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)

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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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