Full Tilt Poker's Ray Bitar Pleads Not GuiltyTurns Himself Into FBI On Monday Morning |
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Ray Bitar, founder of defunct Full Tilt Poker, was arrested Monday morning at John F. Kennedy International Airport in New York, the Department of Justice said. Bitar, who had been in Ireland, turned himself in and pleaded not guilty. He is being held on $2.5 million bond, the AP reported.
Bitar was one of 11 individuals charged as part of Internet poker’s Black Friday on April 15, 2011.
After surrendering, the 40-year-old was hit with a “superseding indictment,” also accusing him of defrauding poker players. Prior to turning himself in, Bitar was facing up to 65 years in prison. Now, he faces 145.
The Associated Press reported that the government had been working with Irish authorities and was prepared to extradite Bitar if he did not return voluntarily.
“Raymond Bitar will now be held criminally responsible for the alleged fraud he perpetrated on his U.S. customers that cost them hundreds of millions of dollars,” Manhattan U.S. Attorney Preet Bharara said in a press release. “The indictment alleges how Bitar bluffed his player-customers and fixed the game against them as part of an international Ponzi scheme that left players empty-handed.”
“I know that a lot of people are very angry at me,” Bitar said, the AP reported. “I understand why. Full Tilt should never have gotten into a position where it could not repay player funds.”
Poker pro Blair Hinkle, who has $1 million stuck on the site, told Card Player in June that Bitar is “probably the worst” individual from the Full Tilt Poker scandal. Veteran player Daniel Negreanu blogged that Bitar and others “deserve a few swift baseball bat swings to the groin.”
Bitar is charged with betraying former customers by using their funds to pay for Full Tilt operations, as well as divvy out more than $430 million to himself and other owners. Howard Lederer, Chris Ferguson and Rafe Furst, who were named in September 2011’s amended civil complaint, are not facing criminal charges for their alleged role in the fraud.
About $350 million stands as outstanding debt to players worldwide.
Bitar is also accused of telling employees to lie about the company’s finances, which began to unravel after payment processing issues created “phantom funds” on the site.
After Black Friday, Bitar is accused of luring customers to continue playing by maintaining that their funds were safe. Instead, the government alleges, the site was acting as a Ponzi scheme by using new deposits to pay old debts, continue operating and pay executive salaries.
The company misled former players for months as to why their money was tied up.
Also mentioned in the superseding indictment is Nelson Burtnick, former head of Full Tilt Poker’s payment processing. Burtnick is still at large.
Bitar is the seventh of the Black Friday defendants to have been arrested. Bradley Franzen, Ryan Lang, Ira Rubin, Brent Beckley, Chad Elie and John Campos have each pleaded guilty to their some charges. Campos has been the only one to receive a sentence.
Campos had faced up to 45 years in prison, but received three months after taking a plea deal.
According to an alleged internal email from Bitar leaked on poker forum TwoPlusTwo, he believes his surrender will help players get paid via a PokerStars deal to buy Full Tilt Poker. Neither PokerStars, nor the DOJ, has ever acknowledged such a possibility.
Follow Brian Pempus on Twitter — @brianpempus
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