Unites States v. Pokerstars, et al

Filing 304

CONSENT ORDER OF FORFEITURE OF $58 MILLION IN UNITED STATES CURRENCY: Mark Scheinberg agrees to forfeit to the United States the sum of $50 million (the "Forfeited Funds"), as full and final resolution of any and all claims by the United States as set forth in paragraph 7. Said funds shall be forfeited as a full and final settlement in lieu of the PokerStars Distributions that the Government alleges are subject to forfeiture. The Forfeited Funds shall be transferred to the United States Marshals Service within seven (7) business days of the signing of this Consent Order of Forfeiture, and upon transfer shall be maintained by the Marshals Service pending further order of the Court. Mark Scheinberg represents that he is the sole owner of the Forfeited Funds. Mark Scheinberg agrees that he shall not file any claims or petitions for remission relative to the Forfeited Funds, nor shall he assist others in filing any such claims or petitions. This Consent Order of forfeiture shall in no way be deemed an admission of any wrongdoing, culpability, liability, or guilt on behalf of Mark Scheinberg or any of his respective agents or employees, past and present. This Consent Order of Forfeiture is separate from the PokerStars Settlement and the Forfeited Funds shall not be credited toward the PokerStars Settlement. This Order may be executed in counterparts, each of which, when taken together, shall be deemed the complete Consent Order of Forfeiture. (Signed by Judge Kimba M. Wood on 6/10/2013) (ft)

I

USDS SDNY

DOCUMENT
ELECTRONICALLY FILED
DOC #:
--------~~~----DATE FILED: (, III 113
J

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
-

UXITED STATES OF AMERICA,

CONSENT ORDER OF FORFEITURE
OF $58 MILLION IN
UNITED STATES CURRENCY

- v.-

o MILLION
CURRENCY,

UNI

1CC

S

. 2564

(KMw)

Defer:dar:t ir:-rem.
-

WHEREAS,

-

-

-

-

-

-

-

x

or: or about September 20,

amended complaint, 11 Civ. 2564 (KMW)

2011,

a verified first

(tte "Complaint") was filed in the

United States District Court for the Southern Dist::-ict of New York
the forfeiture of,

among other th

, all assets of PokerStars, tte

Oldford Group Ltd., Ratior:al Entertainment Enterprises Ltd., PYR Software
Ltd., Stelekram Ltd.,

and Sphene Ir:ternational Ltd.

(collectively the

"PokerStars Companies"; their assets collectively the "PokerStars
rty"), pursuant to Title 18, United States Code, Section

Defendant
1955 (d),

981 (a) (1) (A),

and 981 (a) (1) (C), and tte imposition of civil

ties, pursuant to Title 18, United States Code, Section 1956(b),
the PokerStars Companie ;
WHEREAS,

on or about July 31, 2012,

the Court entered a

Stipulated Order of Settlement between the United States and the
PokerStars Companies
PokerStars

(the "PokerStars Settlement"),

ies denied al

-J I
,_.J

- x

in which the

wrongdoing and pursuant to which the civil

1

I

I

penalty and forfeiture claims alleged in the Complaint against the
PokerStars Companies and the PokerStars Defendant Property, re
were ful

ively,

and finally resolved;
WHEREAS, at all relevant times Mark Scheinberg was and remains

a legal and/or beneficial shareholder of the PokerStars

ies and

received, directly and/or indirectly, distributions from the PokerS tars
Companies during the time frames al

in the Complaint (together with

Mark Scheinberg's legal and/or beneficial holdings in the PokerStars
Companies, the "PokerStars Distributions," which does not include money
that the PokerStars Companies paid to any person, other than Mark
Scheinberg, in his or her capaci

as a shareholder or otherwise);

WHEREAS, the United States al

s

(and Mark Scheinberg

disputes) that the PokerStars Distributions, in whole or in part, are or
may be subject to forfeiture pursuant to, inter alia, Title 18, United
States Code, Sections 981 (a) (1) (A),

981 (a) (1) (C)

and 1955 (dl;

WHEREAS, Mark Scheinberg wishes to fully and finally resolve
this matter;
IT IS HEREBY STIPULATED AND AGREED, by and between the
undersigned
1.

ies, as follows:
Mark Scheinberg agrees to forfeit to the United States the

sum of $50 million (the "Forfeited Funds"), as full and final resolution
of any and all claims by the United States as set forth in paragraph 7.
Said funds shall be forfeited as a full and final settlement in lieu of

2

the

Po~erStars

Distributions that the Government al

s are subject to

forfeiture.
The Forfeited Funds shall be transferred

0

tje United

States Marshals Service within seven (7) business days of the s

ing of

this Consent Order of Forfeiture, and upon transfer shall be maintained
by the Marshals Service
3.

ng further order of the Court.

