FTP Lawyer Fires Back at Ponzi Comment

Full Tilt PonziFTP Lawyer Fires Back at Ponzi Comment

Lawyers for FTP fired back at the DOJ today for the comment that US Attorney Preet Bharara made comparing FTP to a “global Ponzi scheme”. Jeff Ifrah an attorney representing Full Tilt told Reuters that he “strongly disagree(s) with the allegation”. Ifrah also commented that his client has “made mistakes” but that he had not seen supporting evidence to support such a characterization.

FTP Black Friday

While Full Tilt’s representation may not see the evidence, thousands of FTP customers that are barred from their money can easily put two and two together. It is now public knowledge that executives for FTP were paid over 440M while still taking money from their customers after the Black Friday crackdown on the company.

FTP Ponzi Scheme

Describing FTP as a Ponzi scheme sounds right on track with everything that has surrounded the company’s dealings over the past two years. Throw in bank fraud, money laundering and a slew of other charges and Ponzi seems to fit right in there. In essence, the Ponzi factor, as applied to FTP comes into play because Full Tilt continued to accept new players even though they did not have the finances to cover incoming bets at tables. As new players came in, the executives were paid, some of the players with substantial wait time on funds were paid, but when the DOJ closed them down, the money stopped coming in. As with any good Ponzi scheme (as if there are any good ones) the system works up to the point that new money stops coming in.

The DOJ is obviously gunning for FTP and rightly so it would now seem. The Black Friday crackdown, at least in the case of Full Tilt, may have saved thousands of other unwitting new players from losing their money.

September 22, 2011 by : posted in Recent News No Comments