Black Friday Fallout Continues

@BlackFridayChad Elie sues attorney @JIfrah

by , Apr 12, 2013 | 2:57 pm

Courtesy of Nathan Vardi, today comes news that Chad Elie, a Black Friday defendant now serving federal time, has sued Washington D.C. lawyer Jeff Ifrah and his law firm, Ifrah PLLC, whom Elie alleges were retained to represent him. The complaint was filed yesterday in the District Court in Clark County, Nevada; a copy of the complaint is available here.

Part of the complaint is devoted to Ifrah’s defence (or purported lack thereof) of Elie in a prior case commenced in Nevada state court and subsequently removed to federal court.

But the potentially explosive part of the claim concerns alleged payments that Ifrah received payments from Elie’s LLC (21 Debit) as “commission[s] on procuring the deals with the banks which processed poker transactions.” In so doing, Elie alleges that Ifrah acted in a conflict of interest vis-a-vis Elie and his other clients and withheld critical information from Elie about the illegality of payment processing for online poker in the United States. Elie states that Ifrah received $100,000 per month as his cut for this processing and more than $1M in total therefrom.

The other incendiary claim is that Ifrah disclosed privileged and false information to the US Attorney for the Southern District of New York “in order to avoid indictment from the US Attorney’s office for his own illegal activities.”

This is just a complaint at this stage; none of this is evidence and nothing has been proved in court. Ifrah will doubtless respond. Given the seriousness of the allegations, the response should be every bit as good a read as the complaint.