Howard Lederer admits no wrongdoing.
Howard Lederer has settled with the US Department of Justice, forfeiting millions in cash and real estate in exchange for the dismissal of all charges relating to his involvement with Full Tilt Poker.
Lederer admitted no wrongdoing but was forced to forfeit funds, two Las Vegas houses and a $60,000 Shelby Cobra sportscar.
The former Full Tilt Poker board member will also pay a $1.25 million civil money laundering penalty.
Details of the forfeiture and settlement were released today in a document from the Southern District of New York.
The following assets belonging to Lederer will be forfeited as part of the settlement:
- All funds in the Lloyds 0402 account
- All funds in LPL Financial accounts
- The Shelby Cobra
- The Kingsclear property (originally puchased for $505k in 1995)
- $30,000 USD, representing proceeds traceable to the sale of the Fawn Chase property
- All proceeds traceable to the sale of the Twin Palms property, which will be sold within 120 days for no less than $440,000 (originally purchased for $905k in 2007).
- All other assets in his accounts at Lloyds which (not including the 0402 account) has a US dollar value of $168,000.
As a further part of the settlement Lederer agreed not to work for or derive money from any internet gambling business in the United States until that activity is regulated.
Exactly how much Lederer must forfeit remains a mystery.
Perhaps frustratingly for former Full Tilt Poker customers, Lederer admits no responsibility, maintaining that FTP was being run as a legitimate company, and that he had no knowledge of any wrongdoing.
The settlement states:
Lederer contends that Full Tilt Poker was a legitimate business providing services to its customers within the bounds of the law, and that prior to April 15, 2011, he was unaware of any wrongful activity at Full Tilt including that the company had become unable to satisfy its player account liabilities.
Total Dollar Value of Forfeiture Not Known
Over the course of his ownership and management of Full Tilt Poker, Howard Lederer was paid at least $42.5 million, according to the Second Amended Complaint filed by the US Attorney's office in September of 2012.
That complaint also stated that most of that money had been moved to accounts at Lloyds and Wells Fargo, including the Lloyds 0402 account described in today's settlement.
But what the settlement does not describe is how much of that $42.5 million was in the Lloyds 0402 account when it was frozen.
Also listed in the settlement is Lederer's LPL Financial accounts, which he allegedly used to set up a retirement fund with $371k of FTP money.
Not including the Lloyds 0402 account, Lederer stands to forfeit funds and real estate totaling roughly $2.5 million. That includes the $1.25 million civil money laundering penalty.
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