My bad: Brent Beckley, guilty of online poker.

DOJ prosecutors keep moving up their ladder of bad guys in the unlawful internet gambling case against Isai Scheinberg et al. Brent Beckley, the 31-year-old father of two and a co-owner of Absolute Poker, told a Manhattan judge he did indeed lead a company that deceived US banks to circumvent US law, and acknowledged conspiring with others to commit bank and wire fraud. Beckley will likely serve 12-18 months in prison as part of a plea agreement, Reuters and the New York Times report.

This probably doesn’t bode well for other Black Friday defendants who face more severe charges and still haven’t stepped foot into US court. Though I haven’t seen actual documents on this one yet (readers please feel free to send a link or pdf), I’d be willing to bet (on this-here internet?) that the plea deal does not cut Beckley any slack because Absolute Poker patches said “dot net”.

The big news this week is PPA’s meeting with the Department of Justice regarding player funds locked up on Full Tilt Poker, Absolute Poker, and Ultimate Bet. Needless to say, this is at the forefront of the concerns of the membership and of the PPA, so I am pleased to report that your PPA has been proactive in pushing for restitution for our members.

From Executive Director John Pappas:

“We still have an open dialogue with [the DOJ] and look forward to more productive conversations down the road. We plan to follow up to make sure the DOJ gets a guarantee that players get restitution through any deal with new Full Tilt management.”

For more on this important story, please check out Poker Players Alliance Meets with DOJ Regarding Full Tilt Poker Player Funds -  Poker News (October 7, 2011).

In other news …

Druff, Micon, and Drexel are all present for this one, as we return to the airwaves after a 16-day absence.  Tournament grinder Stacey Lynn is our special guest.  We talk about the Tobey Maguire poker bust.  AP founder Phil Tom is back at the WSOP playing Mr. Innocent.  We discuss the rumors that Full Tilt stupidly invested $200 million in a no-name movie company.  Micon continues to obsess over bitcoins.  The June 29th DonkDown Insert Coins Party is announced.  Drexel walks off the show when Micon won’t hang up on Yebsite.  Druff and Micon both deal with illnesses while hosting the episode.  Druff talks about being denied tomatoes on the side at a Subway restaurant.

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Raids at the Absolute Poker offices in Costa Rica, and big Las Vegas casinos are now in favor of regulating online gambling? Also, J Todd interviews Betfair about the future of online gambling!

The Cereus Poker Network, home of Absolute Poker and Ultimate Bet, have been sold to “e-gaming entrepreneur” Stuart Gordon, creating Blanca Games to purchase the company previously owned by Tokwiro Enterprises ENRG.

The full press release appears below:

More…

No details, and no confirmation … but who wants action!?!

CalvinAyre.com is saying that the Cereus Network — the beleaguered yet thriving online poker+blackjack collective — is shutting down their office in the Kahnawake territory. The Kahnawake Mohawk Territory, of course, roughly 18 square miles located just outside of Montreal, has long been a refuge for online gambling sites operating literally outside the reach of US law. It has been the home of Ulitmate Bet (now UB) since 2001 and Absolute Poker since 2003.

No clue at present what this would mean if true, nor what might be the implications for representative players such as Annie Duke, Phil Hellmuth, and Trishelle Cannatella. Maybe it’s simply a matter of Cereus COO Paul Leggett just responding to Daniel Negreanu’s call for him and his business to take a hike?

It’s also possible, of course, that maybe their lease was just up, and they found a sweet new pad with a view of the St. Lawrence River?

We’ll surely see in coming days and weeks. But I’m at least 90 45 72 percent sure that such a move isbig deal in some capacity, and it coincides with more lawuits Pokerati hasn’t even told you about. I literally can’t keep up with all the shizznit heading toward various fans at this moment. I’m trying though … Stay tuned today, tomorrow, and in coming weeks to learn about more business and legal matters that may well affect operations at the 2010 WSOP and beyond.

UPDATE: Plausibly connected … @KevMath (of course) tips me off (and the folks at 2+2) to a letter from the Kahnawake Gaming Commission, dated May 10, 2010, acknowledging a “memo of understanding” between them and the Alderney Gambling Control Commission. Alderney is the small British dependency in the Channel Islands that currently licenses and regulates Full Tilt.

More…

Last Saturday, according to the Donkdown forum (some images NSFW), Lacey Jones let Brian Micon and Todd Witteles know she is no longer a part of Absolute Poker. Lacey will be appearing as a presenter for Full Til’s Doubles Poker Championship, airing in mid-July on GSN. Further details weren’t available, but I’d think they mention this news on DonkDown’s Cold Call show, airing Wednesday night around 7:30pm PT.

The scandal-plagued Cereus Network, home of Absolute Poker and Ultimate Bet, took another hit on Thursday regarding their encryption procedures. Poker Table Ratings issued a “security alert” advising players not to play at AP/UB as they revealed a major security flaw as Cereus was using XOR encryption rather than the poker industry standard SSL protocol for all network transmissions.

