According to this Bluff Latino America piece, there were some arrests made when the night shift employees grew suspicious and asked the police to stop it.

According to, now former employees of Pitbull Gaming, the owners decided to tell the night shift that they were going to make maintenance to the building. The night shift crew were suspicious about this and decided to stay to see what was really going to happen. The employees saw how a truck started gathering all the office equipment. This is the moment when employees went to the police and explained the situation and went back with the police in order to stop the process. Apparently, there are some arrests and right now the employees are in court explaining the situation to the authorities, to explain them that he is in a “flight risk” situation and should not let the owners out of Costa Rica.

Those looking to cash out from Pitbull Poker may have to wait in perpetuity.

From LasVegasVegas:

Pitbull Poker has seemingly closed its doors for business.
Players can visit the website but are unable to login to the poker client, and sources say the owners in Costa Rica were seen moving out computers in the middle of the night.

Pitbull was originally launched under WSOP.com, a domain registered by former Binions employee Federico Schiavio … Recently Pitbull Poker had been accused of having “superuser” accounts, similar to the Absolute Poker scandal, in which one player can see everyone else’s hole cards.

WSOP.com was one of the first big post-boom poker lawsuits … with Harrah’s successfully wrangling the domain name from the old Binion’s tech guy who held onto it after Binion’s handed over the keys to the WSOP.

Didn’t really see this one coming, but Joe Sebok explained in great detail why he made the decision to join the UltimateBet team. His latest blog post on PokerRoad starts with his skepticism about joining UB when he was asked on previous occasions, and it ends with the reasons he not only agreed to be a sponsored player but a consultant for the company in charge of media and operations.

The stipulation for joining the team came with wanting to ensure that the company moves forward – away from the scandal – in a positive direction and maintains a spotlessly clean reputation and record. Feeling responsible to the poker community that is part of PokerRoad, he wanted to be sure that he will represent a company that he believes in and one that the poker world can again trust. And to show that UB is willing to be as open as possible, the company has agreed to let Sebok’s first priority be the release of all hand histories associated with the scandal and the names of those paired with those accounts. Though KGC wanted no part of releasing the names of Russ Hamilton’s 31 co-conspirators, UB seems to have changed its mind on the subject.

Sebok wrote:

The first order of business with my position at Ub has been to help aid in the release of not only ALL of the hand histories from the super-user scandal, but also the accounts that were used to perpetuate the scandal itself and the actual physical names of those individuals who we believe to have been directly involved in disparate ways with the actual cheating. As most of you know, two-thirds of this has now been accomplished. Please take this as a first step in showing that things will be different at UltimateBet moving forward. I commend Paul and the management team over at Ub for being open to this release and making it happen at my insistence . They deserve all the credit in the world today in taking these first steps in ensuring that this case gets closed, and closed correctly.

As soon as the Kahnawake Gaming Commission released its final decision in the UltimateBet cheating scandal, the questions started hitting. Most of them concerned the secrecy around the list of 31 names said to be associated with Russ Hamilton. A discussion with Chuck Barnett, member of the Board of Supervisors of Mohawk Internet Technologies, provided his reasons for not releasing that list of names.

Mr. Barnett first told me that implicating Hamilton in the scandal was not a problem, as it was “very clear” that he was directly connected and responsible for the crimes being alleged. The names of the 31 individuals associated were another story, he says. The Commission had lengthy discussions regarding the release of those names and ultimately consulted their legal team and law enforcement officials.

On the legal front, they deemed it a civil liability issue, as the suspects are directly linked to Hamilton or the 117 accounts listed BUT there is the possibility that they had no knowledge of the scheme. If they were accused and found to be completely oblivious to or innocent of the crimes, there would be liability in falsely accusing them. There is also some question as to each person’s level of culpability, which can’t be known until they are questioned by the proper authorities. And per law enforcement, naming the individuals would impede a criminal investigation, as anyone named may be able to flee the country, hide, etc. With all things considered, the KGC made the decision to withhold the names.

When asked about the law enforcement agencies involved, Mr. Barnett wouldn’t say much. Legally, all he said he could say was all information from the KGC investigation was turned over to “law enforcement,” which had expressed a distinct interest in pursuing the case. He could not say, however, whether those were Canadian or U.S. authorities, only that there were discussions with “regional and national” agencies.

If/when indictments are handed down or prosecutions are made, or if some other permission is given by law enforcement, the KGC will make public the names – and be happy to do it. Until then, based on overwhelming advice, the list will remain a mystery.

The Kahnawake Gaming Commission’s investigation into the UltimateBet cheating scandal has been concluded with the release of its final decision. The 11-page document does provide some new information.

• In total, Tokwiro, owner of UltimateBet, refunded $22,054,351.91 to players affected by the cheating incidences.
• Tokwiro paid $1.5 million in fines, plus the costs of the investigation, to the KGC.
• Tokwiro is on a one-year “probation” period, during which time it must provide all details of daily operations, including financial and gaming records.
• Going forward, Tokwiro must maintain three sets of web/game logs, one of which will be housed at the offices of the KGC.
• All officers, directors, shareholders, and key people associated with Tokwiro must be known to the KGC.
• There were 23 accounts and 117 usernames used in the cheating.
• Much of the stolen money was disbursed through player-to-player transfers on UB.
• Russell Hamilton, associated at the time with eWorld Holdings Group, was primarily responsible for the scandal. The “vast majority” of the IP addresses used were directly connected to Hamilton.
• Hamilton’s actions that constituted “criminal behaviour” were associated with 31 other individuals, whose names were not released in the document.
• All information has been provided to law enforcement authorities to determine if criminal charges can be filed.

The entire decision can be accessed here by clicking on the “News” link.

The accompanying press release stated:

The decision released today reviews the corrective actions that have been taken by Tokwiro over the past 12 months, and concludes that Tokwiro has provided sufficient evidence to justify the continuation of its license to operate, subject to a number of additional conditions of licensure.

“Despite the unfortunate circumstances that resulted in this cheating, we are satisfied that the actions taken by the Commission provided an equitable result for affected players – our first priority. We remain optimistic that this experience and the lessons learned from it will result in a higher standard of gaming regulation for companies licensed and regulated within the Mohawk Territory of Kahnawake and elsewhere,” said Chairman Montour.

