Full Tilt Poker CEO Finally Arrested

On Monday, founder and CEO of Full Tilt Poker Ray Bitar plead not guilty to charges of bank fraud, illegal gambling offenses and money laundering in a federal court in Manhattan. The charges were filed by the FBI on April 15, 2011 but Bitar had sought refuge in Ireland where Full Tilt Poker has its headquarters. However, these are not the only charges against Bitar.

He will be indicted on 9 superseding charges which are: 1 count of Operation of Illegal Gambling Business, 3 counts of Wire Fraud, 1 count of Conspiracy to Defraud Banks, 2 counts of Money Laundering and 2 counts related to the Unlawful Internet Gambling Enforcement Act (UIGEA). The head of the processing center for Full Tilt Poker, Nelson Burtnick, has also had these charges filed against him but he remains at large.

In an email reportedly written by Bitar and published after he surrendered to police, he explained that his decision to return to America and face the charges is part of the process for maintaining and protecting Full Tilt’s “assets and potential” which will help seal the deal between Full Tilt and Poker Stars.

Preet Bharara, the US Attorney, stated in a press release that “Full Tilt Poker did not protect player funds in segregated accounts, and instead, used them for whatever purposes Bitar directed, including to pay him and other owners millions of dollar. Because player funds were being used to cover operating expenses, Full Tilt Poker experienced and increasing shortfall…” Bitan asked his employees to lie about the shortfall of $130 million dollars and thus duped Full Tilt Poker players. On March 31, 2011 it was calculated that Full Tilt Poker owed players a total of $390 million dollars but only had $60 million on hand.