Unites States v. Pokerstars, et al

Filing 238

MEMORANDUM OF LAW in Support re: 237 MOTION For (1) the Entry of a Proposed Stipulated Order of Settlement Between the United States and Certain Absolute Poker-Affiliated Entities and (2) the Interlocutory Sale of All Assets of Those Entities. MOTION For (1) the Entry of a Proposed Stipulated Order of Settlement Between the United States and Certain Absolute Poker-Affiliated Entities and (2) the Interlocutory Sale of All Assets of Those Entities.. Document filed by United States Of America. (Attachments: # 1 Text of Proposed Order)(Cowley, Jason)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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UNITED STATES OF AMERICA,
:
Plaintiff,
:
- v :
POKERSTARS, et al.
:
Defendants;
:
11 Civ. 2564 (LBS)
ALL RIGHT, TITLE, AND INTEREST IN
THE ASSETS OF POKERSTARS, et al.;

:
:

Defendants-in-rem.
:
:
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WHEREAS, on or about April 14, 2011, the United States
commenced the instant action against the Defendant Property by
filing, under seal, a Verified Complaint, 11 Civ. 2564 (LBS) (the
“Complaint”) in the United States District Court for the Southern
District of New York, seeking the forfeiture of, inter alia, all
assets of Absolute Poker (defined below) pursuant to Title 18,
United States Code, Sections 1955(d), 981(a)(1)(A), and
981(a)(1)(c), and seeking civil money laundering penalties
pursuant to Title 18, United States Code, Section 1956 against,
inter alia, Absolute Poker, Ultimate Bet, SGS Systems Inc., Trust
Services Ltd., Fiducia Exchange Ltd., Blue Water Services Ltd.,
Absolute Entertainment, S.A. and Blanca Games, Inc. of Antigua
(collectively, “Absolute Poker”);

WHEREAS, on or about October 31, 2011, Blanca Games,
Inc., on behalf of itself and Absolute Poker, SGS Systems Inc.,
Trust Services Ltd., Fiducia Exchange, Ltd., Blue Water Services
Ltd., and Absolute Entertainment, S.A., filed a claim asserting
an interest in the assets of Absolute Poker;
WHEREAS, on or about July ___, 2012, the Court entered
a stipulated order of settlement (the “Absolute Settlement”)
between the United States Attorney’s Office for the Southern
District of New York and the following Absolute Poker-affiliated
entities:
1.

Absolute Poker

2.

Ultimate Bet

3.

Absolute Entertainment, S.A.

4.

Blanca Games, Inc.

5.

Hoop & Javelin Holdings Limited

6.

Lacrosse Holdings Limited

7.

Hoop Payment Solution Services Ltd.

8.

Morning Bliss Overseas Ltd.

(Collectively, the “Absolute Poker Settlement Group”);
WHEREAS the Absolute Settlement provides for the
Forfeiture of all assets of the Absolute Poker Settlement Group
(the “Proposed Forfeited Absolute Assets”);

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WHEREAS, previously, on or about September 30, 2011,
the Commonwealth of Kentucky (“Kentucky”) filed a claim asserting
an ownership interest in certain of the Proposed Forfeited
Absolute Assets, specifically, the domain names absolutepoker.com
and ultimatebet.com;
WHEREAS, previously, on or about January 5, 2012,
Avoine - Servico De Consultadoria E Marketing, LDA (“Avoine”)
filed a claim asserting an ownership interest in the Proposed
Forfeited Absolute Assets;
WHEREAS, an interlocutory sale of the Proposed
Forfeited Absolute Assets is necessary in order to avoid further
deterioration in the value of those assets during the pendency of
this action;
NOW, THEREFORE, IT IS ORDERED, ADJUDGED AND DECREED
THAT:
1.

The United States Marshals Service (“USMS”) will

conduct an interlocutory sale of the Proposed Forfeited Absolute
Assets.

In furtherance of the interlocutory sale of the Proposed

Forfeited Absolute Assets, those assets may be seized by the USMS
pending their interlocutory sale.
2.

The Absolute Poker Settlement Group will cooperate

with all reasonable requests of the USMS and others designated by
the USMS in connection with the interlocutory sale of the
Proposed Forfeited Absolute Assets.

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3.

The net proceeds realized from the sale of the

Proposed Forfeited Absolute Assets, and any and all income or
interest accrued thereon, shall be the substitute res for the
Proposed Forfeited Absolute Assets.

For avoidance of doubt, the

net proceeds shall not include any costs incurred by the
liquidation of the Proposed Forfeited Absolute Assets, including
any costs incurred by the USMS.
4.

In any forfeiture proceedings, the net proceeds

from the sale of the Proposed Forfeited Absolute Assets shall be
treated in all respects as though they are the Proposed Forfeited
Absolute Assets.
5.

This Court shall retain jurisdiction in this

matter to take additional action and enter further orders as
necessary to implement and enforce this order authorizing the
sale of the Proposed Forfeited Absolute Assets.

Dated:

New York, New York
____________, 2012
SO ORDERED:
______________________________
THE HONORABLE LEONARD B. SAND
UNITED STATES DISTRICT JUDGE

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