It’s not quite 60 Minutes … in fact, it’s closer to 73 minutes. Absolute Poker/Ultimate Bet honcho Paul Leggett speaks with the CBC’s (Canadian Broadcast Company) Susan Reisler for an extremely detailed and stoic Q&A. I can tell you I’m very suspicious. This looks like an infomercial to me. (The apparent title of the show is simply “Poker” — I wasn’t aware of that investigative journalism news program.) Though she gets into all the controversial issues — and even the inbred nature of AP/UB/Tokwiro/Norton/Kahnawake — there’s no follow-up to anything that might sound peculiar (like the inbred nature of AP/UB/Tokwiro/Norton/Kahnawake) … she just allows him to state the facts and timelines, as if he were giving a legal deposition under questioning from his own attorney.

CONFIRMED: This is indeed a production by Tokwiro Enterprises, aka AP/UB. Anyone wanna wager on how many attorneys were standing off-camera to keep all commentary in legal line?

Sorry if I sound cynical. Really, it’s an admirable effort from Paul Leggett, the guy Annie Duke stands so strongly behind. Via the mock news program format, he addresses just about any question any of us have had about the whole Black Sox of Poker sitch. Kudos to you, Mr. Leggett, seriously, and thanks for finally coming forward with so much candid info. Personally, I’m starting to see your point of view on all this … and there were only a few questions where your answers made me wonder why Ms. Reisler didn’t follow up with: “But don’t you think that sounds fucked up?”

Click here for the entire 9-part library … bonus points if you can find the point where Leggett says “We were the victim here.”

Also check out the vid below, where Annie Duke speaks her mind on why she’s so loyal and has so much faith in AP/UB security … right down to algorithms and dealing with bots … and be sure to watch 4 minutes and 10 seconds in, where Reisler does her 60 Minutes style wrap-up: Everything is safe and secure, and Russell Hamilton is the Ultimate Bad Guy — he’s not part of Tokwiro and is in really big trouble if they can ever get their hands on him.

[Cue neoclassical new-age healing music.]

NOTE: KafkaCR? That’s the new YouTube video uploader’s name … OK, the CR is for Costa Rica … but Kafka? The Jewish-Bohemian novelist who, according to Wikipedia, wrote about “troubled individuals in a nightmarishly impersonal and bureaucratic world”?

Oh, wait … I get it … Metamorphisis! Very clever project name, whether intentional or not.

CBS has posted their sked for this weekend — and while adjusting story line-ups is standard operating procedure for any real journalistic operation, that rumored Oct. 26 date isn’t so. What is on the agenda for this next Sunday [from CBSNews.com]:

Sunday, Oct. 26, 2008
CREDIT DEFAULT SWAPS – Steve Kroft examines the complicated financial instruments known as credit default swaps and the central role they are playing in the unfolding economic crisis. L. Franklin Devine is the producer.

T. BOONE PICKENS – The oil and gas maven is on a mission to lessen America’s dependence on foreign oil. Charlie Rose reports. Michael Radutzky and Tanya Simon are the producers.

GORONGOSA – American Greg Carr is using his great wealth to try to help some of the poorest people in Africa by attracting more tourists to their neighborhood – the beautiful national park of Gorongosa in Mozambique. Scott Pelley reports. Rebecca Peterson and Henry Schuster are the producers.

And a few minutes with Andy Rooney …

My personal guess is that they will time it with the final table of the main event … either the weekend immediately before or immediately after.

UPDATE: More good info on what 60 Minutes has in store on the NWP Radio podcast (about 45 min in).

For those that have forgotten, an article today on msnbc.com brings up the scandal yet again. Mike Brunker ties in a $80m (Canadian) claim against the former owner of UB –Excapsa Software Inc. of Toronto by Blast-Off Ltd. of Malta (the current UB owner).

It goes over the details of the two scandals, including mentions of NioNio, Russ Hamilton’s alleged involvement, 2+2 posters help in breaking the scandal, among other items, definitely worth reading.