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.

There seems to be a cheating scandal brewing at Pitbull Poker, or at least a group of well-documented incidents that don’t sit well with players, according to an ever-growing thread on 2+2. While they can’t seem to pinpoint what is wrong – not quite a superuser situation – many players are citing the fact that hand histories aren’t easy to examine, they sometimes disappear from the site, and hole cards that sometimes appear randomly.

It’s a bit confusing, but Poker News Daily seems to have broken down the allegations of superuser accounts, stack shaving, odd hand history formats, and software glitches. The latest, as of a few days ago and just before the topic was closed by 2+2, original poster chesterboy wrote the following:

I believe all relevant people and companies have have been identified.

If there was wrongdoing, I believe I should be hearing back from some people that can verify the stories, especially if the sweatshop story has any truth to it.

If there was no wrongdoing, I am now back in productive dialogue with [Network Manager Dave Brenes], and we should be able to verify these things in a somewhat timely manner.

I am sorry things had to get this unpleasant to get an appropriate reaction from pitbull. So far the only verified shortcomings of pitbull are poor communication and slow response times. Kevin, while having a questionable history has not yet been shown to have done anything wrong here. I too do not have a perfect past though it may not show up on the internet so easily. We can’t condemn someone in this case for past wrongdoings.

They have been misleading regarding licenses but this is standard for the industry and not something I intend to pursue if there is no evidence of cheating on the site. I play in a state where poker is banned so it benefits me that some companies are willing to bend the law. Being that they are in Costa Rica it is possible they have not broken any laws.

Anyone have any history with Pitbull? Does anyone even play at Pitbull?

Howard Stern wasn’t the only one to join the PPA this week (aka “National Poker Week”). Caught up in the poker-politicky whirlwinds emanating from Washington DC, Russ Hamilton also became a member, as seen here:

Says Hamilton, according to sources plausibly fabricated out of thin air: “Joining the PPA is the right thing to do. It shows you are a good person who really cares about protecting poker players from internet malfeasance. We need US regulation to ensure a fair playing field for all, and so we can appropriately punish anyone who might steal 10s of millions of dollars from unknowing American players. Ha ha ha ha! LOL.”

Hamilton says he also plans to sign the Poker Petition (350k electronic signatures and climbing) and may even submit a video to MyPokerStory.com.

“Mine is a really good one,” he says.

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 card pictured here, according to @Andy_Bloch, was actually in use and in play at his table during today’s $5,000 NLH-Shootout.

Hmm, despite what some Batfaces may contend after a particularly good home-game run in 2005-06, I don’t know enough about card-marking systems to tell if these scuffs are a matter of defective product or an overzealous cheater. I’d tend to think the former — when you use a bajillion decks, there’s gonna be a bad one in there — but this pic is not the first murmur of marked cards at the 2009 WSOP.

But usually it’s in the high buy-in mixed games where the dangers occur (and floormen are operating on high alert). For example, smudges and nail marks were reportedly found on decks in the $10k 2-7NL-1D (won by Phil Ivey), where at least one specific player was targeted for enhanced interrogations intensified scrutiny.

We’ve called him the Bernie Madoff of Poker, but really, that moniker may no longer be apropos … because Bernie’s in jail. Now he’s more like the OJ Simpson of Poker … a man who most believe has so far gotten away with a shameful crime. Sure, no one has died yet, but honestly, it’s only a matter of time, isn’t it? Folks are still being protective of names, but I keep hearing stories of people who were ripped off by Russ Hamilton the way Mike Matusow claims he was … playing heads-up matches, losing, having Hamilton ship the money back to them, losing again, repeat … pay him off in cash. The results have been mortgaged houses, broken marriages, dangerous drug binges, and near-nervous breakdowns. We are talking very real lives here being very really fucked up … and all accuse the same man, who has thus far dodged criminal prosecution.

What makes it worse for these folks is that they haven’t gotten any refunds from Ultimate Bet — because either they paid off their “debts” in cash, or they too have been flagged for further investigation because of the large money transfers between them and Hamilton. So with that in mind, and some $60 million that would otherwise be in the Poker Economy unaccounted for … it’s always interesting to know what this man who has been convicted of nothing (and, sadly, charged with nothing) is up to.

Micon from Neverwin spotted him recently playing 2/5 NL at Red Rock:

Elsewhere around town, reliable sources tell us Hamilton recently played a bar freeroll at one of the pubs at Flamingo and Jones. (Still seeking confirmation on the bar’s name.) No buy-in and no prizes beyond bar tabs and food coupons. Supposedly playing with him in this same event (about six weeks ago?): Layne Flack.

No word on whether either of them made the final table.

More Matusow on Hamilton’s impact here. (Scroll halfway down.)

UPDATE: The bar where Flack and Hamilton were spotted playing a freeroll is Torino’s.

This is more than just Rumorati … it’s based on actual purported facts and second-hand semi-verified info:

Word is that the IRS has been in direct contact with at least two important and well-informed online pokerers who may or may not have important data on Russ Hamilton and the money stolen via Ultimate Bet. And this is not just some computer in Washington DC sending out form letters — there’s apparently a special agent in Nevada currently investigating the case.

What they’re interested in is 20 million untaxed dollars. And as is starting to get revealed since RawVegas went commando with their cameras, there is clearly more to this case than just an online poker cheating scandal and subsequent tax evasion … there could be some money laundering involved … which is kinda funny (not funny ha ha) because money laundering was one of the primary reasons given for the UIGEA … and now we have an example of how the law to prevent it may indeed have facilitated it.

I don’t know enough about how IRS investigations work to know what kind of teeth this thing really has — but I’d like to think that so long as the Feds keep an eye out for one-way tickets to Costa Rica by any R. Hamilton’s … in the end, one way or another, his fate is not going to be left in the hands of the Kahnawake.

Must-see … via Wicked Chops … the RawVegas red carpet crew gets some face-to-face time with alleged Ultimate Bet supercheater Russ Hamilton (wearing a clubUBT.com visor, interestingly enough) to see what he has to say about being the Bernie Madoff of Poker:

Watch RUSS HAMILTON UltimateBet Super-User Cheating Scandal (Exclusive Video) on RawVegas.tv

Kudos, btw, to the WCP/RV guys for reminding us that old school gotcha journo-ing does have a purpose.

