FTP - Department of Justice can Recompense, French Investors Get Green Light

Poker Rooms | estimated reading time
2011. September 30.
Although the decision of the Alderney Gambling Control Commission (AGCC) on Thursday raised panic among players, Full Tilt Poker's future fate really depends on the investor.
After the AGCC announced yesterday in an official report that they had revoked FTP's license, The United States Department of Justice (DoJ) also released a statement to clarify the situation for the ones having money stuck on Full Tilt. Although the DoJ claims no responsibility in the statement, it suggests that the Deaprtment directly reimbursing the players could be another option.

Department of Justice

The statement of the Department of Justice reads as below:

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.


The above statement appeared on the DoJ Southern District of New York Office website, nine days after the civil complaint against Full Tilt Poker was amended. The statement is probably a response to the open letter sent by the Poker Players Alliance (PPA) last week, in which they request the Department to reimburse Full Tilt Poker players from the money seized.

Full Tilt Poker's current situation; will there be a new investor?

Earlier, Jeff Ifrah, FTP lawyer stated that in the case of the AGCC revoking Full Tilt's license, their current potential clients would step back from buying FTP. Although the AGCC did revoke the license on Thursday, it did that with one important concession: with a new board of directors, Full Tilt could operate again. This means that there is still plenty of latitude for FTP to findf new investors and the decision only debars the current leaders the right to restart the business.

AGCC vs Full Tilt Poker

There were four FTP companies altogether that bore a license from the AGCC, in four different parts of the world. Three have lost their licenses, and one remained in abeyance. The reason why FTP was holding four different licenses at four different companies is unclear, but it probably had to do with the firm operating in the US.

The three companies that have lost the licenses are Vantage Ltd, Filco Ltd and Oxalic Ltd. These were the licenses thw had been active, while the fourth, Orinic Ltd only received a license not long before Black Friday, and is not clear what intentions FTP had with this one. This license, though, has never been activated.

The AGCC did not revoke the license granted to Orinic Ltd, it only left it suspended. And this is exactly why FTP still has a back door open. Because Orinic Ltd did not lose its "trustworthy" status on paper, this license will be there to become activated in the case of a new owner. If a new owner did not come, the whole allowance procedure would have to start over, as those firms that had their license revoked would not be allowed to operate again. So, if Orinic Ltd fulfills the requirements of the AGCC license and pays back the players, the license can instantly be activated.

Currently, the French investors have the ball: if they can prove that they are capable of refunding players, they can settle with the United States Department of Justice and can create circumstances that are fully clear, Full Tilt Poker can still continue operating despite the decision made by the AGCC yesterday.

The whole Full Tilt Poker story (with latest on top):

BREAKING NEWS - Full Tilt Poker License Revoked

The Silence of the AGCC – The French May Back Out if Licence Is Revoked

Reactions to DoJ Charges against FTP

FTP Misery to End with French Investors?

BREAKING NEWS - Full Tilt Poker Leaders 'Stole Player Funds'

Full Tilt Poker vs AGCC - Trial Goes on Today

Full Tilt Poker Statement: Saving €12 Million

Full Tilt Poker's Hearing Postponed to September 19th

Full Tilt Poker - The Latest News

Online Poker Companies to Buy Full Tilt Poker?

Full Tilt Poker Pays License Fee, Fires Employees

AGCC Hearing - Negotiations in Private, No Investors Present

Full Tilt Poker Players Petition - fulltiltscrewed.me

Full Tilt Poker Shutdown - PartyPoker up by 35%, Cake by 40%

Full Tilt Sale Might Be Sealed Next Week

Fulltiltpoker.fr Lincense Also Suspended

AGCC Comments on Ongoing Discussions - FTP to Be Re-opened

Full Tilt Poker is Sold, Los Angeles Times Claims

Full Tilt Poker Comments, Looks for New License

PokerStars Reaction to Full Tilt Poker Suspension - PS Funds Are Safe

BREAKING NEWS - Full Tilt Poker's Operating License Suspended
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