Well that meeting happened yesterday and Micon was able to walk away with more than just some mental pictures of the documents. He actually got Makar to let him leave with one of the many emails that he made mention of during the interview. You can view that email and Micon’s thoughts of the meet-up over on the DonkDown Forums.

If you are still wanting some more information on the meeting then be sure to check out the DonkDown Radio show tonight at 10:30 PM ET where Micon will be giving more details and be answering questions throughout the show.

UPDATE: Meanwhile, UB COO Paul Leggett has posted his own response to the original Travis Makar interview here.

The full press release appears below:

Blanca Games, Inc. (Blanca), led by e-gaming entrepreneur Stuart Gordon, today announced that Blanca has acquired the Cereus Poker Network (Cereus), one of the largest poker networks in the world. The terms of the transaction were not disclosed.

Blanca’s acquisition of Cereus includes the Network operations, software, the absolutepoker.com brand, and the ub.com brand. Blanca has received authorization from the Kahnawake Gaming Commission (KGC) to complete the acquisition and operate the Cereus Poker Network.

Stuart Gordon, Chief Executive Officer of Blanca Games, said, “The acquisition of Cereus is a significant opportunity for us. Cereus is a major platform of well-managed assets. Over the past few years, it has created new brands, like ub.com, that are extremely well-positioned in the most desirable demographic in our market: players in the 20s and 30s age brackets. From our perspective, we have acquired a large, sophisticated online gaming operation with state-of-the art capabilities, ranging from compliance to business intelligence to online marketing to customer service. We see a tremendous growth opportunity in this deal and beyond, as Blanca seeks additional acquisitions in the market.”

Mr. Gordon further commented, “We are confident that the Cereus Network has found an excellent home in Blanca Games. Over the past several years, Cereus has developed into an outstanding platform, which is poised for significant growth. This transaction will benefit Cereus players and employees alike. We expect no changes in the playing experience on the Cereus sites, except for the improvements that will likely be the long-term result of this transaction.”

Commenting on Blanca’s priorities for Cereus going forward, Mr. Gordon added: “We intend to leverage the existing strengths of the Cereus Poker Network, particularly in the areas of security and customer service. Although we are impressed with many of the new security features on the Network today, security is and will remain our top priority. We’re also pleased with the efficiency and the player-friendly approach of Cereus’s customer service operation, but we will always be seeking to improve in this area.”

About Blanca Games, Inc. Stuart Gordon established Blanca Games, Inc. for the purposes, among others, of making acquisitions in the online gaming industry, including the purchase of the Cereus Poker Network. Mr. Gordon is the CEO of Blanca and is a pioneer in the online gaming industry. He is also the founder and operator of bingomania.com and Helix Gaming International, Ltd, which are licensed and regulated both in the jurisdictions of Kahnawake and Antigua. http://blancagames.com/

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

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

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

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

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

To be sure any seismic shifting and associated problems are not all about the WSOP, they just happen to be rearing their heads at and during it, because that’s how Big Poker works, with so much related to poker becoming apparent in Las Vegas during June and July more so than at any other time and place.

So what’s next? I know a few posts we’ve got cooking that some might find interesting … and a few other things I am hearing about that may or may not check out to be valid. I’m not talking about a Poker Apocalypse, mind you; just the possible small little implosion of the current (American) poker world as we know it, specifically the online poker world. Different. But clear and progressively escalating signs of an industry doing as Vegas has always done, repeatedly, for nearly 20 years.

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

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

Crap, if he’s moving in I guess I gotta get an airbed?

Hi Everyone,

Here is a quick update on the recent software issues.

Please note that all players were refunded for these problems and the software has been fixed.

Tournament #2120428

A player IYKISA was playing a tournament on December 20th, 2008.

IYKISA’s chip count was reset twice during this tournament because of a software malfunction involving satellites.

First his chip count was reset from 2970 to 3000 when he won the first satellite (TID 2120487), gaining 30 tournament chips.

