was held over 6 days. Deliberations took over a week to come to light, and the dearth of class action lawsuits which are pending – must be absolutely delighted that FTP licenses have finally been revoked.
All three companies trading as Full Tilt Poker – that is – Oxalic Limited, Vantage Limited and Filco Limited, had their licenses to trade revoked, and a recent sub-division company had its license suspended pending further notice. This company, Orinic Limited, had not started trading, so, was apparently of no concern to the AGCC. However, they did find that the three previously mentioned companies were no longer “fit and proper persons” to operate an online poker site, pursuant to certain sections of the ordinances and due to their insolvency.
The hearing was held in London, and prior to its taking place, interested parties were completely dismayed about the fact that once again FTP lawyers had managed to have evidence heard in private. So, the fact that Full Tilt Poker was also found to have “fundamentally misled the AGCC” and that their operating integrity was questioned and found wanting, must have been very good news.
The AGCC had made public the fact that they were not happy about holding the hearing in private, as this was not to the benefit of the public or media; especially those members of the public who had lost funds in the fiasco. However, Full Tilt Poker continuously maintains that a public hearing would damage their chances of commercial rescue, which would be of benefit to their online poker members who had still not been able to recover funds. We maintained all along that FTP was attempting a ‘bluff’ on the AGCC, and this sadly seems to have been proven correct.
Of huge concern to the hearing was the fact that this online poker site had continually maintained their business was liquid, when in fact the complete opposite was the truth. Recent public allegations and addendums to original DoJ indictments have heard Preet Baharara – the US Attorneys office – refer to the company as a “global Ponzi scheme”. They allege that at the expense of members FTP, paid out millions to shareholders, and claim to have evidence proving this. In another recent move, there has also been seizure of banking records and accounts belonging to Howard Lederer, Chris Ferguson, Rafe Furst, and Ray Bitar amongst others. The AGCC also said that the FTP failure to report material events and continually mislead the AGCC, had weight heavily in their disfavour.
It is important here to mention, that all online poker sites are not cast in the same mould as Full Tilt Poker. PokerStars experienced the same US DoJ shut-down on Black Friday, and have continued to operate in an above-board manner, as well as repay member funds.
