In a move that few ever expected to see, PokerStars founder Isai Scheinberg this week handed himself over to US authorities to face charges brought in poker’s infamous Black Friday indictments.
PokerStars cofounder Isai Scheinberg has pleaded not guilty to the charges filed against him and been released on $1 million bail https://t.co/KIEw1HRSPF pic.twitter.com/9NTd02L50e
— Forbes (@Forbes) January 24, 2020
73-year old Isai Scheinberg, the only one of the 11 men indicted on April 15th 2011 yet to be sentenced by the US authorities. He flew voluntarily to New York, according to Forbes.com.
From there, authorities took him to Manhattan’s federal court and he pleaded not guilty to the five charges of in 2011. We have listed these charges below. Later one he left prison on a $1million bail after surrendering his passports.
Isai Scheinberg charges
- Conspiracy to violate Unlawful Internet GamblingEnforcement Act (UIGEA)
- Violation of Unlawful Internet GamblingEnforcement Act (UIGEA)
- Operation of illegal GamblingBusiness
- Conspiracy to commit Bank Fraud
- Wire Fraud and Money LaunderingConspiracy
His representatives have so far refused to comment. However, federal prosecutor Olga Zverovich stated: “We have an agreement in principle on the basic terms.”
It has been reported that US Federal prosecutors had launched extradition proceedings against Scheinberg, following a visit he made to Switzerland.
Although he contested those proceedings, it would appear his appearance in New York this week is designed to put the still-active ghosts of the past decade to rest.
Scheinberg has previously cooperated with US authorities. He helped to resolve the Full Tilt Poker situation that saw an estimated $330 million of player funds disappear into a black hole.
Under Scheinberg, a deal was struck in which PokerStars bought out Full Tilt in a $731million deal. The company used the money in part to recompense the majority of Full Tilt players who had funds stolen.
Part of the deal involved Scheinberg giving up control of PokerStars. Afterward, his son Mark – who was not charged in the indictment – would be taking over and selling the company to the Amaya Group in 2014.
Many in the poker community were feeling nostalgic at the Isai Scheinberg news. The modern PokerStars under Amaya and David Baazov is taking a new direction that caused huge problems among its players.
https://twitter.com/AarontheB/status/1221183772693073924?s=20
The removal of the SuperNovaElite benefits led to multiple strikes, while increased rake and gimmicky, lottery-style games became the norm for the new PokerStars.
The Black Friday 11
A look at the 11 men indicted in the April 2011 Black Friday swoop by the US Attorney’s office for New York in conjunction with the FBI, reveals a slew of charges, sentences, and deals.
Ray Bitar
(CEO of Tiltware, the company behind Full Tilt Poker)
Seen by the poker community as one of the guiltiest of all in the Full Tilt scandal, Bitarpleaded guilty to 5 charges in 2013.
He was sentenced to ‘time-served’ (one week in jail) and ordered to forfeit $40million in cash, plus other assets.
Bitar avoided a lengthy jail sentence mainly because of “extraordinary medical circumstances,” according to the US Attorney’s office.
Scott Tom
(Absolute Poker part-owner, pictured below left with father Phillip Tom)
Another who is unlikely to ever be forgiven for his actions, Scott Tom served one week in jail in 2017.
He returned from his Antiguahideout and finally pleaded guilty to a single misdemeanor charge of being ‘an accessory after the fact in the transmission of gambling information’ and fined $300,000.
Brent Beckley
(AP payments director)
Beckley, the step-brother of Scott Tom, was sentenced to 14 months prison time after pleading guilty to violating U.S. gambling laws and committing bank fraud. He had $300,000 seized and was handed a $30,000 fine.
Both Beckley and Tom are believed to have been heavily involved in fixing poker and blackjack outcomes. The Absolute Poker ‘potripper’ scandal chief being one of them.
Ira Rubin
(payment processor)
Rubin processed payments across the four major poker sites. Therefore the judge sentenced him to 3 years in prison after the authorities extradited him from Guatemala. The presiding Judge Kaplan described him as“an unreformed con man and fraudster.”
Chad Elie
(payment processor)
The judge sentenced Elie to five months in prison for his part in a scheme that created phony online companies designed to hide the fact that payments were actually going to offshore gambling sites.
John Campos
(part-owner of bank)
Campos, at the time Chairman of the Board at Sunfirst Bank in Utah, was jailed for 3 months.
He also received a lifetime ban from working in the banking industry after pleading guilty to a misdemeanor charge based on using fraudulent methods for payment processing.
Nelson Burtnick
(Tiltware payments director)
41-year old Burtnickpled guilty to one count of conspiracy to accept funds in connection with unlawful Internet gambling, commit bank fraud, and commit money laundering; and two counts of accepting funds in connection with unlawful Internet gambling.
Bradley Franzen
(payment processor)
Franzen turned himself in to the FBI just 3 days after the Black Friday indictments. Later, he pleaded guilty of conspiracy and other charges.
He faced a maximum term of 30 years imprisonment. However, a lesser sentence was recommended.
Ryan Lang
(payment processor)
Lang pleaded guilty to several conspiracy charges. He told the court that he operated from Canada between 2010 and 2017, helping to trick banks into processing payments for poker sites.
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