Unites States v. Pokerstars, et al

Filing 288

STIPULATION AND ORDER OF SETTLEMENT IN REGARD TO RAFAEL FURST AND TELAMONIAN AJAX TRUST: The Claimants agree to forfeit to the United States all funds in the Trust Account (the "Trust Account Funds") for disposition according to law, pursuant to Title 18, United States Code, Section 981, without admitting any liability thereunder. The Claimants hereby withdraw their claims and agree that they shall not file any claim or petition for restoration or remission relative to the Trust Account Funds or the Additional Funds, or any action or motion seeking to collaterally attack the seizure, restraint, or forfeiture of the Trust Account Funds or the Additional Funds. This Stipulation and Order of Settlement fully and finally resolves this action as to the Defendant Property and the Claimants. Each party shall bear its own costs and attorneys' fees. (Signed by Judge Kimba M. Wood on 11/27/2012) (ft) Modified on 11/28/2012 (ft). Modified on 12/6/2012 (ft).

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

USDSSDNY
DOCUMENT
ELECTRONICALLY FILED
DOC#:
DATE FILED: lL /02.?
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UNITED STATES OF AMERICA,
Plaintiff,

STIPULATION AND ORDER
OF SETTLEMENT IN REGARD
TO RAFAEL FURST AND
TELAMONIAN AJAX TRUST

- v. POKERSTARS, et al.,

11 Civ. 2564 ~ (I{MW)

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

WHEREAS, on or about April 14, 2011, a verified complaint,
11 Civ. 2564 (LBS) was filed under seal in the United States District
Court for the Southern District of New York seeking the forfeiture
of various assets pursuant to Title 18, United States Code, Sections
1955(d), 981(a) (1) (A), and 981(a} (I) (C);
WHEREAS, on or about September 21, 2011, a verified amended
complaint in this action (the "Amended Complaintff) was filed seeking
the forfeiture of, inter alia, all right, title, and interest
account numbered CH87 0875 5057 0684 0010 0 held at Pictet & Co
Bankers, Switzerland, in the name of Telamonian Ajax Trust (the
"Trust Account"), an account controlled by, and for the benefit of,
Rafael Furst ("Furst

ff
),

"Defendant propertyff);

and all funds traceable thereto (the

WHEREAS, the Amended Complaint also sought a civil money
laundering penalty judgment of $11,706,323.96 against Furst, with
that amount representing the sum of alleged criminal proceeds
transferred to Furst from defendant entity Full Tilt Poker;
WHEREAS, Furst contends that Full Tilt Poker was a
legitimate business providing services to its customers within the
bounds of the law;
WHEREAS, on or about October 18, 2011, the United States
provided notice of the filing of the Amended Complaint to Furst;
WHEREAS, on or about October 31, 2011, Furst waived service
of the Amended Complaint and summons in this matter, and such waiver
was docketed on November 11, 2011;
WHEREAS, on or about November 28, 2011, Furst filed a
verified claim for the Defendant Property, asserting an ownership
in said property;
WHEREAS, on or about November 28, 2011, Telamonian Ajax
Trust (the "Trust") filed a verified claim for the Defendant
Property, asserting an ownership in said property (Furst and the
Trust, collectively, the "Claimants";,
WHEREAS, Furst contends that he was unaware of any wrongful
activity at Full Tilt or that the company had become unable to satisfy
its player account liabilities;

2

WHEREAS, Claimants, admitting no wrongdoing in connection
herewith, have agreed to settle this matteri
WHEREAS, victims of offenses alleged in this action to have
been committed by Full Tilt Poker will have the opportunity to file
petitions with U.S. Department of Justice, Asset Forfeiture and Money
Laundering Section ("DOJ"), for remission of forfeiture, including
with respect to the funds forfeited by Claimants pursuant to the
Stipulated Order of Settlement, pursuant to Title 18, United States
Code, Section 981 and Title 28, Code of Federal Regulations, Part
9, to seek compensation for their losses:
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 counsell
and the Claimants, by their counsel, David Angeli, Esq'l that:
1.

