Stu notes that the investigation leading to Bodog’s shutdown wasn’t singular in scope, and asks who might be next on the DOJ’s hit-list. The answer to that question, I believe, is in the indictment itself — and though they don’t name any magazine or website by brand, the DOJ does reveal that after more than five years of investigation they consider certain media part of a criminal conspiracy to facilitate illegal online gambling.

Read and decide for yourself on the not-so-subtle nuances of the DOJ-Maryland office’s carefully chosen words:

6.Through these communications, members of the conspiracy caused the media reseller to create and execute an advertising campaign to increase the participation by gamblers in the United States on the BODOG.com website.

7. Through these communications, members of the conspiracy caused the media reseller to send invoices to BODOG ENTERTAINMENT GROUP S.A., d/b/a BODOG.com. These invoices represented the costs and fees for the creation and execution of the advertising campaign.

8. Members of the conspiracy caused funds to be sent by wire from accounts located outside the United States to accounts located in the United States to satisfy the invoices sent by the media reseller. These wire transfers totaled more than $42 million during 2005 through 2008.

The DOJ has been telegraphing their next move(s) with virtually every court filing for two years or more, and with Ayre’s indictment, you can see the legal play being set up by calling it all a conspiracy, bringing charges of “aiding and abetting” into play, and putting a specific dollar amount ($42 million) on at least one media operation’s ill-gotten gains.

Yeow. So what unnamed media had such a deal with Bodog worth $42mm? I have few ideas can assure you it wasn’t Pokerati. There’s actually a remote possibility that since we’re talking about sports-betting here it’s not “poker media” at all … but assuming the DOJ understands the difference between rev-share and CPA, then if poker media isn’t in line for indictments or big money seizures of their own, then I’m pretty sure it means they’re cooperating.

They did, of course, use a question mark disclaimer in the clue, but it probably wouldn’t have made sense without it.

Hard to tell if this game in Northeast Harris County was truly a family poker night in a residential neighborhood or underground poker room … but either way, sad as it is in the face of death and painful injury, you gotta believe there is more to this story:

In a story that ran on April 15, 2010, Johnny Hughes told a San Antonio newspaper that the violence in Texas poker rooms was reaching a fever pitch — quite different (and potentially more deadly) than the fights and robberies he had witnessed over the previous 50 years of playing un-legalized Texas poker.

I think we’re up to at least five deaths by gunfire in Texas poker games now, over the past few years.

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

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

Among other denials, Campos and Elie sought to get much of the case thrown out on the grounds that the UIGEA is a bad law and/or poker isn’t gambling. With the action back on the DOJ, Preet Bharara assistant Arlo Devlin Brown delivers some rather compelling legal composition (the best writing is in the footnotes, imho) that reads like a big STFU from SDNY … with a message of hey, better watch it or we could indict the whole damn poker industry!

I’m paraphrasing, obv … but here’s the full Government’s Response to Defendants’ Pre-Trial Motions. They purport to have a mountain of evidence ready for trial … and show a century’s worth of precedent to snuff out any hopes that poker people could actually win this case.

With the standard disclaimer of “I’m not a lawyer but …” some fascinating elements include:

Federal courts have repeatedly and consistently upheld the application of the IGBA to poker. For example, at least three Circuits have specifically affirmed a defendant’s IGBA conviction where the sole gambling business at issue was the operation of a poker room. See United States v. Rieger, 942 F.2d 230 (3d Cir. 1991) (upholding IGBA conviction based solely on operation of a poker room); United States v. Zannino, 895 F.2d 1 (1st Cir. 1991) (same); United States v. Tarter, 522 F.2d 520 (6th Cir. 1975) (same); cf. United States v. Trupiano, 11 F.3d 769, 774-74 (8th Cir. 1993) (upholding IGBA conviction based on weekly card games hosted at individual’s home). Multiple Courts of Appeals – including the Second Circuit – have similarly upheld the application of the IGBA to gambling businesses offering video poker. See, e.g., United States v. Gotti, 459 F.3d 296, 342 (2d Cir. 2006) (affirming IGBA conviction for operating video poker machines, and specifically rejecting argument that IGBA and referenced New York gambling law did not apply to games that involved an element of skill); United States v. Lanzotti, 205 F.3d 951 (7th Cir. 2000) (affirming video poker conviction under IGBA); United States v. Hill, 167 F.3d 1055, 1064 (6th Cir. 1999) (same); United States v. Grey, 56 F.3d 1219 (10th Cir. 1995) (same). Additionally, multiple Courts of Appeals, again including in the Second Circuit, have applied IGBA to gambling operations that offered poker alongside other traditional casino games such as craps or blackjack, without the slightest suggestion that the IGBA’s definition of gambling excluded poker. See, e.g., United States v. Cook, 922 F.2d 1026 (2d Cir. 1991); United States v. Giovanetti, 919 F.2d 1223, 1225 (7th Cir. 1990).