Jen, you know more about Absolute than I do, so maybe you already know … but I wasn’t aware that Scott Tom’s dad (what’s his first name? he won a 2008 bracelet, I know that much) may or may not be under indictment.

Am also curious why any indictment in this case would be sealed.

As noted in the original post, I recently interviewed Tokwiro Enterprises Chief Operating Officer Paul Leggett about a number of issues the recent UltimateBet and Absolute Poker scandals.

The interview transcript has been broken up into three parts and posted on PokerWorks. Part 1 focuses on Tokwiro’s purchase of AP and UB, and how any inkling of impropriety could be missed in the due diligence phase.

Part 2 delves deeper into the investigations – the internal UB one concluded by Tokwiro itself, the ongoing UB investigation by Gaming Associates, and the “surprise” assignment of Frank Catania to audit Tokwiro as a company. Leggett also discusses the reasons for the reimbursement process lag time, whether or not Russ Hamilton was involved in the cheating, and the roles of Phil Hellmuth and Annie Duke in it all.

In Part 3 I gave Leggett a chance to discuss what has been done at UB to rectify the problem and improve security going forward, and why customers should have confidence in UB and AP.

I feel that Leggett was as forthcoming as he was allowed to be, considering the restrictions inherent in the pursuit of legal action. He helped dispel some myths and rumors, though his inability to discuss Hamilton’s alleged involvement or any evidence in the case keeps interested parties in limbo for awhile longer. However, he helped put somewhat of a timeline on information he hopes will be released to the public, and he provided some details about how Tokwiro has tried to overcome the scandals, close security gaps, and regain the trust of the poker public.

Some might say that I’ve been a raving lunatic somewhat vocal about my frustrations with the AP and UB scandals. This is true, and thus I attempted to contact UltimateBet once again in July for answers to some of my questions. To my surprise, I was contacted by the Vice President of PR at Tokwiro Enterprises, UB’s parent company, who said she would respond to my inquiries. After two weeks of no such thing, I was on the verge of writing another rant/post here sending a polite follow-up when I received an e-mail asking if I’d like to speak with the Chief Operating Officer of Tokwiro, Paul Leggett. Ummm, yes, please.

I conducted the interview on Friday, Aug. 8, via telephone, and I must say that I was pleasantly surprised at Mr. Leggett’s willingness to answer my questions as he was able and be as honest as the corporate attorneys would allow. He has been reaching out to other media outlets lately, having done guest appearances on 2+2 and Pocket 5 podcasts, and I was happy to finally have a door opened and someone coming out to answer questions.

The full interview has been submitted to PokerWorks in a three-part series due to the length of the transcribed interview. The first article is up now, and the others will be posted in subsequent days.

Highlights of the interview included dispelling myths and rumors, speaking of the utmost confidence that the perpetrator(s) will be caught and prosecuted, and giving details about new security procedures and systems to prevent future improprieties.

A few excerpts:

In response to a question about how two companies, AP and UB, could be purchased without any knowledge of cheating going on at the highest levels:

“There definitely was due diligence done at the time of purchase… but this is a very large platform that we purchased. Unfortunately, during this due diligence process, we simply did not discover the code that was put on there…”

More…

The readers have spoken … and 42 percent of you are so damn principled that you wouldn’t even consider accepting tournament buy-ins from Ultimate Bet or Absolute, while 22 percent have a more mercenary attitude and/or have forgiven UB/AP. 18 percent of us aren’t sure, 12 percent have become so cynical that what’s the point of trying to lead a good life, and 6 percent are saying random shit that makes them kinda unclassifiable. So there you have it.

There’s a new poll up (on the right) where I’m curious … with our current knowledge of the poker world, business developments, main-event final-table hype in action, the state of poker on TV, political wildcards, and, of course, intangibles … how big do you expect the main event in the 2009 WSOP to be?