The Claimants agree to forfeit to the United States

all funds in the Trust Account (the "Trust Account Funds l l )

for

disposition according to law l pursuant to Title 18, United States
Code, Section 981, without admitting any liability thereunder.

The

Claimants agree to take all necessary steps to facilitate the
immediate transfer of the Trust Account Funds to the U.S. Marshal
Service.

Furst agrees to the entry of a civil forfeiture judgment

in the amount of $150 000
1

("the Additional Funds
3

ll

)

and to the

forfeiture of such funds for disposition according to law, pursuant
to Title 18, united States Code, Section 981, without admitting any
liabili ty thereunder.

Furst and the U. S. Attorney' s Office for the

Southern District of New York (the "Office") shall implement a
payment schedule for the Additional Forfeited Funds.
2.

Furst further agrees not work for, or derive money

from, either directly or indirectly, through the operation of any
internet gambling business in the United States, including
businesses offering internet poker in the United States, until if
and when a change in applicable law takes place making the offering
of such gambling lawful in the United States and Furst, or whatever
entity with which he is affiliated, obtains appropriate
authorization from all relevant governmental regulatory
authorities.
3.

The Claimants are 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
("FBr') 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 the Trust Account
Funds) or the Additional Funds, including, without limitation, any
claim that the United States did not have probable cause to seize
4

and/or forfeit the Defendant Property or the Additional Funds, that
the Claimants are prevailing parties or that the Claimants are
entitled to attorneys' fees or any award of interest.
4.

The Claimants represent that they are the sole owners

of the Defendant Property and the Addi tional Funds, and agree 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 or the Additional Funds.
5.

The Claimants hereby withdraw their claims and agree

that they shall not file any claim or petition for restoration or
remission relative to the Trust Account Funds or the Additional
Funds, or any action or motion seeking to collaterally attack the
seizure, restraint, or forfeiture of the Trust Account Funds or the
Additional 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.
6.

This Stipulation and Order of Settlement shall in no

way be deemed an admission of culpability, liability, or guilt on
behalf of the Claimants.

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
5

and the Claimants.
7.

Upon the United States' receipt of the Trust Account

Funds, which the United States shall note through a filing on the
docket, the in rem forfeiture action against the Defendant Property
and the civil money laundering claims against Furst shall be
dismissed with prejudice.

The United States Attorney's Office for

the Southern District of New York agrees that it will not bring any
other civil claims against Claimants relating to or arising out of
the facts alleged in the Amended Complaint.

Accordingly, this

Stipulation and Order of Settlement fully and finally resolves this
action as to the Defendant Property and the Claimants.
8.

Each party shall bear its own costs and attorneys'

fees.

6

9.

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:
DATE

I

~aso

AS i
States Attorneys

One St. Andrew's Plaza

New York, New York 10007

[phone]/2193/2479

[ADDITIONAL SIGNATURES ON FOLLOWING PAGE]

7

DATE

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By:

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DATE

Trustee

By:

DATE

David Angeli

Angeli Law Group LLC

Suite 400

Portland, OR 97204

[phone]

Attorney for Claimants

SO ORDERED:

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HONORABLE :bl!8Hl1Hl!>
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UNITED STATES DISTRICT JUDGE

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DATE

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RAFAEL FURST

Rafael Furst

DATE

TELAMONIAN AJAX TRUST
By:
Orlando Medina
DATE
Trustee

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By:
David Angeli
Angeli Law Group LLC
Suite 400
Portland, OR 97204
[phone]
Attorney for Claimants

DA E

SO ORDERED:

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HONORABLE ~~§HAJ!iUj B I 81!;tfd) KIIIIJIlA
UNITED STATES DISTRICT JUDGE

8

M. WOOD

DATE

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