Unites States v. Pokerstars, et al

Filing 210

STIPULATION AND ORDER OF SETTLEMENT: IT IS HEREBY STIPULATED, ORDERED AND AGREED, by and between Plaintiff United States of America, by its attorney Preet Bharara, United States Attorney, Assistant United States Attorneys, Sharon Cohen Levin, Michael D. Lockard, and Jason H. Cowley, of counsel, and the Claimant, by its counsel, Michael Bachner, Esq., that: The Claimant and Gregory Colton ("Colton"), Managing Director of Claimant, represent that approximately $6,274,751.59 is the total amount of Defendant Funds directly traceable to Claimant's payment processing for Redfall International. Claimant agrees that $6,274,751.59 of the Defendant Property shall be forfeited to the United States ("the Forfeited Funds"), for disposition according to law, pursuant to Title 18, United States Code, Section 981, without admitting any liability thereunder. Four Oaks Bank and Trust Co. ("Four Oaks"), upon being provided a copy of this Stipulation and Order shall issue a check for $6,062,116.49 of the Forfeited Funds payable to the United States Marshals Service, Southern District of New York, and send such check to the address herein. 3. The remainder of the Forfeited Funds, $212,635.10 (the "Four Oaks Funds"), shall be released and conveyed to Four Oaks to reimburse Four Oaks for expenses incurred as a result of LST Financial's processing of funds at Four Oaks. The Claimant hereby withdraws its claim and agrees that it shall not file any claim or petition for restoration or remission relative to the Defendant Property, or any action or motion seeking to collaterally attack the seizure, restraint, or forfeiture of the Defendant Property (including the Forfeited Funds). Furthermore, the parties hereby waive all rights to appeal or to otherwise challenge or contest the validity of this Stipulation and Order of Settlement. Each party shall bear its own costs and attorneys' fees. (Signed by Judge Leonard B. Sand on 7/11/2012) (djc)

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

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UNITED STATES OF AMERICA,

I DOCUMENT

IELECTRONICALLY FILED
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I! DATE FILED: ;} -\ \ - \ ')..
STIPULATION AND ORDER
OF SETTLEMENT

Plaintiff,
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;lbDS SONY

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POKERSTARS, et al.,

11 civ. 2564 (LBS)

Defendants;
ALL RIGHT, TITLE AND INTEREST IN
THE ASSETS OF POKERSTARS, et al.,
Defendants-in-rem.

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WHEREAS, on or about July 19, 2010, a seizure warrant
for, inter alia, the following property was issued by the United
States District Court for the Southern District of New York:
1.

All funds formerly on deposit at Four
Oaks Bank and Trust Company, Four Oaks,
North Carolina, in account numbered
520055501, held in the name of LST
Financial, and all property traceable
thereto;

2.

All funds formerly on deposit at Four
Oaks Bank and Trust Company, Four Oaks,
North Carolina, in account numbered
520057101, held in the name of LST
Financial, and all property traceable
thereto;

3.

All funds formerly on deposit at Four
Oaks Bank and Trust Company, Four Oaks,
North Carolina, in account numbered
520064401, held in the name of LST
Financial, and all property traceable
thereto;

4.

All funds formerly on deposit at Four
Oaks Bank and Trust Company Four Oaks
North Carolina in account numbered
520065201 held in the name of LST
Financial and all property traceable
theretoi
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5.

All funds formerly on deposit at Four
Oaks Bank and Trust Company Four Oaks
North Carolina in account numbered
520069501 held in the name of LST
Financial, and all property traceable
theretoi
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(collectively, the "Defendant Property") i
WHEREAS, on or about April 14, 2011, a verified
complaint, 11 Civ. 2564 (LBS)

(the "Complaint") was filed under

seal in the United States District Court for the Southern
District of New York seeking the forfeiture of, inter alia, the
Defendant Property, pursuant to Title 18, United States Code,
Sections 1955(d), 981(a) (1) (A), and 981(a) (1) (C) i
WHEREAS, on or about May 11, 2011, the United States
provided notice of the filing of the Complaint to LST Financial,
Inc.

("LST" or the "Claimant");
WHEREAS, beginning on May 17, 2011, and for thirty

consecutive days thereafter, pursuant to Rule G (4) (a) of the
Supplemental Rules for Certain Admiralty and Maritime Claims and
Asset Forfeiture Actions, plaintiff United States of America
posted notice of the Verified Complaint against the defendantsin-rem, on www.forfeiture.gov, the government internet site, and
proof of publication was filed with the Clerk of the Court on

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November 22, 2011;
WHEREAS, on or about June 16, 2011, the Claimant filed
a verified claim in the Defendant Property asserting an ownership
in said property;
WHEREAS, on or about September 21, 2011, a verified
amended complaint in this action (the "Amended Complaint") was
filed seeking the forfeiture of, inter alia, the Defendant
Property;
WHEREAS, the Claimant, admitting no wrongdoing in
connection herewith, has agreed to settle this matter; therefore
IT IS HEREBY STIPULATED, ORDERED AND AGREED, by and
between Plaintiff United States of America, by its attorney Preet
Bharara, United States Attorney, Assistant United States
Attorneys, Sharon Cohen Levin, Michael D. Lockard, and Jason H.
Cowley, of counsel, and the Claimant, by its counsel, Michael
Bachner, Esq., that:
1.

