Unites States v. Pokerstars, et al

Filing 294

STIPULATION AND ORDER OF SETTLEMENT IN REGARD TO ULTRA SAFE PAY, LLC: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, Jeremy Frey, Esq., that: The Claimant, without admitting any liability, agrees that 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. Upon the entry of this Stipulation and Order of Settlement and the forfeiture of the Defendant Property, this action will be fully and finally concluded in regard to the Defendant Property. Each party will bear its own costs and attorneys' fees. And as set forth herein. SO ORDERED. (Signed by Judge Kimba M. Wood on 12/17/2012) (ama)

USDSSDNY
DOCUMENT
ELECTRONICALLY FILED

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

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x

UNITED STATES OF AMERICA,
Plaintiff,
STIPULATION AND ORDER OF
SETTLEMENT IN REGARD
TO ULTRA SAFE PAY, LLC

- v.-

POKERSTARS, et ai.,
11 Civ. 2564 (KMW)
Defendants;
ALL RIGHT, TITLE AND INTEREST
IN THE ASSETS OF POKERSTARS, et al.,
Defendants-in-rem.

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X

WHEREAS, on or about December 1,2010, pursuant to a seizure warrant issued
by the United States District Court for the Southern District of New York, the United States
seized all funds on deposit at Umpqua Bank, Roseburg, Oregon, in account number 972402309,
held in the name of Ultra Safe Pay, LLC (the "Defendant Property");
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, inter alia, the Defendant Property, pursuant to Title 18, United States
Code, Sections 1955(d), 981(a)(1)(A),and 981 (a)(l)(C);
WHEREAS, on or about May 12,2011, the United States provided notice of the
filing of the Complaint to Ultra Safe Pay, Inc. (the "Claimant");
WHEREAS, beginning on May 17,2011, and for thirty consecutive days
thereafter, pursuant to Rille 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 defendants-in-rem, on ww\\.forfciture,goY. the government
internet site, and proof of publication was filed with the Clerk of the Court on November 22,
2011 ;
WHEREAS, on or about June 21, 2011, the Claimant filed a verified claim
regarding the Defendant Property asserting a right, title and interest in said property;
WHEREAS, on or about September 21, 2011, a verified amended complaint in
this action was filed seeking the forfeiture of, inter alia, the Defendant Property;
WHEREAS, on or about November 30, 2011, Claimant filed an Answer;
WHEREAS, on or about September 11, 2012. a verified second amended
complaint in this action was filed seeking the forfeiture of, inter alia, the Defendant Property;
WHEREAS, the Claimant, admitting no wrongdoing in connection herewith, and
the United States have 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, Jeremy Frey, Esq., that:
1.

The Claimant, without admitting any liability, agrees that 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.
2

Without admitting any wrongdoing or liability, the Claimant and Manuel

Sanchez ("Sanchez"), an authorized representative of Claimant, each further agrees not to
provide, either directly or indirectly, payment processing services for internet gambling in the
United States, including internet poker, until if and when a change in applicable law takes place

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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.
3.

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, that the Claimant is a prevailing party or that the Claimant is entitled to attorneys' fees
or any award of interest.
4.

The Claimant represents that as the account holder for the account from

which the Defendant Property was seized, it has a legal ownership interest in the Defendant
Property, 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 thirdparty claims by persons or entities who have not presently filed a claim to the Defendant
Property in this action in connection ~ith or arising out of the United States' seizure, restraint,
and/or constructive possession of the Defendant Property.
5.

The Claimant hereby withdraws its claim to the Defendant Property,

withdraws all pending motions in this action, 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. 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 Sanchez, the Claimant, or the Claimant's
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.
7.

Upon the entry ofthis Stipulation and Order of Settlement and the forfeiture

of the Defendant Property, this action will be fully and finally concluded in regard to the Defendant
Property. Each party will bear its own costs and attorneys' fees.

&

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 or pdf 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:_-'---t-:;"':;--b.L-l.,..L-~f------­
Sharon
Mic el
Jason'I:I. owley
Assistall'tUnited States Attorneys
One St. Andrew's Plaza
New York, New York 10007
[phone]/2193/2479

DATE

[Additional Signatures on Next Page]

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Ultra Safe Pay, LLC

BY:1t~JwJv;

DATE!

M uel Sane ez
Authorized Representative of

Ultra Safe Pay, LLC

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~ :i~v,

By~~(

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'
Jeremy D. Frey
i
Pepper Hamilton LLP
3000 Two Logan Sqtiate
Eighteenth and Arch Streets
Philadelphia, PA 19103-2799
[phone]

Attorney for Claimant

DAlE

SO ORDERED:
I;;" - ,

HONORABLE KIMBA M. WOOD
UNITED STATES DISTRlCT JUDGE

DATE

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