4 E.g., Utsler v. Territory, 10 Okla 463 (1900) (“The witness Fisher also testified that he saw gambling carried on in the room with cards, being known as ‘stud poker,’ and he also testified that liquor was sold in the same room.”); In re Selling’s Estate, 17 N.Y. St. Rep. 833 (1888) (“The proof submitted by the petitioner also shows the respondent Joseph Selling to be a man of utterly worthless and irresponsible character; that he is a professional gambler, know[n] as ‘Poker Joe….’”).

For example, Willie Nelson’s classic poker song, about knowing when to “hold ‘em” and when to “fold ‘em” is called – based on the movie by the same name — “The Gambler.”

[Aha, your honor, with this sort of investigatory flaw, I move for dismissal, and instant restoration of Full Tilt poker funds and PokerStars points!]

First, defendants claim that in each of the listed games, the bettor has “no role in, or control over, the outcome” and that the game is instead subject only to chance. That is not true with respect to bookmaking, at the very least. Betting on the outcome of sporting events involves “substantial (not ‘slight’) skill,” including “the exercise of [a] bettor’s judgment in trying to . . . figure [out] the point spreads.” Office of the Attorney General of the State of New York, Formal Opinion No. 84-F1, N.Y. Op. Atty. Gen 11 (1984). Sports bettors have every opportunity to employ superior knowledge of the games, teams and the players involved in order to exploit odds that do not reflect the true likelihoods of the possible outcomes. Indeed, academics who have argued that poker should not be treated as a form of illegal gambling on the grounds that it is a “game of skill” make the same argument with respect to sports betting.11 Ultimately, the outcome of the bets that poker players make on the cards, just like the outcome of the bets on sporting events.

In making this argument, the defendants conflate two distinct concepts under IGBA – what it means to be “conducting” a gambling business in a certain place and whether certain employees can be construed as being involved in “conduct[ing]” the business. Becker addresses only the latter issue and holds, consistent with legislative history, that “Congress’ intent was to include all those who participate in the operation of a gambling business, regardless of how minor their roles and whether or not they be labeled agents, runners, independent contractors or the like, and to exclude only customers of the business.” 461 F.2d at 232. The footnote in Sanabria says the same thing. 437 U.S. at 70-71 n.26. The cited cases do not address (much less limit) what it means for a gambling business to be “conducted” in a state, and the logic of the argument that defendant’s advance is absurd: a New Yorker who buys a hot dog from a street vendor is not of course “conducting” that hot dog business, but it would be incorrect to claim that this means the business is not being conducted at all, by anyone.

Elie alone also contends that IGBA is unconstitutionally vague as applied here because it is charged with reference to New York law and because “reasonable minds can differ” as to “whether poker constitutes gambling” under the provisions of the New York Penal Law referred to in each of the IGBA counts charged in the Indictment. Elie IGBA Brf. at 27-30. Reasonable minds cannot.

[OK, OK, so they're taking this kinda seriously. Strong means weak, maybe?]

30 18 U.S.C. § 2 provides that “[w]hoever commits an offense against the United States or aids, abets, counsels, commands, induces or procures its commission, is punishable as a principal.” 18 U.S.C. § 2(a).