Mark Scheinberg represents that he is the sole owner of

tje Forfeited Funds.
4.

Mark Scheinberg agrees that he shall not file any claims

or petitions for remission relative to the Forfeited Funds, nor sha 1 he
assist others in fil
5.

any such claims or petitions.

Pursuant to Rcles G(4) (a) (iv) (C)

Supplemental Rules for Certain Admira

and G(5) ta) (ii) of the

or Maritime Claims and Asset

Forfeiture Actions, the United States shall

ish for at least thirty

(30) consecutive days on the government internet site,
~~~------------~--

, notice of this Consent Order

f Forfeiture and notice

that any person, other than Mark Scheinberg, claiming an

interes~

in tje

Forfei ted Funds m'cst file a peti t on wi thin sixty (60) days from the first
day of publication of tje not ice on t.hi
6.
adj udication

Upon the
f any third

S

officirll govp.rnment i:1ternet site.

ration of the notice period and the
clalms to the Forfeited Funds, the United

States will promptly seek, and this Court will enter,

a Final Order of

Forfeiture witr1 respect to the Forfeited Funds pursuant to Title 18, United
States Code, Sections 981 and 1955, and the Forfei ted Fur:ds shall be deemed
3

forfei ted to the Uni ted States for disposi tion according to 1 a 1;-1 , i
Title 18, United States Code, Sections 981 and 1955.
7.
respec~

release

Doon

~he

n~ry

of the Final Order of Forfeiture with

to the Forfe ted Funds,
(i)

~he

United States shall ful

and finally

the PokerStars Dist ibutions and any property traceable to

or derived from the PokerStars Dis ributions; and (ii) Mark Scheinberg;
from any and all civ 1 claims of any kind or desc

personam or

the activities
alleged in

se), based on the al

o~herw

f

the PokerStars

Mark Scheinberg

against the United
witho~t

ions of the

(in rem,

in

laint and! or

es in providing online gaming as

aint.

~he

8.

on

s hereby barred from

asser~ing

any claim

ates or any of its agents and employees (including,

limitation, the Federal Bureau of Inves igation and the Uni_ed

States Attorney's Office for

~he

Southern District of New York)

connection with or arising out of the United States'

in

forfeiture of the

Forfeited Funds including, without limitation, any claim that the Un ted
States did not have probable cause

forfeit the Forfeited Funds, that

is a prevail ng

Mark Sche
,

to at

9.

fees or any award a

or

~hat

Mark Scheinberg is entitled

interest.

This Consent Order of l?orfeiture shall in no way be deemed

an admission of any wrongdo

, culpabili

of Mark Scheinberg or any of his respective
present.

4

, liabil

s or

, or gu 1 t on behalf
oyees, past and

10.

from the

This Consent Order of Forfeiture is

PokerStars Settlement and the Forfeited Funds shall not be credited toward
lhe PokerS lars Settlement.
11.

This Order may be executed in counterparts, each of which,

when taken together, shall be deemed the complete Consent Order of
Forfeiture.
PREET BHARARA
United States Attorney for the
Southern District of New York

Tu.ne S .~ 0 \ 3

By:
SHARON COHEN LEVIN
JASON H. COWLEY
MICHAEL D. LOCKARD
CHRISTINE I. MAGDO

Date

Attorneys

u -

By:
MARK SCHEINBERG

(Jl....~ -

Date

BY'~ff.0.~

MIGU
A. ESTRADA, ESQ.

AVI WEITZMAN, ESQ.

Gibson, Dunn & Crutcher, LLP

Attorneys for Mark Scheinberg

Date

SO ORDERED:

(~m.

()5llij

THE HONORABLE KIMBA M. WOOD
United States District Judge
Southern District of New York

Date

5

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