WARNING: This is one of those videos (and a follow-up) that some of you might see as “3 minutes of my life I’ll never get back”. For those of you with time to spare … (unintentionally?) funny vid from a young British chap named King Gamble … er-3 on what you need to be a “cool” Texas Hold’em player:

And here’s his strategy guide on how to win at poker:

And probably most fascinating — though this one will take more than 6 minutes of your life — is the kids for-educational-purposes-only lesson on “How to Cheat at Poker”:

I think I like the painting chips method best. This kid clearly has a future as a poker blogger, and afterward we can go play with our Star Wars action figures! How can you have any pudding if you don’t eat your meat?

This was my “career horoscope” yesterday:

Assuming you understand others is a big mistake. Bypass the analysis and stick to your own work.

Oops, but oh well, too late now … The podcast is up.

Because Gary Wise relies on me to tell him and his listeners how to think Hevad Khan canceled … (right)click here to listen to/download the entire episode (including the opening segment with Dewey Tomko) or press the buttons below to hear my segment — where GW hems and haws as I analyze the 60 Minutes and Washington Post pieces, then speculate wildly on the cheating scandals and their relationship to the present business/legal/political landscape and what it all may or may not mean for the future of the entire world! poker industry.

Wise Hand Poker (feat. Dan from Pokerati) 42:08
RoundersRadio

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Dan Druff over at Neverwin breaks down the Paul Leggett memo in a way that might make some think the AP/UB scandal is still going on, or at least a cover-up is:

* Tokwiro agreed not to prosecute the perpetrator in the Absolute Poker cheating, and to protect that individual’s identity, because this was the only way to ensure that the ability to cheat was fully discovered and disabled. Because of this decision, AP could continue operating and begin to reimburse affected players as quickly as possible.

Pretty sweet deal for the guy, huh? Wouldn’t you like to work for a company that will agree not to prosecute you for stealing millions from them, provided that you just show them how you did it, if caught? There is zero chance that this is true. It would have been easy for them to deconstruct this after-the-fact without this asshole’s help. Obviously they are protecting him either due to continued association/affiliation (likely), fear that he will spill the beans on everyone and everything else there (also likely), or both (most likely).

Must-read for anyone who wants to understand what all the hubbub is about.

Nat Arem sure has sources. He recently received a forward of an inter-company memo from Tokwiro Enterprises COO Paul Leggett regarding the upcoming 60 Minutes story. Leggett has reason to believe that there will be a bias against Tokwiro and its companies, going further to say that online poker will emerge with a bad reputation. Thus, they did not appear on camera for interviews. (A little like saying that the jury has a bias, the judge is going to declare me guilty, so why defend myself?)

Leggett wrote:

“We have every reason to believe that the 60 Minutes producers are intent on portraying the online poker industry and our companies in a negative light, and we do not expect that the program will be either fair or balanced.

Because of 60 Minutes’ apparent bias against Tokwiro and online poker, we have decided not to appear on camera. We have, however, had many conversations with the program’s producers. We provided them with extensive background materials and documents, and we answered questions on-the-record, but off-camera. Despite all this, it is not likely that our views will be properly represented. Therefore, it is important that all of our staff know the following facts about our company:”

The remainder of the memo states some facts about Tokwiro Enterprises and the cheating scandals, most of which were released to the public in UltimateBet, Absolute Poker, or Kahnawake Gaming Commission press releases or statements.

The tone of the memo and words chosen by Leggett indicate that the 60 Minutes piece could portray online poker in a bad light. In fact, what Leggett fears is that Tokwiro and its online poker entities will look bad. Well, that is entirely possible because the way in which the scandals were handled was bad, and if that comes out in the reporting, who is really at fault, especially when the company in question refuses to go on camera with a statement and show otherwise? And in truth, what is said about AP, UB, and Tokwiro really doesn’t reflect on the entire online poker world, and there still remains some hope that the reporters for 60 Minutes and the Washington Post will make that clear distinction.

The day that UB and AP finally merge to create the Cereus Poker Network, comes this from the 60 Minutes section of CBSnews.com:

THE CHEATERS – 60 MINUTES and The Washington Post reveal how online poker players suspecting cheating were forced to successfully ferret out the cheaters themselves. That’s because managers of the mostly-unregulated $18 billion Internet gambling industry failed to respond to their complaints. Steve Kroft and The Washington Post’s Gilbert Gaul report. Ira Rosen is the producer.

It’ll be the first story on this coming Sunday’s 60 Minutes broadcast, and should be available online by Monday morning.

Reminded via a Tiffany Michelle MySpace status update — “Excited about the Cereus launch this week!”:

The player pools, tables, tourneys, etc. from Absolute Poker and Ultimate Bet magically merge today.

Trying to keep an open mind … because theoretically it is possible that the combination of two sites caught in the biggest cheating scandals in the nascent history of the online poker industry — having learned painful lessons firsthand — could become a paragon of integrity and security, a model for fully legal American online poker in the future.

But I just can’t help to think back to the Dallas underground … when a saturated market had rooms and games beginning to merge, two shady operators joining forces seldom led to anything good (save for some pretty juicy opening-weekend tourneys).

That’s my bias, I suppose … but with that in the back of my mind, I can’t help but think of how one of these sites seemed rotten at the core (with the exception of Mark Seif, I’ve yet to hear any former employee say anything good about Absolute), and the other … well, sure, they’ve changed management and have plenty of good peeps working for them (Annie Duke, Phil Hellmuth, Mean Gene, et al.) … but the top of the pyramid hasn’t really changed as far as we can tell. And with all due respect to those who are just trying to throw good poker times … the mysterious, closely-guarded nature of Tokwiro+Kahnawake+UB+Chief Joe operating on the protected lands of the Mohawk Nation (with offices in Costa Rica) … that’s the definition of shady! Sorry, it just is.

Still, with $22 million in refunds, the action’s gotta be good.