C. The UIGEA, As Applied to Online Poker, Is Not Void For Vagueness

In the end, it could come down to a matter of who’s gonna sing, or who’s already sung. Meanwhile, The Gambler does make a great metaphor for how Full Tilt (and PokerStars?) may or may not have misplayed their hand:

It didnt’t really bother me when Poker Spot folded, because that guy had history. And I laughed about the money Aces Poker stole, because anyone who trusted them couldn’t ever spot a cheat. The Ultimate Bet scandal wasn’t really that surprising, as we’d heard stories about him for years. And it never shocked me when they cheated me in Atlantic City, or went partners against me in Vegas, or at Foxwoods tried to do a runner with my funds. The nips, the moves, the cheats, the angle shooters, and those that were just plain thieves. For the past ten years when the stars put on their caps and badges and smiled for the TV, we used to smile to ourselves. And then we’d laugh as we’d tick off the big names in poker and say, “But he’s really just a little scumbag, isn’t he?” Because they pretty much all were. And that’s the way it’s always been.

I didn’t always think like that, of course, and neither did you. I came into poker just like yourself, wide eyed and dough faced and on the back of a little bit of luck. Full of passion for the game and a romantic view of the poker world and a desire to be accepted by the rambling gambling men who ruled. It’s natural when you have a pocketful of money and a bellyful of gamble and all the confidence in the world, it’s natural that when it comes to people you can be a little naïve. I certainly was, and so probably were you.

I’m ashamed that I have sat by in silence while you all cheated, stole, and lied. I know you, you thieving tournament directors, you scumbag poker players, you dirtbag angle shooters with your names stitched on your shirts. I know you. And I’m ashamed that I’ve sat here for twenty years and let you rule the poker world as long as I was still getting paid.

But you get wiser because you have to. My circle got small and my radar got sharp and I could count all the people that I could really trust on maybe one hand. And I told them they could trust me. And pretty much everyone else were scumbags and cheats. In poker, that’s the way it’s always been. That’s the way it’s been for me, and that’s the way it is for you. And we don’t ever talk out of turn. Because in this world if you shit where you eat, then you’ll end up hungry. That’s what you need to know about poker. That’s what you need to know about me.

I’ve been around long enough so that just one more scam, cheat, or mismanagement of funds, one more of those should be just like more water off another duck’s back. But something happened to me when Full Tilt Poker collapsed. This one is different. This has laid me low. It’s not just anger I feel, it’s not just disdain, and I can’t sit here like I always do and smile to myself and point fingers and call them scum. Because what I feel more than anything else right now, is shame.

I am ashamed of you, Howard, and you, Chris, as well. Your actions have made me ashamed. But I’m also ashamed of every one of you that owns Full Tilt Poker stock and has sat in silence. You don’t want to give that money back. It’s nothing to do with you. You were just someone getting paid. You’re sitting in silence and running around and playing in tournaments and talking to your lawyer and feeling sorry for yourself. Shame on you, shame on your silence every last one. But that’s not all. Shame on those of you taking money to wear logos now, in the past and in the future, no matter the site. I’m ashamed that your moral code stops at every paycheck, that you ignore and turn your back and sweep under the rug rather than demand an answer. I’m ashamed of your goddamn hypocrisy and your proclamations about morality while your hush money spills out of your goddamn ass. I’m ashamed of those of you who are quick to condemn another rather than ask those tough questions of yourself. I’m ashamed of those of you who are willing to turn a blind eye because it involves your friends. I’m ashamed that not one of you really care about anyone but yourself, because how could poker ever remotely be called a sport when none of you have a shred of respect? And I’m ashamed that a bunch of fat cat dot com millionaires will never ever be able to imagine any perspective other than their own.

Most of all, of course, I’m ashamed of myself. I’m ashamed that I have sat by in silence while you all cheated, stole, and lied. I refused to speak up. I know you, you thieving tournament directors, you scumbag poker players, you dirtbag angle shooters with your names stitched on your shirts. I know you. And I’m ashamed that I’ve sat here for twenty years and let you rule the poker world as long as I was still getting paid. I’m ashamed that I will demand all day for ethics, honesty, and transparency as long as there is no personal sacrifice involved. I’m ashamed that I only want to clean things up as long as they don’t affect the bottom line. You take your ethics and shove them. You take your integrity and stuff it. Shame on you. You’re no better than the rest of them. And I’m no better than you.

In glass houses, don’t throw stones. Know thyself. The most naïve thing any one of us could think is that what’s left is honest. The most cowardly thing any of us could say right now is don’t upset the apple cart. And the most shameful thing any of us could be right now is happy to not demand answers as long as we are still getting paid. The only thing stopping player power is the players themselves. And that is totally shameful. This is only poker like it always has been, nothing new. And maybe that’s the most shameful thing of all.