The Claimant and Gregory Colton ("Colton"),

Managing Director of Claimant, represent that approximately
$6,274,751.59 is the total amount of Defendant Funds directly
traceable to Claimant's payment processing for Redfall
International.

Claimant agrees that $6,274,751.59 of the

Defendant Property shall be forfeited to the United States ("the
Forfeited Funds"), for disposition according to law, pursuant to
Title 18, United States Code, Section 981, without admitting any

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liability thereunder.
2.

Four Oaks Bank and Trust Co.

("Four Oaks"), upon

being provided a copy of this Stipulation and Order shall issue a
check for $6,062,116.49 of the Forfeited Funds payable to the
United States Marshals Service, Southern District of New York,
and send such check to the address below:
United States Attorney's Office
Southern District of New York
Attn: Sally Hassanein
One Saint Andrews Plaza
New York, NY 10007.
3.

The remainder of the Forfeited Funds, $212,635.10

(the "Four Oaks Funds"), shall be released and conveyed to Four
Oaks to reimburse Four Oaks for expenses incurred as a result of
LST Financial1s processing of funds at Four Oaks.
4.

The remainder of the Defendant Property shall be

returned to the LST accounts at Four Oaks in which the funds were
present prior to July 19, 2010, and made available to LST and
Four Oaks.
5.

The Claimant and Colton each represents that

Claimants' clients other than Redfall International operated
lawful businesses and that the funds the Claimant received or
possessed for those clients were lawfully derived.
6.

Claimant and Colton each further agrees not to

knowingly provide, either directly or indirectly, payment
processing services for internet gambling, including internet

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poker, until if and when a change in applicable law takes place
making such gambling lawful in the United States and Claimant
and/or its internet gambling customer obtains appropriate
authorization from all relevant governmental regulatory
authorities.
7.

The Claimant is hereby barred from asserting any

claim against the United States or any of its agents and
employees (including, without limitation, the Federal Bureau of
Investigation ("FBI") and the United States Attorney's Office for
the Southern District of New York ("USAO SDNY"}) in connection
with or arising out of the United States' seizure, restraint,
and/or constructive possession of the Defendant Property,
including, without limitation, any claim that the United States
did not have probable cause to seize and/or forfeit the Defendant
Property (including the Forfeited Funds), that the Claimant is a
prevailing party or that the Claimant is entitled to attorneys'
fees or any award of interest.
8.

The Claimant represents that it is the sole owner

of the Forfeited Funds, and agrees to hold harmless the United
States and any and all of its agents and employees (including,
without limitation, the FBI and the USAO-SDNY)

from any and all

third-party claims in connection with or arising out of the
United States' seizure, restraint, and/or constructive possession
of the Defendant Property (including the Forfeited Funds) .

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9.

The Claimant hereby withdraws its claim and agrees

that it shall not file any claim or petition for restoration or
remission relative to the Defendant Property, or any action or
motion seeking to collaterally attack the seizure, restraint, or
forfeiture of the Defendant Property (including the Forfeited
Funds).

Furthermore, the parties hereby waive all rights to

appeal or to otherwise challenge or contest the validity of this
Stipulation and Order of Settlement.
10.

This Stipulation and Order of Settlement shall in

no way be deemed an admission of culpability, liability, or guilt
on behalf of the Claimant, or its respective agents, officers or
employees, past and present.

Further, this Stipulation and Order

of Settlement shall in no way constitute any reflection upon the
merits of the claims and defenses asserted respectively by the
United States and the Claimant.
11.

Each party shall bear its own costs and attorneys'

fees.

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11.

The signature pages of this Stipulation and Order

may be executed in one or more counterparts, each of which will
be deemed an original but all of which together will constitute
one and the same instrument.

Signature pages may be by fax and

such signatures shall be deemed as valid originals.
AGREED AND CONSENTED TO:
PREET BHARARA
United States Attorney for the
Southern District of New York
Attorney or Plaintiff

By:
on Cohen Le in
ael D. Lockard
Jas n H. Cowley

Assistant United States Attorneys

One St. Andrew's Plaza

New York, New York 10007

[phone]/2193/2479

DATE

[ADDITIONAL SIGNATURES ON FOLLOWING PAGE]

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LST FINANCIAL, I

of LST Financial, Inc .

. Bachner, Esq.

n

& Associates, PC
Broadway, Suite 1610
New York, NY 10006
Tel: [phone]
Attorney for Claimant

SO ORDERED:

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UNITED STATES DISTRICT JUDGE

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