If there seems to be a little more action than usual on Ultimate Bet these days, it’s because a lot of players have been given new cash with the promise “this time we won’t cheat you out of it.” Donkey Bomber got a rebate of about $1,400 — see, Tom, the economy is already looking up, as you just got back what you lost to me on the presidential election — which showed up unexpectedly in his account along with an email with a bunch of legal documents attached. That’s small potatoes compared to the couple hundred-k that Josh Arieh supposedly got refunded.

(If you were someone who unknowingly lost money to the cheating, wouldn’t you love to study the replays of the hands where your action seemed to go bizarrely awry?)

Further reports say at least one of the above-mentioned refundees has been playing with it, and winning a lot. Considering that most new players on UB clearly haven’t done some basic searching on the internet, it’s plausible that the games here are particularly soft these days.

I really wanna believe what Annie Duke says about the fantastic security now in play at UB … and heck, beyond playing there, might Pokerati actually be able to make some affiliate bucks off any pimpage? For now, of course, all we’ve got to go on giving necessary reassurances is an AP/UB infomercial explaining it all that has since been taken down once people actually started to see it.

Of particular interest to me in this series of Tokwiro-sponsored videos was Leggett’s confirmation that no one was or will be legally prosecuted in the Absolute Poker scandal.

When the perpetrator was discovered in the AP insider cheating scandal, he was given protection from prosecution in exchange for information about the crime. If he told Tokwiro exactly how he got the hole card information, his name would not be released to the public and no legal action would be pursued. Leggett said that the Kahnawake Gaming Commission still reserves the right to prosecute if they so choose, but Tokwiro will not.

Leggett noted that the $800K that was stolen during the crime was still in the cheater’s online account and thus confiscated by Tokwiro to repay customers. However, Tokwiro had to pay an additional $800K out-of-pocket in interest to those customers. I guess the perpetrator’s inside info was worth nearly a million bucks…

Also interesting was the specific mention of Scott Tom in order to clear his name. Leggett said that he was only implicated because his IP address was used by the cheater. Really? So, does this make AJ Green a.k.a. AJ Grimard the one and only perpetrator, as no effort was made to clear him? And I suppose the lessons learned in the AP scandal better prepared Tokwiro to identify the problems in the UB scandal, not needing any information from Russ Hamilton and allowing prosecution in that case.

This is discussed in the video below (Part 2, Section 2) and starts at the beginning:

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.

Those of us who may or may not have taken pleasure in throwing a killer-turned-colluder-turned-killer-again under the bus can breathe a slight sigh of relief, knowing there’s one less person out there who might want to do us harm, with his release from prison now looking virtually impossible.

James McDaniel (aka “Black James”) has had eight new charges pressed against him — including [accessory to the?] murder of Meaghan Bosch. If you recall, he was a suspect in the SMU coed/railbird-hottie’s gruesome death, but it was only parole violations that sent the underground poker room operator back to prison (for eight additional years on his ex-cop-killing sentence).

He goes to trial on the new charges in February.

I hate to mix poker talk with murder, but considering that Meaghan gave her life, I have no problem knowing I’ll never get a chance to get back the $300-$400 he stole from me at Choctaw. Ha ha! Fuck you, you Queens-cracking, colluding cheating bitch! Karma, dude.

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).

Another issue of multi-accounting — not in a collusive way, but simply having multiple accounts and/or letting someone else play on it … initial suspension was for 6 months … but Imper1um appealed to the PokerStars judiciary and got his sentence reduced to 3 months.

I was shoring up on some fundamentals just last night, re-watching Phil Hellmuth’s Million Dollar Online Poker Secrets. This whole video series is pretty funny now, because it was recorded in 2004, in the early days of the poker boom (when online sites were making a whopping $100k a day!) … and you see a much younger PokerBrat not being too bratty to the folks who shelled out $25 or so for his winning wisdom.

Anyhow, it was really just background music here at Pokerati headquarters until I came across the chapter about “Online Cheating”. Though this vid was not a UB pimp-fest (Full Tilt had just started to pioneer the concept of logoing up the pros), it’s clear by references to his play at Ultimate Bet (in other chapters) that whatever relationship he has/had with the site was starting to take shape … which makes the comments below all the more funny/ironic:

“As far as the sites being crooked or not, no,” he says. “It just drives me crazy when I see a lot of people complaining about being cheated. I just shake my head and say, ‘I’d like to see their hand histories.’”

Be careful what you wish for, no?

Interestingly, his advice for if you do think you are being cheated … simply leave the table and go somewhere else. “Click out of that game and click into the one right next door.” Fair enough, which is why I hope he understands why some of us still have a hard time recommending the site he represents.

NOTE: I finished up $68 on PokerStars while watching this. Thanks, Phil!

The Kahnawake Gaming Commission (KGC) has released its initial findings in the UltimateBet scandal. There are some jaw-dropping facts in the statement, like the $6.1 million figure that the KGC states has been reimbursed to cheated UB players, which does not include more reimbursements that are to commence on November 3rd. And Russ Hamilton is officially named as the main person responsible for and said to have benefited from the UB scandal.

Interesting to note that the KGC chose to release this statement as the Aruba Poker Classic gets underway…

(Thanks to Kevin Mathers for the heads-up, and MajorWager.com for being the first website to have reprinted the statement in full.)

The entire statement is as follows:

Kahnawa:ke Gaming Commission Imposes Sanctions on Ultimate Bet with Regard to Cheating Incidents

For immediate release

(MOHAWK TERRITORY OF KAHNAWAKE – September 29, 2008) Kahnawa:ke Gaming Commission (”KGC”) Chairman Dean Montour today announced the initial findings of the audit conducted on licensee Ultimate Bet, as well as the sanctions to be imposed.

According to KGC Chairman Montour, the Commission has reviewed the information provided to it over the past months from Frank Catania of Catania Gaming Consultants of New Jersey; Gaming Associates, an Australian game testing company; and the permit holder. Chairman Montour said, “The Commissioners have made several findings of fact with regard to the cheating that occurred on the Ultimate Bet web site that included the identification of some of the individuals responsible for these incidents as well other significant violations of the Kahnawa:ke Interactive Gaming Regulations.”

The Commission found clear and convincing evidence to support the conclusion that between the approximate dates of May 2004 to January 2008, Russell Hamilton, an individual associated with Ultimate Bet’s affiliate program, was the main person responsible for and benefiting from the multiple cheating incidents. Furthermore, the KGC is currently in contact with the appropriate law enforcement agencies and intends to fully cooperate in the prosecution of all individuals involved in the UB cheating incidents.