Don’t sweat it Chris. I’m not really ashamed of you. I always knew you were just a little scumbag.

In it they spell out a process they are going through to get money from anyone who mighta suckled from the Full Tilt mother-teat, and give an indefinite timeline (months at a minimum) to tell all those thinking this could be the “final chapter”, “dude, we’re just getting started, here.”

The full DOJ statement is below, which ends with a reminder about 28 C.F.R. Part 9, the regulation that binds them.

Meanwhile, not sure if this is a good, bad, or meh-for-poker … but the DOJ is coming under scrutiny over seized assets. Just this month — after an investigation sparked by a junior prosecutor in the Southern District of New York concerned about plausible shenanigans in the remission of Bernie Madoff loot — the Justice Department’s own Inspector General cited serious deficiencies in the US Marshals’ handling of seized assets. The OIG wrote a report that reads kinda like a Full Tilt indictment … at a time when they are getting flack (from both the left and the right) for essentially abusing some 400 laws allowing them to take money and other assets from people who may or may not face criminal charges.

United States v. Pokerstars et al., 11 Civ. 2564 (LBS) (Full Tilt Poker information)

After the amended complaint in United States v. Pokerstars et al., 11 Civ. 2564 (LBS), was filed on September 22, 2011, the United States Attorney’s Office for the Southern District of New York received a number of new inquiries from individuals regarding the recovery of their funds from Full Tilt Poker.

By way of background, in April of 2011, this Office entered into a domain-name use agreement with Full Tilt Poker. That agreement, among other things, expressly authorized Full Tilt Poker to return player funds to players. However, as the September 22 amended complaint alleges, Full Tilt Poker did not in fact have player funds on hand to return to players. Instead, the amended complaint alleges that Full Tilt Poker had, among other things, (a) transferred significant amounts of players’ real money deposits to principals of the company, while (b) allowing many players to continue to gamble, and “win” and “lose,” with phantom credits in their player accounts.

At this time, this Office, together with the FBI and other agencies, is attempting to trace, secure and forfeit as much as possible of the funds derived from operation of the fraud committed by Full Tilt Poker and its board members that is alleged in the amended complaint. The Office is also attempting to obtain and examine the books and records of Full Tilt Poker. Many of those books and records are kept overseas. The return of forfeited funds to victims of the alleged fraud may be possible, but will depend on several factors, including the successful conclusion of the litigation, the amount of funds seized and ordered forfeited by the court, and compliance with other procedures the Department of Justice may eventually establish regarding return of forfeited funds to victims who lost money as a result of the alleged fraudulent conduct.

We cannot predict the duration of proceedings in this case, other than to state that they will last for many months at the least. We will apprise victims of the alleged fraud of future developments as appropriate. General information regarding what is known as “remission” (i.e., return to victims) of funds that have been seized and forfeited is set forth in Department of Justice regulations found at 28 C.F.R. Part 9.

I have spoken with many poker players who have been deeply affected by the failure of Full Tilt Poker, Absolute Poker, and Ultimate Bet to repay its players since Black Friday. While I have roughly five figures of my own money locked up on Full Tilt Poker, this is nothing compared to the heartbreaking stories I have heard from many of my fellow players. We all need to take a stand — for the present AND for the future.

You all received PPA’s update yesterday detailing how to contact the Justice Department’s Victims and Witness Services program. I encourage everyone affected by this to take a good look at both this program and at PPA’s legal analysis of the options available to individual players who have not been able to access their online poker funds.

PPA has worked to ensure that all proposed online poker legislation includes provisions for consumer protections even well before Black Friday. Needless to say, PPA will continue to push for these important provisions. We all deserve safe, licensed, accountable sites on which to play. I am glad the poker community is standing together, united in this fight for our rights.

Here are some actions we can take right now to continue to advocate for our rights. These take less than 60 seconds each!

“We the People” Poker Petition to President Obama

We the People is a new addition to the White House website that allows Americans to petition the Obama Administration on a range of issues. Per the site, “if a petition gets enough support, White House staff will review it, ensure it is sent to the appropriate policy experts, and issue an official response.”

This is a great way for us to ensure the administration hears from the poker community, so let’s all take a moment to sign the petition electronically.

