Lederer settles with Southern District of New York
Black Friday indictee agrees to forfeit properties, vehicles and bank funds as part of settlement.
Former Tiltware board member Howard Lederer has settled his civil case with the US Attorneys Office, Southern District of New York, without admitting to any wrongdoing as part of his forfeiture.
According to Diamondflushpoker, Lederer has agreed to forfeit funds held in several personal bank accounts, various luxury vehicles including a 1965 Shelby Cobra automobile, his properties in Las Vegas and California and funds related to the sales of various other properties.
As a FTP board member Lederer allegedly pocketed in excess of $42m of the estimated $443m total illicit funds obtained by the operator.
He was among the Full Tilt employees named in the Black Friday indictments, charged with money laundering offences, wire fraud, bank fraud and the operation of an illegal gambling business, as well as the use of relevant property in illegal gambling businesses.
Along with FTP chief executive Ray Bitar, and shareholders Chris Ferguson, Rafe Furst and multiple unnamed individuals, Lederer was also alleged to have distributed hundreds of millions of dollars “To themselves and other owners of Full Tilt Poker” as the operator “failed to protect player funds as promised”.
Furthermore Lederer has agreed “not to work for, or derive money from, either directly or indirectly, through the operation of any internet gambling business in the United States”, at least until when a applicable law change takes place making the offering of such gambling lawful
Lederer would then have to obtain “appropriate authorisation from all relevant governmental regulatory authorities” to do so.
In September a new complaint from the United States Attorney’s Office (USAO) alleged that Lederer used proceeds unlawfully obtained from Full Tilt Poker player accounts to fund personal bank accounts and a pension plan, and to purchase property and automobiles.
It claimed there is “probable cause for forfeiture”, with the USAO citing the forfeitable assets as traceable to money laundering offences, wire fraud, bank fraud and the operation of an illegal gambling business, as well as the use of relevant property in illegal gambling businesses.
Of the estimated US$443m total, the USAO claimed “at least $44,314,997.31 in United States currency that was directly tied to…criminal conduct…” was paid into a bank account in the name of HH Lederer Consulting, with the bulk of that total being paid directly from FTP company Pocket Kings Consulting Ltd.
It added that “between approximately December 26, 2006, through approximately August 2, 2011, at least approximately $42,470,660 of the above-identified illicit funds that had been deposited into the Lederer Consulting Account were transferred into a personal bank account…held in the name of Howard and Susan Lederer.” Susan Lederer is understood by eGR to be Howard Lederer’s wife.