When he won the second satellite (TID 2120480) his chips were reset from 3720 to 3000, losing 720 tournament chips.
Both “resets” account for 690 tourney chips disappearing from the tables, meaning the winner standing up with 269,310 instead of the expected 270,000.

Ring Game’s #1162170993 and #1136089263

I also wanted to share the additional information I have regarding the malfunction with a hand involving Phil Hellmuth’s (#1162170993) on December 20th and another incorrect payout on December 2nd in Hand #1136089263.

I am still reviewing these investigations with our software department but it appears that the malfunction with hand #1162170993 occurred because of new software code released on December 10, 2008. In this software release, new functionality was added to our platform that removed players from heads up tables if they were inactive at the table for a lengthy amount of time. We believe that a problem with this new functionality was the cause of the malfunction.

Currently, my understanding of the incorrect payout involving hand #1136089263, is that the root cause of this issue related to the transferring of players from one of our game servers to another. At the time of this hand our software department transferred players to another game server while fixing a load issue, shortly after we launched the CEREUS platform.

We take these software issues extremely seriously and I will post more details about them soon.

Paul Leggett

Now only if they could issue players the hand histories they’ve requested and the full list of superusers, they’ll be on to something.

As we explained in our press release, the incorrect payout was caused by a software malfunction. The software malfunction occurred when the winning player was disconnected from the hand at the precise millisecond the software was determining whom to award the prize. This in conjunction with the “player’s state” data being cleared from memory caused this extremely improbable incident to occur.

Originally we were unable to reproduce the error in our test environment, until we programatically forced a disconnect to happen at the precise millisecond the hand was being awarded.

We have never had an issue like this reported previously and we have reviewed all of our database and application logs for December and November and have been unable to find any historical occurrences. We are continuing to go back further into the historical data to ensure no hands from the past need to be corrected. Analyzing this data takes time but we will continue to go back further and further into our history to ensure no one else was affected.

Leggett’s entire statement can be found at the Ultimate Bet blog.

Tokwiro Enterprises, who own Ultimate Bet and Absolute Poker, issued their own statement on the matter, after the jump:

WINNING HAND CORRECTION

MONTREAL (DECEMBER 23, 2008) – Tokwiro Enterprises (“Tokwiro”) issued the following statement today, concerning the correction of a winning hand played on the CEREUS Poker Network on Saturday, December 20, 2008.

Paul Leggett, Tokwiro’s Chief Operations Officer stated:

On Saturday, December 20, 2008, two players DOUBLEBALLER and PHILHELLMUTH were playing heads up at a 200/400 table on UltimateBet.com. DOUBLEBALLER won hand #1162170993. The software malfunctioned and awarded the losing player PHILHELLMUTH the pot, instead of the actual winner DOUBLEBALLER. After learning of the incident, we credited the player the correct prize to his account. We then began an investigation into the malfunction. We have now completed our preliminary investigation into the software malfunction regarding an incorrect payout in hand #1162170993 on the CEREUS Poker Network.

We have concluded that the malfunction occurred because the winning player disconnected from the table at the precise millisecond when the software was awarding the pot, in conjunction with the “player’s state” data being cleared from the memory cache.

Phil Hellmuth, who was involved in this incident, said, “The only time in my life where I’ve had one pair beat three of a kind is when I made a big bluff in a poker tournament and now because of a software malfunction in online poker. I am one of the most watched players on the Internet, and all I can say is that it is pretty obvious that there was no malicious intent and even more obvious that UB handled this problem well. Sometimes these things happen on the Internet. The important thing here is that I continue to have a ton of trust in UB’s software and new management team.”

There is a prevention system in place designed to protect hand results against disconnections. However, after conducting an extensive source code analysis, we found logic in our code that we have enhanced to further ensure this malfunction cannot reoccur. We were able to reproduce the error on our testing systems by forcing a hand to disconnect its winning player at the precise millisecond the hand in question was awarding the pot and simultaneously flushing the “player’s state” data. Had the disconnection happened literally a millisecond sooner or later the error would not have transpired.