The site is getting a lot of traffic, so you may get either a “site is under maintenance” or a “404 not found” message. Just try it a few times and you’ll get through. Even with this slight delay, it should take less than one minute to complete:

1. Go HERE and click “CREATE AN ACCOUNT.”
2. The site will send a confirmation email. Click on the link in that email to continue.
3. Click “SIGN THIS PETITION” to vote (if you are not redirected automatically, go HERE to vote).
4. Send a prefilled, editable Twitter message to invite others to sign this petition HERE.

Deficit Super Committee Outreach

The United States Congress Joint Select Committee on Deficit Reduction is made up of 12 members of Congress — six representatives and six senators, with equal representation from Democrats and Republicans — who have been tasked with developing a bipartisan plan to reduce the federal deficit. The plan will be delivered to the full Congress and President Obama by Thanksgiving.

Let’s all take a few moments to visit the super committee’s website HERE to send the super committee members our recommendations. Below is a sample letter that you can edit or cut-and-paste as-is into the message field. Or, better yet, write your own. This is another great opportunity for us to demonstrate support for our position.

SAMPLE LETTER (this has been updated from last week’s sample letter, so feel free to send this one even if you sent the prior one last week)

Dear Honorable Joint Select Committee Members,

HR 2366, the Online Poker Act, is a bipartisan bill that, should it become law, will create thousands of jobs while providing up to $40 billion in new tax revenue for the federal deficit over the next ten years — without raising taxes. It also mandates strong consumer protections and effective age verification.

Former FBI Director Louis Freeh and former Secretary of Homeland Security, Governor, and Assistant District Attorney Tom Ridge support federal online poker licensing because it addresses control of cash flows and mandates consumer protections, while WiredSafety concluded that “combining a thoughtful regulatory scheme with education, technology tools, and support appears to be the most effective means of handling the realities and risks” of online poker.

Licensed U.S.-based horse race wagering sites have proven that online betting sites can successfully implement strong consumer protections while creating American jobs and generating revenues for our government. It is time to allow online poker sites the same opportunity.

I respectfully ask that you seriously consider recommending sensible licensing and regulation of online poker within the U.S. in your deficit reduction report to Congress and the President.

Thank you for your consideration.

Sincerely,

Add your name here

 

Department of Justice Outreach

Let’s ask the Justice Department to consider ALL seized Full Tilt Poker funds as rightfully belonging to affected players. We can do this in less than 30 seconds.

1. Send a prefilled, editable pro-poker Twitter message HERE. Verify that your Twitter account is not set to “private”.
2. Try to wait at least an hour, then send another Twitter message HERE.
3. Like the DoJ Facebook page HERE (you can unlike when done if you wish) and like the pro-poker comment HERE
4. Return to the main Facebook page HERE to post and like respectful pro-poker comments. Either cut-and-paste the following, or write your own respectful post: “Funds seized from Full Tilt Poker and its processors rightfully belong to the affected players, whom you have identified as victims of fraud. Will you please use all recovered funds, including those from prior payment processor seizures, to repay affected players? Thank you.”
5. Please follow the daily action plan on Twitter HERE and on Facebook HERE.

Interviews

PPA comes before poker media to take on the tough questions as often as possible, as the questions we receive at these interviews are representative of the issues in which the poker community is most interested. I hope you will find these interesting and informative:

• Video: PPA Board Member and 2004 WSOP Champion Greg Raymer on CNN
• Executive Director John Pappas on NPR’s “All Things Considered” (9/21)
• Podcast: Short Stacked Radio (9/20) — I come on at time point 1:32:10 in Part 1
• Podcast; QuadJacks Poker Radio (9/20): I discussed the Full Tilt Poker issue at length. The podcast should be available later this weekend.

Thank you again for your support!

Proud to play,

Rich Muny

playerrelations@theppa.org
www.facebook.com/rich.muny

The first EPL Main Event winner, Chino Rheem, was put on probation shortly after winning $1,000,000. Rheem is obligated to pay back players he owes money to with any winnings or he’ll no longer participate in EPL events. He finished Day 1 in 6th place after six levels were played Tuesday afternoon. The smaller field means twelve players will cash, with the winner earning $782,410.

