Unites States v. Pokerstars, et al

Filing 301

STIPULATION AND ORDER OF SETTLEMENT IN REGARD TO CHRISTOPHER FERGUSON: Ferguson agrees to forfeit to the United States all funds in the Ferguson Account (the "Ferguson Account Funds") for disposition according to law, pursuant to Title 18, United States Code, Section 981, without admitting any liability thereunder. Ferguson agrees to take all necessary steps to facilitate the immediate transfer of the Ferguson Account Funds to the U.S. Marshal Service. Ferguson further agrees to forfeit the additional amount of $2,350,000 ("the Additional Funds") for disposition according to law, pursuant to Title 18, United States Code, Section 981, without admitting any liability thereunder. Ferguson shall make payment of the Additional Funds within 30 days of the entry of this Stipulated Order of Settlement. Ferguson hereby withdraw his claim and agrees that he shall not file any claim or petition for restoration or remission relative to the Ferguson Account Funds, the Additional Funds, or the Full Tilt Funds; or take any action or make any motion seeking to collaterally attack the seizure, restraint, or forfeiture of the Ferguson Account Funds, the Additional Funds, or his interest in the Full Tilt 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. This Stipulation and Order of Settlement fully and finally resolves this action as to the Ferguson Account Funds and Ferguson. (Signed by Judge Kimba M. Wood on 2/21/2013) (ft) Modified on 2/22/2013 (ft). Modified on 2/22/2013 (ft).

USDSSDNY

DOCUMENT

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK
x

UNITED STATES OF AMERICA,
STIPULATION AND ORDER
OF SETTLEMENT IN REGARD
TO CHRISTOPHER FERGUSON

Plaintiff,
- v. -

POKERSTARS, et al.,
11 Civ. 2564

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(~)

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)

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981 (a) (I) (A)

I

and 981 (a) (I) (C) i

WHEREAS, on or about September 21, 2011, a verified amended
complaint in this action was filed seeking the forfeiture of, inter
alia, all right, title, and interest in the funds held in Account
numbered 40039049628 held at Citibank,

N.A"

in the name of

Christopher Ferguson (the "Ferguson Account"), and all funds
traceable thereto;
WHEREAS, on or about September 10, 2012, a verified second
amended complaint (the "Complaint") was filed seeking the forfeiture

of funds held in the Ferguson Account, and all funds traceable thereto,
and also sought a civil money laundering penalty judgment of $42
million against Christopher Ferguson ("Ferguson"), with that amount
representing the sum of alleged criminal proceeds transferred to
Ferguson from defendant entity Full Tilt Poker;
WHEREAS, Ferguson 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 Complaint to Ferguson;
WHEREAS, on or about October 31, 2011, Ferguson waived
service of the Amended Complaint and summons in this matter I and such
waiver was docketed on November 11, 2011;
WHEREAS, on or about November 28, 2011, Ferguson filed a
verified claim for the Ferguson Account Funds, asserting an ownership
in said property;
WHEREAS, Ferguson contends that he was unaware of any

wrongful acti vi ty at Full Tilt or that the company had become unable
to satisfy its player account liabilities;
WHEREAS, Ferguson, admitting no wrongdoing in connection

herewith, has agreed to settle this matter;

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WHEREAS, after April 13, 2011, Ferguson represents that
he forgave approximately $14 million in dividends owed to him by Full
Til t, and Ferguson represents this was done wi th his expectation
these funds would be used pay players for monies held at Full
WHEREAS, victims of offenses alleged in this action to have
been committed by Full Tilt Poker will have the opportunity to

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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 Ferguson 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; and
WHEREAS, the DOJ is in the process of engaging a claims
administrator to

litate this remission process;

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 Ferguson, by his counsel, Jonathan Harris, Esq., that:
1.

Ferguson agrees to forfeit to the United States all

funds in the Ferguson Account (the "Ferguson Account Funds") for
disposition according to law, pursuant to Title 18, United States

3

Code, Section 981, without admitting any liability thereunder.
Ferguson agrees to take all necessary steps to facilitate the
immediate transfer of the Ferguson Account Funds to the U. S. Marshal
Service.

Ferguson further agrees to forfeit the additional amount

of $2,350, 000 ("the Additional Funds") for disposition according to
law, pursuant to Title 18, United States Code, Section 981, without
admitting any liability thereunder.

Ferguson shall make payment of

the Additional Funds within 30 days of the entry of this Stipulated
Order of Settlement.
2.

Ferguson agrees to forfeit to the Government any

remaining interest in, or claim to, dividends purportedly owed to
him by Full Tilt Poker (the "Full Tilt Poker Funds") .
3.

Ferguson further agrees not to work for, or derive

money from, either directly or indirectly, any business offering
unlawful internet gambling in the United States.

While Ferguson

maintains that poker does not constitute gambling, Ferguson
specifically agrees not to work for, or derive money from, either
directly or indirectly, any business offering internet poker in the
United States without such business having first obtained the
appropriate authorization, as necessary, from all relevant
governmental regulatory authorities in United States.
4.

Ferguson is hereby barred from asserting any claim

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C.f

against the United States or any of its agents and employees
(including, without limitation, the Federal Bureau of Investigation
("FBIU) and the United States Attorney's Office for the Southern
District of New York ("USAO-SDNylI)) in connection with or arising
out of the United States' seizure, restraint, and/or constructive
possession of the Ferguson Account Funds, the Additional Funds, or
the Full Tilt Funds, including, without limitation, any claim that
the United States did not have probable cause to seize and/or forfeit
the Ferguson Account Funds, the Additional Funds, or the Full Tilt
Funds; that Ferguson was a prevailing party or that Ferguson is
entitled to attorneys' fees or any award of interest.
5.

Ferguson represents that he is the sole owner of the

Ferguson Account Funds, the Additional Funds, and his interest in
the Full Tilt 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 Ferguson Account
Funds, the Additional Funds, or his interest in the Full Tilt Funds.
6.

Ferguson hereby withdraw his claim and agrees that

he shall not file any claim or petition for restoration or remission
relati ve to the Ferguson Account Funds, the Additional Funds, or the

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C.t.

Full Tilt Funds; or take any action or make any motion seeking to
collaterally attack the seizure, restraint, or forfeiture of the
Ferguson Account Funds, the Addi tional Funds, or his interest in the
Full Tilt 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.
7.

This Stipulation and Order of Settlement shall in no

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

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 Ferguson.
8.

Upon the United States' receipt of the Ferguson

Account Funds and the Addi tional Funds, which the United States shall
note through a filing on the docket, the in rem forfeiture action
against the Ferguson Account Funds and the civil money laundering
claims against Ferguson 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 Ferguson
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 Ferguson Account

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Funds and Ferguson.

9.

Each party shall bear its own costs and attorneys'

10.

The signature pages of this Stipulation and Order may

fees.

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 for Plaintiff
!

By:

DATE
Attorneys
One St. Andrew's Plaza
New York, New York 10007
[phone]/2193/2479

[ADDITIONAL SIGNATURES ON FOLLOWING PAGE]
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c .f.

CHRISTOPHER FERGUSON

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12.013

DATE

Christopher Ferguson

1-1.--­

February 19, 2013

By:

Jonathan Harris
Julie Withers
Harris, O'Brien, St. Laurent
& Houghteling LLP
Attorneys for Ferguson

DATE

SO ORDERED:

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UurrrI.

2,; 21- 13

HONORABLE KIMBA M. WOOD

DATE

UNITED STATES DISTRICT JUDGE

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