With all the attention on the UB/Absolute scandal today, I thought I’d offer some perspective on non-poker scandals. And since poker is a “sport” …

Sports Illustrated/CNN have compiled a photo gallery representing the 13 biggest “Gambling Scandals in Sports.” (No, UB and Absolute didn’t make the list.)

The scandals date from the Black Sox of 1919 (when the Chicago White Sox famously threw the World Series) to the NBA referee (Tim Donaghy) who pleaded guilty to accepting money from a gambler. Basketball was the most offending sport, with six of the 13 spots on the list (46%). Boston College has the dubious honor of being listed twice (for basketball in the late ’70s and football in the mid ’90s).

The last item on the list (which appears to be in no particular order) is about former NHL player Rick Tocchet, who has played in a major poker tournament or two.

Check out the full list here. (Keep in mind that this list only includes gambling scandals, and not cheating scandals in general.)

I find it interesting that while individual players must live with the consequences for decades (Pete Rose, Shoeless Joe Jackson, etc.), the organizations that allowed such cheating to take place usually pay only a short-term penalty before returning to full respectability.

It’s not a perfect parallel to the UB/Absolute scandal, but I think it’s relevant. It’s possible that after a few years, this scandal may be nothing more than a footnote to those two companies. What do you think?

If you find sports scandals boring, you can always check out SI’s second-most popular gallery (at the moment): “The Best 1980s Swimsuits,” with a vintage Christie Brinkley SI cover in the leadoff spot. In middle school, I claimed that my initials stood for “Billy Joel,” and he was my uncle. He married Christie later that year, and my popularity soared. Wait … swimsuit photos? Am I blogging for Pokerati or Wicked Chops?

Justin Shronk is also disappointed in Tiffany Michelle’s decision to sign with UB, and he made no bones about his feelings in an open, thoughtful letter to her on the PokerRoad website. In his Pokerazzi column dated today, he notes that he wants the best for his friend but believes this sponsorship deal is not it, and he hopes she goes the way of Eric “Rizen” Lynch and detaches herself from the UB brand.

Shronk’s letter in full is reprinted here:

BACKGROUND: I worked with Tiffany Michelle as Multimedia Manager for PokerNews from February to October of ’07. Tiffany was our first on-camera hostess at the LAPC in February ’07 and we worked together everyday at the ’07 WSOP. I still consider her a good friend and respected colleague.

Tiff,

As is everyone that knows you, I’m really proud of what you did in the recent WSOP Main Event – and not just for placing 17th, someone does that every year. I took genuine joy in watching the poise with which you handled yourself every single day of the tournament. Maybe it was the lack of testosterone, or maybe it was your experience in front of cameras and crowds, but it’s not often you see a first-timer displaying more class than a lot of the players who’ve been there before.

That being said, as proud and happy as I’ve been for you, I’ve been equally disappointed with some of your choices – namely your association with Ultimate Bet. At this point, no one needs the details of the cheating scandal spelled out, and you probably know more about it than I do. This letter isn’t meant as an indictment of Ultimate Bet as a company – for that you can read the news releases or forums. Ultimate Bet is presumably now as clean as any other site, but it’s the past behavior of their owners that makes your decision such a terrible one. The current owners of Ultimate Bet are accused of dishonest and borderline criminal activity – and by representing the site you’re helping these same people make money.

More…

I really don’t know where I stand on this — especially without knowing the backing details and long-term intangibles — nor whether or not it’s even my position to have a stance when I think just about everyone is stupid, lame, and corrupt for working for The Man!. So I have put it to the readers … new unscientific poll on the right, asking how you would handle a potential business relationship with and de facto endorsement of an ethically challenged poker enterprise.

Oooooh, somebody might be in trooooouble! Or this could be a necessary step to ensure that the CEREUS network will have no problems. Either way, the situation is getting dicier.