Here’s the top 10 in chip counts going into Day 2:

1. Jaime Kaplan – 324,600
2. Dan O’Brien – 321,400
3. Alec Torelli – 231,500
4. Mike McDonald – 199,600
5. Nam Le – 176,300
6. Chino Rheem – 173,300
7. Sean Getzwiller 165,400
8. Andrew Robl – 149,700
9. Adam Levy – 145,400
10. Marco Johnson – 145,200

Day 2 updates available starting from 12pm PT at www.epicpoker.com

EPL Preliminary Action

The $1,500 Pro/Am event featured an overlay of nearly $50,000, meaning only nine $20,000 Main Event seats were available when the field was down to 9 players. The event earned points towards the Global Poker Index, giving players incentive to play down to a winner. Greg Mueller defeated Nam Le heads-up to become the official winner with Phil Hellmuth finishing 3rd. Brandon Meyers and Sean Getzwiller each qualified for the Main Event for the second straight Pro/Am, but Meyers was eliminated on Day 1.

Jaime Kaplan was the 10th place finisher in the Pro/Am, but he earned a Main Event seat when qualifier Michael DiVita chose not to participate in the Main Event after information about his being a convicted child molester came to public light.

After the Pro/Am concluded the EPL held a charity event for Fallen Heroes USA, an organization dedicated to assisting families of law enforcement officers killed in the line of duty. Epic Poker’s own Michael Craig took down the bracelet, defeating Phil Hellmuth heads-up as $25,000 was raised for the charity.

Gill is known for his unashamed belligerence, politically incorrect rants, and a “FUCKITALL” attitude. I totally dig this guy, partly because he’s virtually a male copy of myself (so I “get him”) and partly because I respect his game. But a recent Facebook status update shed some new light on his true vagina character: “I really don’t want to go to jail… 14 days is going to be brutal,” he whimpered.

Shortly after publishing that comment, Gill’s ballsack threatened to tear itself off and run away in shame. I was really disappointed to see the him panicking over two short weeks behind bars. Let’s put this in perspective…getting fisted by Edward Scissorhands is brutal.  A coathanger abortion is brutal. Two weeks in a hillbilly jailhouse isn’t so much brutal as it is inconvenient

Keep your chin up, Carter; I’m sure the two weeks behind bars will come and go as fast as your bankroll does.

This notice stood out to me as I was listening to Donkdown Radio live yesterday — where the troublemakers at DD apparently got Russ Hamilton on his private cell phone for a good ole fashioned radio prank call. Russ, of course, has never been prosecuted for egregious crimes he hasn’t even been formally accused of committing at an online “casino”. Hey, karma … living an OJ Simpson existence between Las Vegas and Florida.

Not to get off topic — because really, it’s just an amusing sign — but one thing I didn’t believe from UB and Annie Duke upon fingering the 1994 WSOP champ as the lone gunman in the biggest cheating scandal in gaming history was that they tried to prosecute Russ Hamilton but were unable to because of jurisdictional limitations. I don’t buy it because I’m pretty sure had they tried they’d have a letter from someone official stating just that — you know, like sorry, we’d love to help, but this alleged offense is beyond our ability to investigate. Think about it … the Neteller guys got tagged, as did others, even though they were in Canada and their servers were somewhere outside the US. Rapists have been extradited across state and even international lines for crimes committed in many different places. If anything, you’d think there’d be a fight over who gets to prosecute such people, not who can’t. All authorities would need is some respected agency to cooperate.

If Russ Hamilton did indeed steal $60 million … those crimes were committed arguably in the US against US citizens also in the US, and the Kahnawake would have evidence that the FBI would be very interested in. Sure, his defense counsel might be able to make a strong case around jurisdictional disqualifications … but that would still have the accused facing formal charges, and he would have a Constitutional right to challenge his accusers instead of just lashing out at his harassers in a low-stakes Florida game.

I’m no lawyer, so I could be wrong, but …

That’s what currently doesn’t exist with online poker in the US — the ability to prosecute what seems clearly a criminal act committed by an American in America against other Americans. Kinda bullshit when you think about it. Why can’t we? Why hasn’t anyone?

Not even a civil suit?

Curious, too, about the timing of Annie Duke and Phil Hellmuth both leaving UB around the same time Russ Hamilton seems willing to make more appearances (where people might recognize him) and actually vocalize his distaste for efforts to brand him with a scarlet C.

(And btw, how did no one video this outburst if it really did happen? No one at a table nearby had an iphone at the ready?)

