Full Tilt Poker Tycoon Arrested
This was published 05-07-2012Just over a year after the Full Tilt internet address was seized and the business shut down, Ray Bitar, the gambling tycoon and chief executive of the Full Tilt group, who ran the second largest online poker site in the world, from servers inGuernsey, has surrendered to the FBI.
In April last year Full Tilt was charged with offering poker illegally in the US and it was later discovered that the group was running a Ponzi-style scheme with large amounts of money, which was meant to be in segregated players’ accounts, going missing.
Bitar was arrested when he landed at JFK airport a few days ago and now faces nine charges which include money laundering, bank fraud, wire fraud and running an illegal gambling business that resulted in Full Tilt being unable to pay approximately $350m to players all over the world including thousands in theUnited Kingdom.
The poker tycoon responded in a statement through his lawyers saying “I know that a lot of people are very angry at me. I understand why. Full Tilt should never have gotten into a position where it could not repay player funds.” Bitar has pleaded not guilty and was granted bail after posting a $2.5m bond.
Full Tilt had been operating with a poker license from the Alderney Gambling Control Commission. It is claimed that Alderney, the remotestChannelIsland, transmits more egambling traffic than any other location in the world.
Gambling groups are keen to obtain anAlderneylicense as there is no corporation or gambling taxes. Groups who target players in countries such as theUnited Kingdom, where online gambling is legal but tax rates are 15% are attracted toAlderneyin huge numbers. However, most Alderney licensees operate from servers or banks in data centers on theislandofGuernsey.
It is claimed that Full Tilt had “allegedly lied about its finances” to the Alderney Gaming Control Commission.
