BREAKING: DOJ and GBT Ink Their Deal, FTP/GBT Next in the Queue

November 17, 2011 - 7:57 PM EDT
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Following the longest two and a half weeks for online poker players since Black Friday, Subject: Poker can confirm that the US Attorney’s Office for the Southern District of New York, and Group Bernard Tapie have signed their letter agreement, allowing for the acquisition of the assets of Full Tilt Poker by GBT once FTP have inked their side of the agreement.

Mr. Behn Dayanim, the Washington, D.C. attorney for GBT in this matter, offered the following statement to Subject: Poker:

We have an executed letter agreement with the Department of Justice that would allow GBT to purchase the Full Tilt assets from the United States. This is the first step in a process that will require agreement of the Full Tilt companies to the forfeiture of those assets and execution of a definitive agreement with the Department.

Mr. Jeff Ifrah, Full Tilt’s attorney, echoed Dayanim’s enthusiasm with the following comment also made to Subject: Poker:

The historic agreement between DOJ and GBT lays out the terms of sale, requires GBT to reimburse ROW players, and details the procedure proposed to reimburse US players. But there is still work to do and of course important questions remain. When will the assets be forfeited and how quickly will the players be reimbursed? As answers to these questions become clearer, I anticipate you will receive further announcements from the parties to the transaction

FTP’s shareholders still must agree to the forfeiture of the companies’ assets in order for the deal to move forward. Hopefully this will happen in short order, and Subject: Poker will keep our readers advised of updates as they become available.

Sources report that if FTP agrees to the settlement, the DOJ will gain title to FTP assets, GBT will pay the DOJ $80 million, and GBT will then acquire the assets of the Full Tilt Poker companies from the DOJ. As we previously reported, GBT would maintain responsibility for all non-US account balances, and US players would have to apply for reimbursement through the DOJ via a remission fund. In return, the DOJ would agree to dismiss the pending civil claims against the FTP companies, and GBT would be free to start on the road to relaunch the new company.

Subject:Poker will bring you more details as they become available.

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26 Responses to BREAKING: DOJ and GBT Ink Their Deal, FTP/GBT Next in the Queue

  1. happyfeet
    November 17, 2011 at 8:07 PM EDT

    fapfapfapfap

    • Realist Who Knows Stuff
      December 10, 2011 at 8:27 PM EDT

      The biggest hurdle to a deal is Tapie himself. From trying to delay paying the rest of the world players and short changing them he has now accepted that any future Full Tilt will only succeed if he allows all the Rest of the world players to cash out completely and without penalty if they so wish.

      The problem now however as always is that he doesnt want to pay what it will cost him ie enough to cover all those player funds and in any case it is to much of his net worth so in reality he cannot afford to take over the liabilities.

      He desperately needs to find money from somewhere and nobody is prepared to put up that kind of money so the deal is now in very serious doubt because Tapie is just an asset stripper and nobody wants to give him money at the highly inflated cost of more than $200 million beecause he wants to put no more than a maximum of $50 million of his own money into this project.

      Conclusion this deal is about to die a death

  2. brazilpokerpro
    November 17, 2011 at 8:10 PM EDT

    one time!

  3. porky
    November 17, 2011 at 8:18 PM EDT

    free to start on the road to relaunch the new company?

    i think it should be “relaunching” if you want to use that weird metaphor.

  4. moneyyyyyyyyyyyy
    November 17, 2011 at 9:05 PM EDT

    thank you for the info guys!

  5. rakalaka
    November 17, 2011 at 10:19 PM EDT

    Again another positive piece of news. You guys think FTP will still offer rakeback when back in business ?

  6. Kevin
    November 17, 2011 at 10:22 PM EDT

    So does this mean the claims that were filed against Lederer, Furst, Ferguson, and others are dismissed as well? or is that separate?

    Seems to me if they are dismissed as well…then they’ve just gotten away with one steal of a deal.

    • Poker Expats
      November 18, 2011 at 3:53 AM EDT

      My understanding is that the case against the FTP board will still move forward, regardless of the outcome of the GBT/DOJ/FTP deal.

      • Diamond Flush
        November 18, 2011 at 12:42 PM EDT

        The claims in the Civil case against the FTP companies would be dismissed. All other claims would be uneffected.

    • Diamond Flush
      November 18, 2011 at 12:41 PM EDT

      If this moves forward, ie FTP agree to forfeit everything, the DOJ will dismiss claims against the FTP companies in the civil complaint. No other dismissals or considerations are to be part of the agreement.

  7. Palikari
    November 18, 2011 at 4:03 AM EDT

    Does this mean that Howard Lederer etc. are off the hook?

  8. kkellyQQ
    November 18, 2011 at 9:27 AM EDT

    Wooooohooooo!

  9. Jordan
    November 18, 2011 at 9:30 AM EDT

    “US players would have to apply for reimbursement through the DOJ via a remission fund.” Does this guarantee that US players will get 100% of their money back?

    • Chappie
      November 19, 2011 at 10:17 PM EDT

      Certainly not.

  10. Chuck
    November 18, 2011 at 12:39 PM EDT

    Interestingly, this may give “New Full Tilt” a leg up on Pokerstars if/when there is US legislation. Any regulatory scheme is unlikely to allow a company under criminal indictment to be licenced. While Pokerstars will likely be the same company controlled by the same principals who were indicted by the DOJ, “New Full Tilt” will be a new entity with new ownership that was not part of the DOJ’s criminal action…

  11. Corey
    November 19, 2011 at 4:34 AM EDT

    just curious…I heard US players will have to apply to get their money back from the DOJ. Is this true? and if so, does this mean not everybody will get paid? Is it possible DOJ will tax our full tilt money?