What looks to have been a rookie armed robbery of a min-stakes poker game in Michigan caught on video … just like EPT Berlin … you know, if PokerStars ran live events in the $30 to $40 buy-in range that start at 7 and have 15-minute levels.

At about 1 am Wednesday night/Thursday morning, two armed men entered “The Tilt Room” at the Bob-Hi Lanes near Muskegon, Michigan (a small port town of about 174,000). Upon being laughed at by players and managers, one of the robbers pistol-whipped a room employee as the duo grabbed cash on the bar, then stuffed their pockets with the rest of the money on hand. No one was seriously injured. Police say they are looking for two black males, one about 6’4″ the other 5’9″.

No word on how much money the “blue-hoodied bandits” got away with. By law, Michigan poker rooms are allowed to sell up to $15,000 in chips each day.

News reports say it was a Red Cross charity event — but just to be clear, unless I am seriously underestimating the size of the Wednesday evening tourney by a few hundred, this was not like the red-carpet charity events many of us no well. Michigan law allows for small-stakes poker rooms akin to many underground games around the country — so long as they pay the state a daily license fee and give a small portion of their rake and entry fees to charity. That charity can change by the week.

Recently publicized events at The Tilt Room benefitted, for example, an athletic booster club to buy new uniforms for a local baseball team, and the West Michigan Spay & Neuter Clinic, as listed in the current issue of West Michigan Cats and Dogs Magazine.

Michigan poker rooms have apparently been hit recently by a rash of robberies and parking lot muggings.

A vice squad in SWAT gear returned fire, hitting Awtry with multiple rounds in his arm and thumb … which was followed by a 20-minute standoff between cops and players, according to a spokesman for the Greenville County Sheriff’s Department. Both shooting victims were taken to the hospital where they are in stable condition.

There were 12 people and Awtry in the house at 502 Pine Knoll Drive when police arrived at about 9:20 pm last night. According to frontline witnesses, they had just finished a small buy-in dinnertime tourney … and a 1/2 cash game was just getting underway when someone saw 5-0 approaching on a security monitor. Before he could clearly vocalize an alert, a battery ram begin slamming the front door and players froze. Awtry, who players say has notoriously bad hearing in his senior years and presumably believed the game was being robbed, began shooting at the door with his pistol, firing “at least once” according to a player, “multiple shots” according to police. At least four officers returned fire at the door with at least 20 bullets from their higher-powered assault weapons.

As Awtry fell back into the poker room entryway, he balked, “Why didn’t you tell me it was the cops?”

click to enlarge

Police supposedly pulled backed after the exchange of gunfire to secure the perimeter while players inside called 911 to report that people were hurt, they needed an ambulance, and they meant no harm. Eventually they all had to remove their shirts as they came out of the house one by one to be handcuffed and transported downtown for questioning and gunshot residue tests. All were eventually released and received $100 gambling citations except for the Awtry, who is still in police custody at the hospital, charged with attempted murder and possession of a weapon during the commission of a violent crime. He could face additional charges related to the allegedly illegal gambling operation.

72-year-old Aaron Awtry could spend the rest of his life in prison for shooting a cop while hosting a 1/2 game that South Carolina’s highest court isn’t yet sure is all that illegal.

A Greenville County Sheriff’s Office press release says deputies seized $4,785, two poker machines, two poker tables, three surveillance cameras, 3.7 grams of cocaine and about $2,000 worth of gambling paraphernalia such as cards and chips. A copy of the search warrant left behind reveals the house had been under police surveillance for months … and the raid netted about $2,500 in cash.

Less than three weeks ago, the South Carolina Supreme Court was hearing arguments from a PPA-backed legal team about a similar but less injurious poker raid in 2006 — and will be considering whether or not such a game is even a crime under South Carolina gambling laws written in 1802. A ruling is expected by mid-2011.

The poker house shot up last night was in a relatively rundown semi-residential, semi-industrial nook on the edges of suburban Greenville — about a mile from a high school and a mile from an underground room that the Greenville County Sheriff’s Office raided in January, arresting 27 players and seizing about $64,000 in cash.

As is often the case in underground poker scenes nationwide, a string of armed poker robberies followed a string of armed police raids this year in Greenville, a longtime hotbed of good poker that many players affectionately refer to as G-Vegas.

