Former Full-Tilt Poker CEO Raymond Bitar was sentenced to time served in Manhattan federal court after pleading guilty to unlawful internet gambling and conspiracy to commit bank fraud and wire fraud.
The crime occurred in late 2006, when Congress enacted the Unlawful Internet Gambling Enforcement Act (‘UIGEA’), making it a crime to knowingly accept most forms of payment in connection with the participation of another person in unlawful internet gambling. Notwithstanding the enactment of UIGEA, Full-Tilt Poker continued to offer internet gambling to U.S. residents, taking in an estimated $1 billion from U.S. residents through April 15, 2011.
Raymond Bitar, the defendant, relied on fraudulent means to trick U.S. banks into processing payments for illegal internet gambling. He directed Full-Tilt Poker employees to falsely assure potential customers that player deposits would be held in segregated accounts, separate and distinct from the company’s operating accounts. In fact, Full-Tilt Poker did not protect player funds in segregated accounts and instead used them for whatever purposes Bitar directed, including to pay him and other owners millions of dollars.
In pleading guilty, Bitar admitted to working with others to defraud his poker customers by lying to them about the security of their funds and falsely promising players that their funds would be protected in ‘segregated’ accounts. In connection with his plea and sentencing, Bitar agreed to forfeit $40 million dollars in money and other property derived from his offenses.
Bitar’s guilty plea and sentencing in Manhattan federal court marked a significant milestone in the case, which was initially charged on April 15, 2011. The defendant’s sentence was influenced by his extremely serious heart condition and urgent need for a heart transplant.
The case was prosecuted by the United States Attorney’s Office for the Southern District of New York, with Preet Bharara serving as the lead prosecutor. The outcome of the case serves as a warning to those who engage in unlawful internet gambling and bank fraud.
In the end, Bitar was sentenced to time served, a decision that was influenced by his dire health situation. The case serves as a reminder of the consequences of engaging in unlawful activities, particularly in the realm of internet gambling and bank fraud.
Defendant: Raymond Bitar
Criminal Charges: Unlawful Internet Gambling, Conspiracy to Commit Bank Fraud and Wire Fraud
City and State: New York
Exact Date: April 2011 (initial charge), 2012 (sentencing)
Sentence or Outcome: Time served
Dollar Amounts: $1 billion (estimated revenue from U.S. residents), $40 million (forfeited funds)
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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