Mr. Catania states, “My intention is to provide further information as it is uncovered, although the information already submitted to the KGC relating to Ultimate Bet warrants the KGC taking the actions it has today. Any further evidence uncovered with regard to cheating, withholding or destroying records in our continuing investigation will be reported to the KGC and the proper agency for appropriate action.”

As a result of the KGC’s findings of fact, the Commission called a special meeting, at which time it was unanimously decided to impose the following sanctions against Ultimate Bet:

1. Ultimate Bet is directed that by November 3, 2008 it shall, under the close supervision of the KGC, its employees and agents, commence refunding all players accounts found to have been adversely affected by the cheating of individuals under the control and supervision of the licensee. It is estimated that Ultimate Bet has to date reimbursed $6.1 million USD to players’ accounts found to have been adversely impacted by the cheating activity

2. Ultimate Bet is directed that by November 3, 2008 it is to remove any and all persons deemed as “unsuitable” by the KGC from all involvement with the company, which shall include all levels of ownership, management and operation. Ultimate Bet during that time period until November 3, 2008 is required to continue to provide complete details of all day-to-day operations of the company. These shall include financial as well as daily gaming records to Frank Catania and or his assigns. It is anticipated that this action will provide full disclosure and prevent any further improprieties or wrongdoing from occurring while ensuring that the public is being offered fair and honest games and all player monies will be protected.

3. Ultimate Bet’s control system as defined in section 9 of the Kahnawa:ke Interactive Gaming Regulations has been modified to prevent any further incidents of cheating or related improprieties.

4. Ultimate Bet will not delete or modify any logs including but not limited to web logs and game logs as required by the Kahnawa:ke Interactive Gaming Regulations and will continue to have those logs immediately available for inspection by the KGC or its agents.

5. Ultimate Bet shall immediately pay a fine of $1.5 Million USD to the KGC for its failure to implement and enforce measures to prohibit and detect fraudulent activities.

6. Ultimate Bet’s failure to comply fully with these measures will result in the immediate revocation of its KGC gaming permit.

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.

ItsOverJonny wondered in comment below whether or not the new ShuffleTech noise machines auto-shufflers actually kept a count of the cards being riffled … I wasn’t sure (kinda assumed they did), so, because apparently this is what I like to do at 6:30 am on Saturday night/Sunday morn, I wrote to the folks at ShuffleTech (which happens to be based in the small village outside of Chicago where I was born) and they responded:

Dear Dan,

I’m happy to answer this or any other question, particularly for anybody from Shuffle Tech’s home town!

The ST-1000 does not count cards. Most of the machines that do in the casinos are also scanning the faces of each card, which enables those machines to not only count but also identify any missing card. You can understand how that could be abused in a private, unregulated environment: a clever programmer could reprogram the machine to identify the location of any particular card in a deck, and in the case of the casino machines (which function differently than Shuffle Tech) place certain cards in a certain position in the deck.

I hope this answer the question, and our reason for avoiding any mechanism or feature that could potentially be abused.

Best regards,
Rick Schultz

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…

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?

The official announcement came on July 29, but the post has been delayed as I decided how or if to mention it.

After Tiffany Michelle’s impressive run in the 2008 WSOP main event and 17th place finish, she has been offered a sponsorship deal by UltimateBet. She is now part of the site’s roster of pros, which includes Annie Duke, Phil Hellmuth, Cliff “JohnnyBax” Josephy, and James “POKERPRO33” Campbell.

For Tiffany’s poker career, this may seem like a positive step, as she will be able to play more poker – live and online, cash games and tournaments. She will have an income regardless of her poker results, which will do well to make up for the lack of future income from PokerNews. After having previously defended her decision to wear the UB patch on PokerRoad Radio because she felt that the site treated her well during the main event, this announcement came as no surprise.

Even so, the Tiffany Michelle/UB partnership did come as a disappointment to many.
More…

Despite the fact that things are finally happening and some progress is being shown with regards to the UltimateBet investigation, it seems that everyone involved wants to suddenly be a part of bringing the scandal to some sort of resolution. After six months of acknowledging and investigating and hoping it goes away, the Kahnawake Gaming Commission, Gaming Associates, Frank Catania, Tokwiro Enterprises, and UB all care deeply about getting this done.

Funny how when a third party is brought in to investigate Tokwiro Enterprises, owner of UltimateBet and Absolute Poker, Tokwiro suddenly concludes its own UB investigation days later. Wait, Tokwiro was investigating its own company’s scandal? Sounds a little like the U.S. Government…but I won’t get into that here.

In a statement published on the UB website, Tokwiro comes to the surprising conclusion that it had no part in the cheating that took place on UB prior to the purchase of the company. It notes that there were 19 accounts and 88 usernames associated with the “complex web of player-to-player transfers and withdrawals” that took place to scam real players on the site, and refunds to cheated players are in the process of being determined and issued. All results of the investigation have reportedly been turned over to the KGC.

Here is the statement in full:

MONTREAL, CANADA – (July 25, 2008) – Tokwiro Enterprises ENRG (”Tokwiro”), proprietors of UltimateBet.com (”UB”), one of the ten largest on-line poker cardrooms, today announced that it has concluded the investigation into allegations of unfair play on UB’s web site.

Tokwiro has compiled complete forensic evidence including the IP addresses, devices, transfer and withdrawal histories, and names associated with the player accounts that benefited from illicitly viewing hole card information. The results of Tokwiro’s internal investigation have been turned over to the Kahnawake Gaming Commission (KGC) and its auditors, as that regulatory body continues its independent investigation. These results are in addition to the data which Tokwiro has already shared with the KGC.

Tokwiro has identified a total of 19 accounts and 88 associated usernames that were involved in the cheating, including the accounts that were named in Tokwiro’s publicly posted investigation updates of May 29, 2008 and July 8, 2008. The same perpetrators that were previously identified controlled all of these usernames. There are no new perpetrators involved, only new usernames. Usernames were changed many times over the course of the cheating scam in an apparent scheme to avoid detection. Our complete list of usernames involved in the cheating scheme has now been turned over to the KGC, and the Company does not expect to uncover any additional usernames.

