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
-Z0 I
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