Less than a week after the Kahnawake Gaming Commission finally stepped into the UltimateBet fray and noted that it’s hoping to have a final decision released in the coming days, the KGC has released another statement. This one is interesting in that it details the beginning of a new and separate investigation, this one into Tokwiro Enterprises, the parent company of UltimateBet and Absolute Poker. The most noteworthy aspect of this situation is that Tokwiro Enterprises is owned by Joe Norton, former Grand Chief of Kahnawake. Yep. Take that and put in in your pocket.

The details of the independent investigation being launched is in the full copy of the statement below:

Mohawk Territory of Kahnawa:ke
July 27, 2008

KAHNAWA:KE GAMING COMMISSION APPOINTS INDEPENDENT MONITORING-INVESTIGATION TEAM
Effective immediately, the Kahnawa:ke Gaming Commission (KGC) has appointed an independent monitor, led by former New Jersey State Gaming Regulator, Frank Catania, to investigate the KGC Licensee, Tokwiro Ent., parent company of both Absolute Poker and Ultimate Bet.

Mr. Catania is a former Director of the New Jersey Division of Gaming Enforcement (DGE), the regulatory and enforcement agency responsible for maintaining integrity and trust in all Atlantic City gaming operations. As division director, he was a driving force in updating the New Jersey Casino Control Act by fine tuning the balance between regulatory necessity and economic stewardship. After leaving the DGE, he served as the vice president in charge of compliance for Players International, Inc. where he was instrumental in resolving compliance issues the company had encountered in the State of Louisiana, prior to his appointment. He is a principal in Catania Gaming Consultants and the Law Offices of Catania & Associates LLC

The Independent Monitoring Team will be given the task of completing a full forensic audit/investigation of the online gaming business of both licensed entities. The main purpose of the investigation is to ensure that the games offered to the public are fair and honest and that all player protections as required by the Kahnawa:ke Gaming Regulations are being complied with, without exception. The monitoring team will also be charged with verification that all those involved in the fraudulent activities in any manner, no matter how slight, have been or are removed from the licensee company and verify that Ultimate Bet and Absolute Poker have submitted to full compliance with the directives issued by the KGC and recommended by the independent monitor.

Furthermore, Mr. Catania’s team will be empowered by the KGC to have full access to interview all employees, past or present, review all records, contact and interview all sub contractors and individuals whom the monitoring team believes necessary. Any failure by the licensees could result in immediate revocation of their license privileges with the KGC. In the event that any criminal activity is found to have occurred, such activity will be reported to the appropriate authorities for possible prosecution.

KGC License Holder, Tokwiro Enterprises has agreed to comply fully and submit to this independent monitor.

KGC Chairman, Dean Montour adds, “While the ongoing investigative process has dominated the attention of the KGC in recent months, we are fully confident in the ability of the Independent Monitoring Team to deliver results and assist the Commission in bringing this matter to a decisive conclusion.”

As per the terms of the monitoring agreement, and at the conclusion of the process, the KGC will review the report of the monitoring team and enter the results into their final considerations at the time of ruling in the Ultimate Bet and Absolute Poker investigations.

Murray Marshall
Senior Advisor
Kahnawa:ke Gaming Commission

Ah, it reminds me of the good-ole-days of the Dallas underground … when a bunch of rooms got ruffled every so often you’d see the merger of a few “bad guys’” games and would be kinda surprised but not really.

With an investigatory explanation due out in a few days, Absolute Poker and Ultimate Bet are merging to form a new site — now the third largest in the world — called “Cereus” — the name for a desert cactus that stands strong and stays prickly in even the harshest environments. A related species is the Cereus uruguayanus, which may or may not lend credence to Oliver’s prediction that very soon the WSOP will move to Montevideo we could see the WSOP in Punta del Este.

The name could also have been inspired by the night-blooming variety:

One of the strangest plants of the desert, the Night-bloomiing Cereus is a member of the Cactus Family that resembles nothing more than a dead bush most of the year. It is rarely seen in the wild because of its inconspicuousness. But for one midsummer’s night each year, its exquisitely scented flower opens as night falls, then closes forever with the first rays of the morning sun.