Paul Leggett, Tokwiro’s Chief Operating Officer, said, “Make no mistake: our management team is outraged that this cheating occurred on our site through illicit software placed on the UB servers prior to our purchasing UltimateBet. Tokwiro is aggressively pursuing legal avenues of redress in order to protect and compensate our players and the business. Rest assured that we will release more information to the poker community and to the public at large as we enforce our and our players’ rights.”

“With respect to refunds to the affected players, we are continuing our analysis in order to determine the refund amounts. We will move forward with another round of refunds in the weeks ahead. We thank the poker community for its invaluable contributions to this investigation and assure it that we remain committed to fully investigating any claims of fraud on our site,” Mr. Leggett said.

The investigation revealed that the perpetrators logged into the client software, using an account that had the ability to view hole cards. The ability of a specific account to view hole cards was enabled by illicit software that was placed on the UltimateBet servers prior to October 2006, which was before Tokwiro acquired the business.

The account that was used to view hole cards never actually played in a game. Instead, the perpetrators used hole card information gained from logging in with this account while playing on other accounts, which thereby benefited from the cheating. The money won by the accounts that received hole card information was then moved around and off the site in a complex web of player-to-player transfers and withdrawals. This contributed to the complexity of Tokwiro’s efforts to uncover the truth.

Mr. Leggett concluded: “We cannot over-emphasize the fact that Tokwiro and its entire management team had no knowledge of the illicit software until it was revealed by our investigation; and no one associated with Tokwiro was involved in the cheating scheme at any point.”

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…

UltimateBet has been dancing around this superuser/cheating scandal for more than six months. Everything was delayed – acknowledgment of the allegations, investigation updates and results, and developments like the alleged ties of Russ Hamilton to the scandal.

Annie Duke has become the spokesperson for UB, and she has had to conduct interviews and give politically correct answers to questions for months as UB has come under fire from every direction. While she is attempting to be the face of UB, as Phil Hellmuth clearly dodges the issue and avoids speaking publicly about it, the company itself is allowing Duke to do what its Public Relations Department – or ownership, for that matter – should be doing. Enough is enough.

Listening to a PokerRoad Radio episode from last week (dated 7/16/08), it became clear that Russ Hamilton will not be defending himself or issuing statements on the UB scandal or his alleged involvement in it. (The discussion of the issue begins approximately 30 minutes into the show.) Hamilton declined the opportunity to speak on the show and clear his name upon the advice of his attorney, though he invited Barry Greenstein and Joe Sebok to visit his home and discuss the issue privately. However, Hamilton’s attorney was there, too, and would not allow Hamilton to address the UB accounts supposedly connected to Hamilton. Greenstein and Sebok insisted that they were not taking sides but felt that Hamilton was genuine in his claims of innocence. Hamilton wanted people to know that when the investigation is complete, names will come out but his will not be one of them. And his attorney wanted to tell people, “Can’t you just wait a couple months?”

No. The poker community has been forced to wait long enough. It is time for answers. Not only does Hamilton need to come clean with any information he is privy to, but Annie Duke and Phil Hellmuth need to do the same. A source tells me that Duke and Hellmuth were aware that Hamilton was implicated in this scandal well before Nat Arem posted his personal investigatory findings. Russ Hamilton cannot seem to defend himself, so UB seems content to let his reputation be scarred forever – while claiming innocence from behind closed doors – while the investigation goes on…and on…and on. And UB seems to operate under the notion that no news is good news, and the less information that comes out officially, the better. Transparency seems to be a pipe dream as the story gets murkier by the day.

C’mon, UltimateBet. If there is actually a team of investigators on this issue, it shouldn’t take months to find answers. Your reputation in this industry is crumbling before your eyes, and as part of the poker community, you must step up to the plate and put your not-so-secret hole cards on the table. Show us some respect if you ever hope to get any in return.

(The opinions expressed in this post do not necessarily represent those of Pokerati. They are the sole ravings of a frustrated journalist.)

Posted this link in a comment down below, but really it deserves a little more pimpage … as this write-up by Change100 provides one of the best factual recounts and opinionated analyses of the whole Tiffany Michelle final table sponsorship saga. She tells a compelling story of girl-power gone awry, and the deeper Tiffany got, the more in over her head her agent may have gotten … all while having to make decisions affected by the emerging corruption of Ultimate Bet and escalating high-pressure tactics from frothing sponsorship-brokering wolves trying to mount her in the midst of her WSOP heater.

Jeffrey Lisandro, one of Tiffany’s backers, had been hovering around the Amazon Room all day on Day 6. The other, PokerNews owner Tony G., had already left Las Vegas several days prior. The UB scandal was blowing up, and so was Tiffany’s chip count. Personally, I was concentrated on the task at hand– reporting the tournament– but couldn’t help but notice all the little side conversations that were taking place in the empty back quadrant of the room, which, until only 48 hours prior, had been a sea of poker tables. PokerNews people and Tiffany’s agent, Katie Lindsay. PokerNews people and other agents. And Lisandro himself, putting his arm around Lindsay and walking off with her to have a private discussion. The war over Tiffany Michelle was in full swing as she sat 100 yards away, propped up on her knees, playing in the biggest game of her life.

I spent 8 years in the Hollywood machine and dealt with a lot of agents in my time. They are some of the most ruthless, yet sickeningly hardworking people you will ever meet. The client’s interest is your interest, and it is the only interest. Everyone else can go fuck themselves. Agents can piss people off and get away with it because they hold the keys to the castle by controlling the talent. Talent is the only real currency in Hollywood. Producers, financiers, studio executives, marketing divisions, publicists? Without the talent what do they have?

While I’m not so sure I agree with pinning so much blame on Katie Lindsay from Suited Connections — full disclosure: she’s a personal friend of California Jen’s, and I always saw her as one of the “nice ones” — Change has a little more understanding of how a cutthroat television world can work (a world that is new to poker even though we’ve been on TV for 5+ years) and has me wondering if Tiffany Michelle weren’t, at least indirectly, an unforeseen casualty of a delayed final table that noticeably upped the television stakes as we got closer and closer to The November Nine.

