Full Tilt issues new statement
Operator admits it was not prepared for DoJ actions, and cites "unprecedented" payment processor issues.
Full Tilt Poker has issued a new statement to players today, in which it admits it was unprepared for the “far-reaching, US government enforcement effort of Black Friday.”
The latest update, which was sent out to online poker community site PokerStrategy.com in the early hours of this morning, comes two weeks before the scheduled resumption of the operator’s public hearing before the Alderney Gambling Control Commission (AGCC).
It explained that it “Never anticipated that the [US Department of Justice (DoJ)] would proceed as it did by seizing our global domain name and shutting down the site worldwide.”
The news follows lawyer Jeff Ifrah “ who last week told eGaming Review that a management overhaul would likely follow any takeover of the company “ answering players’ questions on the Two Plus Two poker forums.
Today’s statement, the second in as many weeks following the recent update on negotiations, also contains the revelation that “Over the two years preceding Black Friday, the US government seized approximately US$115M of player funds located in US banks,” and cites “unprecedented issues with some of its third-party processors that greatly contributed to its financial problems.”
Several payment processors were named in the Black Friday indictments, including 41-year-old Bradley Franzen, whose guilty plea to authorities in May over Black Friday charges detailed a $60m shortfall over which the company requested his help, and accused FTP of using “shell companies and phony websites” to avoid government restrictions.
While the identities of potential investors remains unknown, FTP has at least given a greater insight into the number of interested parties, explaining today that “At least six of those groups, including hedge funds, operators of other internet businesses and individual investors, have visited Dublin to inspect the operation.”
Last week Ifrah told eGR that only one of the parties concerned had entered into discussions with the DoJ, but he also confirmed that the period of exclusivity with that particular investor had ended, thus allowing other parties to come forward and express an interest.
In a separately arranged question and answer session on Two Plus Two, Ifrah moved to quash rumours that potential deals had previously been rejected, while reaffirming the company’s position that any deal would require the repayment of players in the United States and elsewhere.
He also confirmed that the rescheduled AGCC hearing is set to go ahead on 15 September, defined as the latest possible date when the original hearing in July was adjourned.