Since 2009, South Carolina lawmakers have been pushing legislation to revise and clarify state gambling laws, and potentially legalize raked home games and/or charity tournaments.

According to the tweet of a player who was at this latest Greenville raid gone awry:

Un-fucking-real.To my surprise, Im alive. So is everyone else. Going to sleep… i hope…

Oh boy … the election-driven hedlines in the mainstream press will likely be about tax fraud, but we’ll know it means something more to people involved with online gambling fights beyond Massachusetts’ 6th district …

The DOJ unsealed a 4-count indictment of Patrice Tierney yesterday, wife of US Rep. John Tierney (D-MA) — for aiding and abetting an allegedly illegal online gambling operation. Specifically, the Feds tagged her for tax fraud while managing a bank account for her brother Robert Eremian. Apparently she miscoded some bank transactions that help them avoid detection as online gambling funds from a business based in Antigua.

Tierney pled guilty yesterday and was released on her own recognizance. She faces up to three years in prison and a $100,000 fine, though her attorney, a former US Attorney, says she will likely receive probation with some home incarceration.

Tierney says she believed her brother’s business was selling and licensing software to legal online gambling businesses. Eremian and his brother Daniel Eremian were indicted in August by the DOJ in Massachusetts for a laundry list of crimes that included UIGEA violations.

There’s a good story about the case here, in Salon. Also good continuing coverage from the Newburyport News, where they’ve found that Tierney’s brother already faced illegal online gambling charges in the late ’90s (and struck a probated plea deal with the Feds).

John Tierney’s opponent in the November election, birther Bill Hudak, has now called into question the Congressman’s vote in July 2006, where he was one of eight Massachusetts reps to vote against the Internet Gambling Prohibition and Enforcement Act, a bill that would pass the House, 317-93, and would eventually evolve into the UIGEA.

In fact, yep, that’s the story that seems to be trending right now — with undertones that supporting online gambling is at a minimum a red flag.

Without having seen any of the legal docs yet, it’s not clear what, if any, connection to poker this case has. But the operation here — Sports Offshore — is the same alleged racket that led to indictments (in May, I think) for Todd Lyons, whom you may recall was the second person arrested in America charged with UIGEA violations … and the first American, as opposed to a foreign national. Apparently the Eremians were added to the indictments in that case, and they too were charged with UIGEA violations and numerous other gambling- and finance-related offenses.

With the arrest of Lyons’, who faces dozens of charges, the prosecutor highlighted the key point in this case: that just because your business is based offshore, it didn’t mean you could run it from the United States and live in a big fancy house here while doing so. More in the DOJ press release … much of it to suggest this case is about more than just one Congressman’s willfully ignorant wife committing tax crimes in 2003-2009.

A few highlights from the DOJ that jumped out:

Eremian allegedly employed dozens of “agents” in the United States who recruited customers and collected gambling debts, forwarding the proceeds to Eremian in Antigua.

Yikes, “recruited customers”?

The Indictment further alleges that Eremian funneled millions of dollars that constituted illegal gambling proceeds to family members in the United States.

Yikes, “illegal gambling proceeds to family members”?

The Information unsealed yesterday alleges that Tierney managed Robert Eremian’s U.S. based finances through a Bank of America bank account in the District of Massachusetts that was funded by Robert Eremian with the proceeds of illegal gambling activities. [...] Tierney provided information [...] that mischaracterized Eremian’s income as commissions and Eremian’s employment as a computer consultant. The Information states, “The defendant Patrice Tierney engaged in a conscious course of deliberate ignorance regarding the true nature of Eremian’s income and Eremian’s ownership of Sports Offshore.”

Though just about everything here is still “alleged” … (except for the part where Tierney admits guilt, lol, for her involvement with all variety of illegal online gambling crimes) … any who might have reason to fear the DOJ can now see an even longer list of potential charges they might wanna hope to dodge, including but not limited to:

- money laundering
- operating an illegal gambling business
- use of wire communication facilities to transmit wagering information
- interstate travel in aid of racketeering
- false tax returns
- witness tampering
- acceptance of financial instruments for unlawful Internet gambling

From QuadJacks (download)

It’s a unique take on the poker world, imho, at a specific moment in time — specifically, here, amid the hubbub over PokerStars’ decision to shut down ops in Washington State.