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    Daily Gambling News Update | Tuesday, January 17, 2012

    Posted by Quad Jacks March 14, 2012

    TUESDAY, JANUARY 17, 2012: Ira Rubin pleads guilty. New Jersey governor signs sportsbetting bill, on to the lawsuit. Swindled pros file Rico complaint against UltimateBet software company.

    Ira Rubin pleads guilty: One of the eleven men charged with numerous counts of bank fraud and money laundering in the Black Friday indictments, Ira Rubin, has entered a plea agreement, pleading guilty to three of the nine charges brought against him. Rubin was one of the payment processors who enabled financial transactions to Full Tilt Poker, PokerStars and UB by setting up phony companies such as golf and electronics online stores in an effort to mislead banks who would have otherwise refused to permit payments to online gambling companies.

    A U.S. citizen living and working in Costa Rica, Ira Rubin was arrested in late April 2011 in Guatemala as he was attempting to flee to Thailand. He was denied bail in the United States in June later that year, due to a previous criminal history involving telemarketing fraud dating back to the 1970′s. At the time of his bail hearing, Rubin’s lawyer Stuart D. Meissner stated his side would contest the case, saying: “I do think this entire case is a little bit of an overkill. We will fight the charges. My client wants to address the charges here. He will stay in the U.S. and would like to face the charges here.”

    Under the plea agreement, Mr. Rubin is expected to serve a prison term lasting between 18 to 24 months. He will be sentenced on May 17.
    Sources: Bloomberg News [1] [2], Associated Press, Wall Street Journal

    New Jersey governor signs sportsbetting bill, on to the lawsuit: New Jersey governor Chris Christie has officially signed the state’s sportsbetting bill into law, thereby amending the state’s constitution to eventually permit for the legal offering of sportsbetting by the state’s casinos, racetracks and other licensed locations. But before the law can take practical effect, the United States’ federal ban on sportsbetting (1992′s “PASPA”) must be overturned. The state of New Jersey will commit to this contest by filing a lawsuit in a US district court, led by new state attorney-general Jeff Chiesa, against the federal the government.

    The state’s chances should be much better this time around than they were last year, when a group of state legislators led by state senator Ray Lesniak unsuccessfully tried to file the same kind of lawsuit, but without governor Christie’s support. Last week, following the bill’s approval in the state legislature, Lesniak stated: “I guarantee a victory in the federal courts for New Jersey to be able to enjoy the same benefits from sports betting Congress has given to Nevada.” Today, iMEGA director Joe Brennan Jr. echoed the optimism: “With the successful referendum and this law signed by Gov. Christie today, it’s likely that PASPA will be overturned by the Federal courts. Once that happens, it will be left to each state to decide whether to permit sports betting, and how it will be offered.”
    Sources: iMEGA

    Swindled pros file Rico complaint against UltimateBet software company: Eight professional poker players, including Brad Booth, have filed a legal complaint against EXCAPSA software and ten affiliated “Jonh Does,” claiming the operators of the poker software utilized by UltimateBet consciously conspired to defraud them and others out of up to $20 million, by “creating and making use of an intentional security flaw in the UltimateBet.com software” which enabled the wrongdoers to see opponents’ hole cards during play.

    The suit, filed in a US district court in California, charges the defendants with violations of the RICO Act, fraud, unfair business practices, and “intentional infliction of emotional distress.”

    The complaint makes reference to a network of “owners, agents, and employees of Excapsa and its various subsidiaries that operated UltimateBet” which consciously carried out the above offenses. Reads the complaint: “Evidence, some of which is discussed below, has arisen that some of the founders and management of UltimateBet and Excapsa, including Greg Pierson, Jon Karl, Jack Bates, Russ Hamilton, and others who formerly operated (and may continue to be involved in the operation of) UltimateBet were likely aware of or involved with the conspiracy to cheat players.”
    Sources: Courthouse News Service, original complaint

    QuadJacks – Tuesday, January 17, 2012

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