Oh, one other interesting thing … check out Change’s post right before this one. You’ll notice on that picture of Tiffany Michelle, posted before anyone knew of the brewing UB/PokerNews friction … the PokerNews logo is the most prominently displayed, even after she did her deal with Ultimate Bet.

An oddly timed official statement, released from PokerNews Mgmt:

PokerNews Official Statement
July 14, 2008
PokerNews Management
The last 48 hours have been a crucial and trying time for PokerNews.

On the outset of the World Series of Poker, we have been associated with an outstanding female poker player, who until a few hours ago, was the last woman standing in the original field of 6844 entrants in the 2008 WSOP Main Event. Official PokerNews representative, Tiffany Michelle, was one of the chip leaders for the better end of her run in the Main Event and was poised for a brilliant Final Table appearance that would make her the second woman in history to achieve such a feat.

As a company that truly believes in this industry and in the importance of supporting aspiring poker players, PokerNews sponsored her Full Tilt Poker into several buy-in events at this year’s World Series including the Main Event, enabling Tiffany to showcase her irrefutable talent and flair on the felt. However, a few days into the Main Event, several media outlets published reports and images showing Tiffany donning an UltimateBet.net logo during her play at the ESPN feature table.

It was later confirmed that without any consultation with PokerNews, Tiffany went ahead and signed a sponsorship deal with Ultimate Bet. While we welcome such sponsorship deals between online gaming operators and players, as a company we could see no reason as to why we were left out of such negotiations, especially considering the relationships that PokerNews has with all such entities. Tiffany was bought into the event by PokerNews and had a signed player contract with PokerNews Ltd. We believe, that based on advice from her agent that the contract may have loopholes; she went and made a deal with an online gaming operator that completely contradicted the trust that we had put in her, both as an employee and as a sponsored player. As an organization we felt completely sabotaged by Tiffany, her agent and Ultimate Bet.

More…

The UltimateBet Superuser scandal has taken a giant leap into the depths of criminal behavior. If anyone thought the May 29th statement was the end of it, sorry to burst your faith in integrity and good, um, faith.

Nat Arem, the rogue investigator who blew the top off the Absolute Poker scandal, has stepped in to assist with the UB investigation that never seems to end. And the most recent post on his blog, dated today, links some of the superuser accounts on UB to one of the site’s former owners, Russ Hamilton. Yep, that’s 1994 WSOP main event champion, Russ Hamilton. Supposedly, he no longer has a stake in the company, but there are conflicting reports as to his current involvement in UB business.

Here’s a brief excerpt from Arem’s blog:

But it showed that the registered address of at least some of the super user accounts belonged to Russ Hamilton, the former owner of UB.

I basically felt sick to my stomach. I talked to Russ on the phone a few times in the fall — brsavage got me in touch with him. We talked about how disgusting it was that this happened at AP. Russ expressed a strong opinion that he was going to do whatever it took to get things right and, at the time, I believed him that he was going to fight to get things at AP right. He even got me in touch with the guys at AP so I could go down there and meet with them on behalf of PokerNews and the community as a whole. This guy RAILED against the people at AP who were superusing.

Dave in Fairview writes in:

Dan … read on Pokerati about “the cheater” caught on tape. Has he been banned from Las Vegas – or, at least from the WSOP Tournament?

Dad, it’s not really cheating … it’s up to the player to protect their own cards. But it’s not gentlemanly. He’s attempting to do something he shouldn’t … and it’s a close call whether or not that constitutes cheating. But if a floor supervisor were to see it, they wouldn’t penalize the guy looking at the cards — they would simply warn the guy who is exposing his cards to be more careful.

These shots were taken on Day 2, and they show the player sitting to Pat Poels’ left trying to sneak a peak at his hole cards. I told Pat about this, btw, and like Tommy Grand or Joey Greco, I showed him the surveillance footage of the disappointing truth.

“It’s better that you know,” I told him.

But Pat reassured me that it’s OK, his opponent didn’t see anything, because “I’m very good at looking at my cards,” he said with a straight face as if he were being totally serious about a practiced skill. “Just ask Robert, he’s told me before when trying to sweat me he can’t see my cards.”

Pat is currently on break in Day 4 of the main event — 450k in chips with 350 players remaining, one of whom is not the guy at right.

Johnny says: Ask Dan to post about garbage men and chip dumping. He had some interesting ideas on conspiracty theories…

Indeed … today we moved from yellow-chip ($1k) threat level to orange ($5k) — with tighter than usual security notably apparent during the green-chip race-off today. After clearing out the fans then players, the perimeters around the table we’re extra secured: no media allowed in, no masseuses, no waitstaff. A couple people did wander in unknowingly and were quickly and sternly ushered out. It was all taken so seriously — making sure every chip was properly accounted for, one can only presume. For as empty and quiet as the entire Amazon room was — only about a dozen small-stakes cash games going — it was totally abuzz. Floorsuits half-running down the aisles, barking questions, answers, orders … dealers making sure the chip trays were aligned at the perfect angle … all done with a certain military efficiency that suggested they had done the dress rehearsal, and now it was go-time.

(Even in the hallways, I saw for the first time semi-armored chip carts, arriving empty, and by the end of the day returning full.)

The only non-tourney staff allowed in to the tournament area was the sanitation crew. On breaks, they pick up empty cans, bottles, discarded magazines, general poker waste, etc. while wheeling overstuffed black trash bags between the tables. For all the effort that went into protecting the integrity of the 2008 main event race-off, these necessary laborers were the security weakness should anyone want to engage in shenanigans. Pay these guys off with something akin to their annual wages and before you know it those garbage sacks arrive amid the floorstaff frenzy stuffed with a orange chips machine guns or even bigger and stun grenades … poof, a little slight of hand while cleaning, and whammo, a dirty player returning from break finds a few big chips tossed onto his stack or wedged between the felt and rail. At least that’s what I would do.

What, you think it doesn’t happen? Probably not … but it would make a good movie if it did.

Eric “Rizen” Lynch announced yesterday on his blog that he is no longer associated with the UltimateBet brand.

He chose not to release any details:

After a lot of reflection and thought, I have decided to separate myself from the Ultimate Bet brand. I hope that everyone will respect my privacy, as I wish to not go into the decision in any great detail at this time. At this point in time I just believe that the things I’m trying to accomplish in my career are not in sync with the Ultimate Bet brand.

