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Drawn Out

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Drawn Out - Sat Apr 16, 2011, 02:13 AM
(#1)
RedLetterman's Avatar
Since: Jun 2010
Posts: 665
From someone with a bit of applied knowledge....

" #1 QuantFund
stranger

Join Date: Apr 2011
Posts: 8


A Former Lawyer's take
This is just a quick post a friend told me I should make to shed some light on the situation:

Quick Bio, I graduated from UT Austin with a general finance degree before getting my law degree from Georgetown. I worked as general in house council for probably the most infamous (clue: vampire squid) investment bank on the street during their tango with the Department of Justice last year. I think this situation is very similar.

I currently work for an energy fund in texas with a financial processing center located in the Caymans, mostly handling inflowing investment capital, so I also have a working knowledge of how these online poker sites handle their capital inflow.

I play poker casually on stars, one of my best friends plays poker for a living, so I have a dog in this fight.
That said, I have some general things to say:

1.) No company has ever survived an indictment by the DOJ. Ever. (I’m not talking about a criminal investigation, but actual charges – as in this situation)

2.) In this thread, a lot of people are implying that class actions suits or speaking with their representatives would help… Working with the DOJ in procuring information about my firm has convinced me of the contrary:

a.) the DOJ isn’t some “organization” you can pressure – they don’t really answer to the mass of voters because they aren’t elected.
b.) The DOJ isn’t an entity you can make fold or bring suit against. They will absolutely deflect opposing litigation – think sovereign immunity. I know it’s difficult to imagine that in our American democracy anyone who is above the law, but the DOJ can basically skirt constitutional law at will. They never proved our bank did anything “unlawful” but we still paid a $500 million fine. It was basically an excise tax on financial institutions and allowed the DOJ to not lose face. There was NO legal precedence for it. Which leads to my last point:
c.) No amount of connection will alleviate the situation (hence why convincing your representative is pointless). My firm was the most connected firm on the street. Many of our alum are working in high ranking positions in the government (they run the Treasury department). We still paid a fine.

3.) Processing inflowing capital has very stringent requirements – even if you’re located abroad. If the DOJ has made a formal indictment then you can be sure they HAVE a case. And even if they don’t there won’t be enough confidence left in either of the big 3 poker sites for players (from the States) to ever flock back (see: Arther Andersen). And even if the case falls flat Pokerstars/Tilt/etc will be forced into a settlement and you’ll be looking at a fine upwards $1 billion , USD.

4. you should attempt to withdrawal your money. I can only imagine some are recommending against it because they already have, and are afraid that because online poker sites don’t have “side pockets” that the effect will be similar to a “run on a bank.” While this is true, I’d urge you to try and withdrawal now.

The Department of Justice doesn’t lose – and in the rare instance that it do, they still raze the questionable firm to the ground.

Seek any recourse you can but get out now – whether it’s $500 or $50,000.
 
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Sat Apr 16, 2011, 02:16 AM
(#2)
KOingDonks's Avatar
Since: Jan 2010
Posts: 322
Relax, PokerStars is bigger than DOJ LOL
 
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Sat Apr 16, 2011, 03:02 AM
(#3)
Hunt2day's Avatar
Since: Dec 2010
Posts: 66
It allowed me to cash out about 30 mins ago, sent an email conformation as normal, won't let me deposit, i tried it out of curiosity. Now I just hope that my money didn't just disappear, but is actually being deposited in my bank. I cannot cash out or deposit on FTP, but can still play any game on it for now. AP, i can still play any game, have not tried to cash or deposit on AP.

GL to all, but am pretty sure in all the reading I've been doing , on tv/radio etc, this is big, and is not going to just go away in a cpl weeks or months, I honestly believe that US online poker is going to be ground to a halt (on FTP, PS and AP/UB) within the next cpl weeks, and will be quite some time before it is straightened out.
Go out buy your self a decent little poker table, have some true "home games" and hit the casinos.
Until the US has it's own sites in swing with full taxation, the fat lady is warming up.
Hunt2day
 
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Sat Apr 16, 2011, 03:09 AM
(#4)
hemetdennis's Avatar
Since: Oct 2010
Posts: 2,019
BronzeStar
Quote:
Originally Posted by Hunt2day View Post
It allowed me to cash out about 30 mins ago, sent an email conformation as normal, won't let me deposit, i tried it out of curiosity. Now I just hope that my money didn't just disappear, but is actually being deposited in my bank. I cannot cash out or deposit on FTP, but can still play any game on it for now. AP, i can still play any game, have not tried to cash or deposit on AP.

GL to all, but am pretty sure in all the reading I've been doing , on tv/radio etc, this is big, and is not going to just go away in a cpl weeks or months, I honestly believe that US online poker is going to be ground to a halt (on FTP, PS and AP/UB) within the next cpl weeks, and will be quite some time before it is straightened out.
Go out buy your self a decent little poker table, have some true "home games" and hit the casinos.
Until the US has it's own sites in swing with full taxation, the fat lady is warming up.
Hunt2day
IN MOST OF THE U.S. IT IS ILLEGAL TO PLAY POKER AT HOME FOR MONEY

GO DUCKS

 
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Sat Apr 16, 2011, 03:17 AM
(#5)
ericlee1984's Avatar
Since: Nov 2010
Posts: 311
BronzeStar
Quote:
Originally Posted by hemetdennis View Post
IN MOST OF THE U.S. IT IS ILLEGAL TO PLAY POKER AT HOME FOR MONEY

GO DUCKS

Is it still legal for me to fart in the bathtub and bite the bubbles? they cant take that away from me i hope
 
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Sat Apr 16, 2011, 04:21 AM
(#6)
hemetdennis's Avatar
Since: Oct 2010
Posts: 2,019
BronzeStar
Quote:
Originally Posted by ericlee1984 View Post
Is it still legal for me to fart in the bathtub and bite the bubbles? they cant take that away from me i hope

only if you payed the tax on your water bill

 

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