Aww, so sad, and yet so precious and sweet …

Another operation with a claim to the Cereus name is Bacillus Cereus:

an endemic, soil-dwelling, Gram-positive, rod-shaped, beta hemolytic bacteria that … is known to create heavy nausea, vomiting, and abdominal periods.

Supposedly, according to the first link in this post, this site is gonna be great — it’s the result of all sorts of innovative technology and customer service. The announcement says nothing about it being all cleaned up with the best security out there — and from a PR perspective can you blame them? — even though theoretically this company should have more knowledge than anyone else about how a site’s integrity can be compromised.

Ret. Sen. Alfonse D’Amato stops short of calling for UN intervention in the Kahnawake Territory, but he does express a desire to go after rogue online poker companies. This just in over the e-transom, from the Poker Players Alliance:

Statement of PPA Chairman Senator Alfonse D’Amato in Response to Online Poker Cheating Scandals

Washington, D.C. (July 22, 2008) – Former Senator Alfonse D’Amato, chairman of the Poker Players Alliance (PPA), the leading poker grassroots advocacy group with over one million members nationwide, today issued the following statement in response to recent online poker cheating scandals.

“The Poker Players Alliance (PPA) is the political and public policy voice for poker players in America. Central to our mission are advocacy efforts in Washington D.C. and around the country to protect poker players from misguided and vague laws and to establish licensed and regulated Internet poker in the U.S. To be clear, the PPA is not a regulatory body for poker players or the poker industry, nor do we seek to be. We are, however, compelled to speak out when our public policy mission is potentially undermined by actions which present Internet poker in a negative light.

“Trust is paramount in poker. Sadly, this foundation has been undercut by admissions from two well-known online poker companies, Absolute Poker and Ultimate Bet, that cheating has occurred on their poker sites. The Poker Players Alliance condemns any and all cheating in poker no matter the forum in which it is played. Because of the current legal uncertainties and the lack of federal regulation and oversight, it is especially troubling when cheating occurs in online poker. This has created an untenable atmosphere and has denied the proper means to investigate allegations, administer due process and then apply appropriate penalties for the wrongdoers. We urge these companies and their regulating authority, the Kahnawake Gaming Commission, to provide a full and transparent accounting of these breaches of the public trust to help lift the black cloud that has been placed over the industry.

More…

Happenings this evening, while I make this part small so you can read all the good stuff below:

The $5k NL Shootout final table is down to headsup. The current chip leader winner is Phil “The Chairman” Tom. His son, Scott, was the founder of Absolute Poker, and we know how that turned out. (Readers may want to insert their own superuser jokes here). Greg “FBT” Mueller is in a close finished 2nd, while Leo Wolpert was recently eliminated in 3rd.

More…

Hey Jen, check it out … Pauly has some interesting thoughts on the matter: [via Wicked Chops daily email]

If you play online poker (especially if you are one of the blind fools still playing on UB), it’s in everyone’s best interest to spread the word on this important thread…

Superusers and Silence: How UltimateBet let players get cheated for millions by Steven Ware & Cornell Fiji (2+2)

One of the more interesting things to me, however, is a comment from Change100:

Funny, how on the day you post about the UB cheating scandal, Card Player.com is running these two headlines:

“Absolute Poker Offering Up to 100% Reload Bonus”

and

“Ultimate Bet RAI$E Program Gives Money for Points”

Duly noted. And that, dear readers, is something to keep in mind as you follow the WSOP on the internet this summer. We know your company internet time is limited, after all … and though we “professional” bloggers don’t have nearly the resources of the big-boy poker media, you can probably trust us more not to greedily lead you astray.

Though we make our livings, too, covering poker, it was only a few years ago that we made virtually no money whatsoever … we did it just for funsies and booze/tax deductions … and because of these faint but not-too-distant memories, it’s a little easier for the independent bloggers out here to be semi-principled and give you coverage not driven by the pursuit of potentially dirty cash. Drugs and hookers notwithstanding, of course.