Final Table: Analyzing the Full Tilt Ponzi Scheme

[Final Table]

Today on The Final Table, we discussed the big breaking poker news of the day -- the US Attorney in Manhattan who filed the Black Friday indictments has added to those charges a federal lawsuit against Full Tilt founders Howard Lederer, Chris Ferguson, and Rafe Furst, saying they weren't running an online poker company, they were operating a "global ponzi scheme." We went over each detail of the federal government's allegations, including the $444 million that Full Tilt paid to its owners over four years, how it continued accepting player funds despite owing $300 million to players around the world while have only $6 million accessible, and how Full Tilt insiders (to quote Preet Bahrara, the US Attorney for the Southern District of New York) "lined their own pockets with funds picked from the pockets of their most loyal customers while blithely lying to both players and the public alike about the safety and security of the money deposited."

We got some legal analysis from attorney Josh Schindler about whether Lederer, Ferguson, and Furst are facing a jail sentence and seizure of their assets and property, and if the Department of Justice would then distribute those funds to players who had money in Full Tilt's accounts. We also discussed the $130 million in "phantom funds" that Full Tilt allowed players to deposit and play with, even though it was never transferred from their bank accounts.

In our guest segment, we spoke with Vince Van Patten, who is now in his tenth season of co-hosting the World Poker Tour telecasts with Mike Sexton. Vince is at the Borgata Poker Open, which boasts the largest field in WPT history. We talked to him about changes to this season of the WPT, whether he'll play any of the events, and why he thinks the controversy over streaming final tables with hole cards is overblown. He also revealed what goes on in the Hollywood home games he's been part of for many years.

In our poker coach segment, John Kim of StackEmCoaching.com (use the promo code "finaltable" for a free trial) explained the strategy behind "donk betting."

Listen, then click here to subscribe to these podcasts via iTunes!

[The 6th Wilbury]

Phillips: They are definitely... they're in the wrong. They've mismanaged... hopefully, that's all they've done. They've just mismanaged and misappropriated and just did things because, you know.

Harris: Well, this complaint goes beyond "mismanagement." This actually uses the word "defrauded."

Paul, I'm with you when it comes to comparing what Tilt has done (or allegedly has done) versus what Russ Hamilton/UB did, and I'm glad you pulled no punches during this part of the discussion. I know DP still disagrees with you, and he's certainly entitled to that opinion, but given all of the developments of the past few months in re Full Tilt, I've changed camps and joined the crowd that puts Tilt farther down on my sh*t list.

Anyway, my favorite poker shows are ones that have this type of intelligent yet unrestrained discussion, which is why I enjoy the 2+2 PokerCast and the Rabbit Hunt, and was a huge fan of The Poker Beat and Big Poker Sundays in their days. Very nice work.

[Final Table]

Thanks. I just wrote a little bit more on the subject for my blog: Paul Harris Online: Poker Ponzi Followup

[TOCurmudgeon]

Two things notable in this show: 1. Attorney Josh Schindler throw-away line - something like "if you can believe anything that the DOJ says" and, 2. Dennis Phillips refusal to buy into the current mob mentality, which I appreciate.

[Final Table]

Sorry -- here's the correct link for the podcast: The Final Table Radio Show: Final Table #138: Full Tilt's Ponzi Scheme + Vince Van Patten