An example of what PTR found is in the video below:

Cereus COO Paul Leggett issued a response shortly after the PTR report came out Thursday evening and posted a status update just a few minutes ago stating that they’ve issued an update to their software earlier Friday and are working with PTR on the new encryption and the eventual release of a more advanced solution using the Open SSL protocol, scheduled to be available in one week.

Tuesday night’s WSOP Main Event episode featured Norman Chad stating one sentence about the Ultimate Bet scandals as Phil Hellmuth and Todd “Dan Druff” Witteles were at the same feature table. Michalski noted in the comments, Mark originally “broke his silence” regarding the Absolute Poker scandal over at Raw Vegas back in 2007.

Watch The Toke – Absolute Poker’s Mark Seif on RawVegas.tv

In response to some of Seif’s comments, Todd “Dan Druff” Witteles offered a response on RawVegas.tv a few days later.

Watch The Toke – Dan Druff on RawVegas.tv

Mark breaks his silence to briefly discuss the Absolute Poker/UB Scandals (about 13:00 into the show):

Mark also discusses the scandal on ESPN.com’s Poker Edge podcast (starting at around 11:00), also available on Itunes.

Many in the poker industry consider the UltimateBet and Absolute Poker scandals resolved, at least as much as we can expect them to be considering the sources of any information and the lack of the ability to involve U.S. law enforcement due to jurisdictional issues. And while some of us still have eyes and ears open for further developments, such as those that may appear on a Russ Hamilton twitter feed, Haley Hintze, former Editor-in-Chief of PokerNews, has decided to put out all of her well-informed conjecture on her own blog and gives one of the more detailed explanations of how, when, and why the UB/AP scandals were perpetrated. Though she has only posted Part 1, the rest of the story, we presume, is forthcoming.

Part 1 dives into the beginnings and how Hamilton got involved and possibly recruited help. Here is a portion of the post:

There are three reasonable scenarios for how the cheating spread, as spread it surely did:

1) One or more software engineers working on the UB code recognized the illicit profit potential for themselves, and also began to slice money from the games;

2) Hamilton himself recruited one or more Costa Rican workers to assist him in the cheating, as a way of expanding the total money being stolen;

3) Someone at UB caught Hamilton — probably noticing unusual withdrawal amounts relative to the amount of play Hamilton was logging — and decided to cut himself in for a slice of the action.

From some time in 2006, I believe, it was game on in a big way for the cheats. I’d heard whispers as far back as 2005 that something was wrong with the cash games at UB, but I played there very little, only at small stakes, and couldn’t really speak to it.

The post in its entirety can be found here.

Todd Witteles is saying over at Neverwin that there’ll be another report on a “major network” regarding corporate greed — and part of the show will be mentioning the UB/AP scandal.

Doesn’t sound like necessarily new info — but regardless, the kinda rehash that both sides of online-poker legislation will try to claim as an example of why we need to legalize/ban online poker.

On a day when the world’s eyes will likely be focused on Day 3 of $50k HORSE USA vs. Brazil, 60 minutes is rerunning their story on the biggest scandal to hit online poker.

Curious timing. It could just be a throwaway piece of filler, or it could be given an introductory time-hook connecting it to the kickoff of the WSOP. (The non-poker world that hasn’t been following us for the past month thinks the World Series starts next week.) Or … might the replay have been pushed in connection with National Poker Week and the supposedly soon-to-be-heard Barney Frank bill?

ADDENDUM: Yep, pushed back to September.

If that’s the case, you gotta wonder which side pushed for that — the side that contends prohibition is necessary because online poker is a crooked, degenerate pursuit, or the side trumpeting regulation in part because of the assistance needed to keep the game clean.

The Hollywood Reporter is, well, reporting from Hollywood that Leonardo DiCaprio is pegged to star in a film about online casinos based in Costa Rica. Not only does the star currently aligned with the film give us hope that it won’t be another Deal, but the writers – Brian Koppelman and David Levien – are the same ones who penned Rounders. And Paramount Pictures has picked up the script. (Note to self: Check in with former employer Paramount for possible consultant positions available. Cha-ching!)

Hmmm, Costa Rican-based online casinos…like UltimateBet and Absolute Poker? Scandals and cheaters and Russ Hamiltons, oh my.

Since the movie is yet untitled, let’s throw out a few gems for Paramount to consider:

Titanic (ooooh, sorry)
UB and Me
Rounders 2 (or Part Deux for my French friends)
Rounderaments
What’s Eating Russ Hamilton?
Gangs of Costa Rica
The 11th Hand

Okay, I’m done. Anyone else?

I had been hearing murmurs … and now we get the word from @LaceyJones herself that the hostess of tomorrow night’s WSOP launch party is back with her former backers at Absolute Poker.

Though I haven’t had a chance to ask her about it yet, it’s a curious move … considering she was a disgruntled former face-person for AP with plenty of reasons to believe they may have been a shady operation even before the cheating scandal emerged. (It was the bogus charity popcorn sale at the 2006 WSOP, I think, that really chapped her hide.)

While I suppose it’s theoretically possible that Lacey is such a degenerate poker addict that returning to her former abusers was the only way to get her tournament fix, might it more so suggest that one of the purest poker hotties has re-evaluated the company and concluded that the new-and-improved operations at Absolute are clean and dandy?