Full Tilt - A ponzi scheme?

SBWife

Federal prosecutors in the US have filed a civil complaint saying that players around the world entrusted Full Tilt with $390 million in gambling money, and that the company promised to keep those funds in secure accounts. According to the suit the money isn't there; instead, much of it had been transferred to the owners and management of Full Tilt.

I guess the operations here are essentially unregulated but they AFAIK are a pretty large employer in SCD. If the US prosecutors are right it's another large blow to the Irish economy, and it's not good for the whole Ireland Inc. image.

Chucky the tree

SBWife wrote: »

Federal prosecutors in the US have filed a civil complaint saying that players around the world entrusted Full Tilt with $390 million in gambling money, and that the company promised to keep those funds in secure accounts. According to the suit the money isn't there; instead, much of it had been transferred to the owners and management of Full Tilt.

I guess the operations here are essentially unregulated but they AFAIK are a pretty large employer in SCD. If the US prosecutors are right it's another large blow to the Irish economy, and it's not good for the whole Ireland Inc. image.

How so?

ei.sdraob

SBWife wrote: »

Federal prosecutors in the US have filed a civil complaint saying that players around the world entrusted Full Tilt with $390 million in gambling money, and that the company promised to keep those funds in secure accounts. According to the suit the money isn't there; instead, much of it had been transferred to the owners and management of Full Tilt.

Sounds awfully like the whole banking system (especially the likes of Anglo!) to me :P

latenia

The money was transferred to the owners because it was making huge profits; the money players can't access was confiscated by the feds.

listermint

This is an example of the US prosecutors office trying to grab headlines, the fact is they froze much of the assets, the players would never have been paid regardless if the prosecutor managed to freeze 40 million or 300 million.

Are they trying to say that if the owners hadnt moved the assets prior to freezing the government would have paid out to the players? Em not likely.


Article here

http://www.foxbusiness.com/markets/2011/09/20/feds-full-tilt-poker-giant-ponzi-scheme/

MadsL

You are a bank, you have $390m in deposits. Where is that money? Because you sure as hell won't find it in the Vault.

The problem with Full Tilt was that they were so sucessful that leaving $390m in players accounts in (effectively) escrow is stupid business when they (management of FT) could be investing a good chunk of it. What has happened to FT is essentially a good old fashioned run on the bank.

https://www.youtube.com/watch?v=_Er69b4HMl8

Debtocracy

This guy blew all the money:

http://www.youtube.com/watch?v=nwxYglcWM0A