    • Chappie
      November 19, 2011 at 10:23 PM EDT

      The DOJ doesn’t levy taxes. That’s the Dept. of Revenue. You already owe taxes on that money, assuming you won, and possibly in some cases if you lost (consult a CPA). If by “tax” you mean, “Will I get less than I am owed?” then yes. The government is not going to pay out one penny more than they seized, and it’s uncertain at best that they seized enough to cover all US balances. And it’s less certain that any sizeable chunk of the money they did seize is even laying around to be distributed.

  12. MARTY THE CRUSHER FROM NJ
    November 19, 2011 at 8:12 AM EDT

    FOR THOSE OF YOU WHO ARE INTERESTED IN KEEPING UP WITH THE DAY TO DAY PROGRESS OF THE CRIMINAL CASES AND THE CIVIL CASES, YOU MAY ESTABLISH AN ACCOUNT WITH THE FEDERAL COURT WEBSITE “PACER”. YOU WOULD THEN BE ABLE TO READ AND DOWNLOAD ALL THE PLEADINGS, MOTIONS, COMPLAINTS ETC. FOR ALL THE CASES. LOOK UNDER BOTH THE CIVIL AND CRIMINAL CATEGORIES; SOUTHERN DISTRICT OF NEW YORK; DEFENDANT FULL TILT.

  13. Ludwig Borga
    November 20, 2011 at 12:14 AM EDT

    So when will FTP or GBT be up and running? If US is regulated, will Stars and GBT have a say as they are also indicted? Will Party be the force it once was if things fall back in order?

  14. LouDog
    November 20, 2011 at 8:35 AM EDT

    I seem to recall that the DOJ seized 10s of millions of dollars from Full Tilt in the years leading up to Black Friday. Is it possible that the DOJ will use the $40 million from the Tapie Group, the money seized on Black Friday and the previously frozen funds to fully reimburse U.S. players? Does anyone know how much Full Tilt money was seized by the DOJ prior to Black Friday?

  15. Robert Dudek
    November 22, 2011 at 7:42 PM EDT

    What are the chances that FTP will reopen exactly where it left off, with balances, points, medals and rakeback deals restored to RoW players?

  16. MARTY THE CRUSHER FROM NJ
    November 23, 2011 at 5:27 PM EDT

    FIRST OF ALL, DON’T HOLD YOUR BREATH.
    SECONDLY, WILL THE IRS DOUBLE CHECK THE US PLAYERS’ PAST TAX RETURNS TO MAKE SURE THAT THEY PAID TAXES ON THEIR TRUE NET YEARLY WINNINGS?
    IN OTHER WORDS, WHAT WILL HAPPEN IF A US PLAYER CLAIMS THAT HE IS PRESENTLY OWED $1,000,000 BY FTP WHEN ALL ALONG THE US PLAYER HAS CLAIMED ONLY $10,000 OF YEARLY INCOME?
    WILL THE IRS SUBPOENA FROM FTP THE ACCOUNT RECORDS OF ALL US PLAYERS TO SEE WHAT DISTRIBUTIONS WERE MADE BY FTP TO THEM OVER THE PAST SEVERAL YEARS RELATIVE TO THEIR CLAIMED YEARLY INCOME?
    IS EACH DISTRIBUTION BY FTP A TAXABLE EVENT?

    • SteppinRazor
      November 23, 2011 at 11:23 PM EDT

      Best to ask a tax professional, but my understanding is you have to declare winnings by year.
      As to whether the DOJ would share with the IRS, and the IRS would task someone (several someones I’d guess)to calculate what is owed is something I don’t think anyone knows the answer to. My guess is it would depend on a cost/benefit analysis with some assumptions as to how much in back taxes they can collect. There is also the possibility that the DOJ did not seize enough to cover all of the American players’ money. If that’s the case and the DOJ decides to do partial refunds, my guess is the IRS won’t bother trying to figure it all out. If they think there’s a large amount of unpaid taxes they might decide it’s worth going after.
      And after all, it’s the IRS. They can pretty much do what they want to most people.

  17. Dravid
    November 25, 2011 at 3:34 PM EDT

    Lol dont think there is too much positive to take from this news. Its a step in the right direction alright. But looking at the eagerness of Subject Poker, looks like one of its owners has a lot of money stuck at FTP by way of running some bot.

  18. MARTY THE CRUSHER FROM NJ
    December 9, 2011 at 11:56 AM EDT

    NEWS FLASH: ON DECEMBER 5 2011 THE UNITED STRATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK ENTERED A DEFAULT JUDGMENT AGAINST DEFENDANT HOWARD LEDERER IN THE CIVIL CASE OF ZAYN JEHTA AND DONALD WHELAN VS HOWARD LEDERER ET ALS. THE MONETARY AMOUNT OF THE JUDGMENT IS YET TO BE DETERMINED BY THE COURT.

  19. MARTY THE CRUSHER FROM NJ
    December 20, 2011 at 2:01 PM EDT

    OWNER OF ABOSULTE POKER PLEADS GUILTY IN NEW YORK FEDERAL COURT OF SEVERAL FRAUD VIOLATIONS.

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