There are many interesting levels to this. Eric chose to sign on with UB as the online poker site just barely came clean about its superuser cheating scandal, and it came just after Cliff “JohnnyBax” Josephy signed a deal with UB. Evidently, Eric took a lot of crap from the forums for his decision, and whether that had anything to do with his withdrawal from the sponsorship remains to be told. But whatever made him end the deal must have been of a significant nature because he did it even before the main event of the WSOP.

Oh, and for those who thought the UB statement concluded the superuser scandal, it is by no means concluded. UB was careful to send out their statement of resolution the day before the WSOP began this summer, but what was not widely reported was another statement posted on the website less than a week later. It quietly notes that their oh-so-thorough investigation that took many months was not so thorough and numerous accounts involved in the scandal may have been missed.

Click below for the hush-hush sweep-it-under-the-rug release:

More…

Though it’s not unusual for pros to show up late for WSOP tourneys, something was amiss during one of the last 1500s when Scotty Nguyen didn’t show up til well into the 100/200 level …

Apparently Scotty lost one of his capuchin monkeys. The fire department was still trying to get the the pesky little primate out of a tree when Scotty decided he just had to go. Not sure what the status is of said monkey, but one thing that is interesting is how the floor handled his depleted stack.

From Adanthar:

Naturally, Scotty was unhappy about that and asked the dealer why he didn’t have 3K. But at the WSOP, only late registrations get their full 3K chips (and get seated in Seat 10); everyone else gets a regular seat and then gets blinded off if they’re late, which is normal. Scotty, though, obviously didn’t like the idea of starting out with a 9 bet stack, said “I’m not playing”, and went off to find the tournament director. I think he just wanted to be allowed to unregister, but instead, a couple of minutes later, the floor showed up with a full stack and gave it to him. On the one hand, this is pretty much blatant cheating – it’s a free 1200 chips that nobody not named Scotty Nguyen would ever get;

Murmur?

(Thanks, Shamus, for the link.)

photo: Coding the Wheel

A declared working poker bot operation in Dallas, TX, and on PokerStars.

A fascinating (if not challenging) story that you can only presume would be of great interest to anyone in the online poker-room security biz, or anyone who wants to philosophize on the meaning of “good for poker”:

How I Built a Working Online Poker Bot, Part 3: The Million Dollar Pet Project

The programmer in question draws inspiration from Big Blue, the IBM supercomputer that challenged chess champ Gary Kasparov. And thus, at any given time online, here’s what you’re potentially up against:

Part 1
Part 2
Part 3

Cuong in Texas writes in with some beefs about a casino poker room in Oklahoma:

I was hoping you could shed some light on the Terrible Competence of Choctaw Casino. First, they lie about the numbers at the Choctaw Open, then will not publish results in Card Player, Etc or Send any other results to Poker groups on there Large Tournaments. I have contacted Managers and was told they were busy???WTF..Winstar always takes care of this quickly. I need results listed so my Investor can verify numbers. I will never play other Tournament at Choctaw Casino again. Please write a story on Choctaw so I can get others stories. Thank you,

Thank you … Can you tell us a little more about the numbers they supposedly lied about?

I do indeed have a story about Choctaw that I sadly haven’t finished writing yet. The last time I was there, I ran into Black James and his crew, who were extra-friendly with the poker room management. They took their seats at a 1/2 table (unable to convince us to play 2/5) and proceeded to remove more than half the money from the table in 45 minutes by doing a hyper-bet-collusion hit-and-run. That was obvious to me, and I suspect but can’t prove there might have been a little more than collusion going on when James’ no-look bet got an all-in reraise from my pocket queens and he pretended to be shocked to discover he had pocket kings.

Not at all suggesting Choctaw was in on any unethical behavior, but poker room operators were watching the action, so if they weren’t part of it, then what does that say about their ability to notice/put a stop to cheating. (James McDaniel, of course, is now back in prison for a parole violation connected to the deaths of a police officer and SMU coed.)

Anyone else have any Choctaw stories?

In the meantime, Cuonger, below are the results for the 2008 Choctaw Open, held last month in Durant, sent in by a fellow Pokeratizen:
More…

Pardon me while I work on posting here at Pokerati, but here’s UB’s long-awaited press release:

ULTIMATEBET ISSUES STATEMENT REGARDING UNFAIR PLAY
MONTREAL, CANADA (MAY 29, 2008) — Tokwiro Enterprises ENRG (”Tokwiro”), proprietors of UltimateBet.com (”UltimateBet”), one of the world’s largest online card rooms, today announced the results of its lengthy investigation into allegations of unfair play, which was triggered by concerns about an account named ‘NioNio’. Tokwiro has worked diligently in cooperation with its regulatory body, the Kahnawake Gaming Commission (”KGC”), and with independent third-party experts to conduct a thorough investigation that included a comprehensive review of hand histories and game data, thorough analyses of software and network security, and audits of its security practices and procedures.
More…

It has been reported (and noted by Kajagugu) that Cliff “JohnnyBax” Josephy signed with UltimateBet to join its roster of pro players.

The interesting thing here is that most sites release a statement about new signings with a quote from the player. I’m so excited to be a part of this team, or something generic like that. But in this case, the only statement released was from Annie Duke: “A Star Player is one who has an undisputed high level of skill, lots of integrity, and is well respected in the world of online poker. One look at his impressive record reveals that JohnnyBax epitomizes a Star Player and is the perfect addition to our roster of respected and talented poker players.”

Strange that Cliff has nothing glowing to say about UB yet.

Even stranger that Cliff would sign with UB right now. RIGHT NOW. With bloggers calling them out, forum posters in a tizzy, and the poker community as a whole awaiting a non-forthcoming and much-delayed response to the cheating scandal, he signs a deal with the site.

*shaking my head*

UPDATE: Cliff did post the following on 2+2:

“Please understand that I would not sign with UB if I was not confident in current management. My signing with UB is contingent upon a satisfactory resolution of the “superuser” issue. I am hopeful a press release detailing the entire situation goes out shortly, players are reimbursed and satisfied, and UB can move forward and give players what they want.”