While enhancing the software to prevent this malfunction from occurring again, we introduced a new defect that caused 36 hands to award incorrect payouts. All players have been reimbursed for these hands as well.

We have implemented a new method into the code and updated the game servers. Both errors are no longer reproducible. Furthermore, we are conducting extensive tests to simulate every possible disconnection scenario to ensure this type of malfunction cannot occur in the future.

We are currently reviewing historical hands in our database to see if there ever were similar incidents in the past. Thus far, our investigation has been unable to unearth any additional historical occurrences of this malfunction. Our investigation will continue until we are satisfied that there are no additional historical occurrences.

We recognize the severity of these issues and we will continue to give them the attention they deserve until we are absolutely certain that they cannot happen again.

* 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.

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.

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:

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.

COURT APPROVES $15 MILLION SETTLEMENT OF TOKWIRO CLAIMS AGAINST EXCAPSA SOFTWARE
Tokwiro Claimed Damages As A Result of UltimateBet Cheating Scandal
Refunds To Affected Players Completed

MONTREAL (NOVEMBER 5, 2008) — Tokwiro Enterprises, ENRG (“Tokwiro”), the owner of AbsolutePoker and UltimateBet, today confirmed the settlement of its claims against Excapsa Software, the previous owner of UltimateBet. The Honorable Madame Justice Sarah E. Pepall of the Ontario Superior Court of Justice endorsed the settlement on November 3, 2008. Under the terms of the agreement, Excapsa will pay US$15 million to Blast-Off Ltd., the Tokwiro-controlled company that originally acquired UltimateBet. This payment will be used immediately to refund players who were affected by the cheating scandal that Tokwiro inherited when it purchased the business from Excapsa.

Paul Leggett, Tokwiro’s Chief Operating Officer, said: “We are pleased that we have finally agreed to a settlement with the previous owners of UltimateBet, and we are happy to announce the completion of the final refunds to players. Together with our regulatory body, the Kahnawake Gaming Commission, we have fought long and hard to hold those responsible accountable for the fraud, to refund players, and to ensure this can never happen again. Now that the main perpetrator has been named, the settlement with the previous owners is behind us, and players have received refunds, it should now be apparent that Tokwiro had no involvement in this cheating and that we have fought to correct it with every tool at our disposal.

“We continue to reserve the right to pursue further legal action against any individual or individuals involved in stealing from us or our customers. With this settlement, however, our claims against Excapsa are satisfied, and all player refunds will be completed. This brings us significantly forward in our search for justice in the aftermath of the cheating scandal,” concluded Mr. Leggett.

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.

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…”

Regarding legal actions:

“We are pursuing many, many legal actions right now. I’m confident that a lot of it will become public in the very near future… I cannot confirm or deny anybody that is involved or not involved at this point. There’s nothing that would give me more personal satisfaction than to do that, but unfortunately, our situation is very complicated. But I have a ton of evidence – IP addresses, withdrawal information, transfer information, addresses, names – and I’m confident in my own mind that I know exactly what occurred… I’m very hopeful that we’re going to be receiving a very large sum of money as a result of our legal actions… I’m very committed to doing everything I can to make sure that enough information comes out about this, whether it be through our legal actions or whatever, to make sure that the poker community and the public at large are satisfied at the end of this.”

In response to an inquiry about Russ Hamilton receiving royalty payments from UB:

“Absolutely in no way does Russ Hamilton receive any compensation from us or have any role in this organization.”

Regarding the KGC assignment of independent investigation of Tokwiro:

“It was a surprise to me; I only learned about it the day before their public announcement… We welcome it with open arms. I think it’s great for the industry and for us personally.”

To clarify that all victims of the scandal have not been repaid:

“The first statement that we made on May 29th, all of those accounts that we had identified at that point and concluded were for sure involved in the cheating were immediately refunded… As I understand it, it is in the interest of everyone at the KGC, Frank, and us that those additional refunds are completed as soon as possible.”

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.”