Unites States v. Pokerstars, et al

Filing 305

STIPULATION AND ORDER OF SETTLEMENT IN REGARD TO THE COMMONWEALTH OF KENTUCKY, EX REL., J. MICHAEL BROWN, SECRETARY JUSTICE AND PUBLIC SAFETY CABINET: The Commonwealth hereby fully and finally dismisses its claim in this action to the Full Tilt Domain Substitute Assets. Upon the entry of this Stipulated Order of Settlement, the Full Tilt Domain Substitute Assets shall be forfeited to the United States for disposition according to law, pursuant to Title 18, United States Code, Section 981. In satisfaction's of the Commonwealth's claim to the Absolute Domains, the United States shall transfer $6 million to the Commonwealth (the "Settlement Funds"). The Commonwealth agrees that within 5 days of the entry of this Stipulated Order of Settlement, it shall dismiss its claims in the Kentucky Action to the Absolute Domains. The Government shall transfer the Settlement Funds to the Commonwealth within 10 days of the Commonwealth's dismissal in the Kentucky Action of its claims regarding the Absolute Domains. Each party shall bear its own costs and attorneys' fees. (Signed by Judge Kimba M. Wood on 6/17/2013) (ft)

USDSSDNY
DOCUMENT
ELECTRONICALLY FILED II!

I

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

DOC#: ______~__+-_
-x

DATE

FILED: (,

I

UNITED STATES OF AMERICA,
Plaintiff,

STIPULATION AND ORDER
OF SETTLEMENT IN REGARD
TO THE COMMONWEALTH OF
KENTUCKY, EX REL., J.
MICHAEL BROWN, SECRETARY
JUSTICE AND PUBLIC
SAFETY CABINET

- v. POKERSTARS, et al.,
Defendants;
ALL RIGHT, TITLE AND INTEREST IN
THE ASSETS OF POKERSTARS , et al.,

11 Civ. 2564

(KMW)

Defendants-in-rem.

- - - - - -

x

WHEREAS, on or about April 14, 2011, a verified
complaint, 11 Civ. 2564 (LBS)

(the "Complaint") was filed under

seal in the United States District Court for the Southern
District of New York seeking the forfeiture of certain property
pursuant to Title 18, United States Code, Sections 1955(d),
981 (a) (1 ) (A), and 981 (a) (1) (C) ;
WHEREAS, included in such property were the following
domains:
1.

Pokerstars.com (the "PokerStars Domain");

2.

Fulltiltpoker.com;

3.

Absolutepoker.com (the "Absolute Poker Domain";

(the "Full Tilt Domain")

and
4.

U1timatebet.com (the "Ultimatebet Domain";
together with the Absolute Poker Domain, the
"Absolute Domains")

i

II

~'"" ~

(the PokerS tars Domain, Full Tilt Domain, and Absolute Domains!
together! the "Defendant Domains

ll
)

•

WHEREAS, beginning on May 17, 2011, and for thirty
consecutive days thereafter! pursuant to Rule 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
-rem! on www.forfeiture.gov, the government internet site, and
proof of publication was filed with the Clerk of the Court on
November 22, 2011;
WHEREAS! on or about September 21, 2011, a verified
amended complaint

this action was filed seeking the forfeiture

of! inter alia! the Defendant Domains;
WHEREAS! on or about September 30, 2011! the
Commonwealth of Kentucky! ex rei.! J. Michael Brown, Secretary
Justice and Public Safety Cabinet (the "Commonwealth

ll

or

"Claimant") filed a verified claim asserting an ownership
interest in the Defendant Domains;
WHEREAS, the Commonwealth's claim was premised on an
on-going

rem action relating to the Defendant Domains in

Kentucky state court (the "Kentucky Action

ll

)

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WHEREAS! the Claimant initiated the Kentucky Action
against,

inter alia, the Defendant Domains, in 2008, with the

Circuit Court of Franklin County, Kentucky exercising

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jurisdiction over the Kentucky Action relating to the Defendant
Domains;
WHEREAS, on or about July 31, 2012, Stipulated Orders
of Settlement were entered by the Court relating to the group of
entities doing business as PokerStars (collectively "PokerStars")
and the group of entities doing business as Full Tilt Poker
(collectively,

"Full Tilt"; the two settlements respectively, the

"PokerStars Settlement" and the "Full Tilt Settlement");
WHEREAS, pursuant to the PokerS tars Settlement and the
Full Tilt Settlement, inter alia, the Government's in rem action
against the PokerS tars Domain was dismissed, and the Full Tilt
Domain was forfeited to the Government and subsequently conveyed
to PokerStarsi
WHEREAS, by virtue of the United States's dismissal of
its action against the PokerS tars Domain, the Commonwealth's
claim to the PokerS tars Domain is no longer pending in this
action, without prejudice to any claims that may be available to
the Commonwealth in the courts of the Commonwealth or other
tribunals against the PokerS tars Domain or related parties;
WHEREAS, the Commonwealth did not oppose the forfeiture
of the Full Tilt Domain in exchange for the Government agreeing
to maintain approximately $36 million in funds received pursuant
to the PokerStars Settlement as substitute res for the
Commonwealth's claim to the Full Tilt Domain (the "Full Tilt

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Domain Substitute Assets");
WHEREAS, on or about September 10, 2012, a verified
second amended complaint (the "Amended Complaint") in this action
was filed seeking the forfeiture of, inter alia, the Absolute
Domains and the Full Tilt Domain Substitute Assets;
WHEREAS, the Claimant continues to pursue its case in
the Kentucky Action against the Defendant Domains;
WHEREAS, the Government and the Claimant 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, Jason H.
Cowley, and Christine I. Magdo, of counsel, and the Claimant, by
its counsel, D. Eric Lycan, Esq., that:
1.

The Commonwealth hereby fully and finally

dismisses its claim in this action to the Full Tilt Domain
Substitute Assets.
2.

Upon the entry of this Stipulated Order of

Settlement, the Full Tilt Domain Substitute Assets shall be
forfeited to the United States for disposition according to law,
pursuant to Title 18, United States Code, Section 981.
3.

In satisfaction's of the Commonwealth's claim to

the Absolute Domains, the United States shall transfer $6 million

4

to the Commonwealth (the "Settlement Funds").

The Commonwealth

agrees that within 5 days of the entry of this Stipulated Order
of Settlement, it shall dismiss its claims in the Kentucky Action
to the Absolute Domains.

The Government shall transfer the

Settlement Funds to the Commonwealth within 10 days of the
Commonwealth's dismissal in the Kentucky Action of

claims

regarding the Absolute Domains.
4.

the Settlement Funds is not in

Although payment

regard to the Full Tilt Domain, the united States may utilize, if
it chooses, the Full Tilt Domain Substitute Assets to fund such
payment.
5.

Upon receipt of the Settlement Funds, the

Commonwealth's claim

this action shall be deemed fully and

finally satisfied with respect to the Absolute Domains, and
dismissed with prejudice with respect to the Full Tilt Domain
Substitute Assets.
6.

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
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 Domains,
luding, without limitation, any claim that the United States

5

did not have probable cause to seize and/or forfeit the Defendant
Domains! that the Claimant is a prevailing party or that the
Claimant is entitled to attorneys! fees or any award of interest.
7.

The Claimant hereby agrees that

any claim or petition for restoration or remiss

shall not file
relative to

the Defendant Domains or the Full Tilt Domain Substitute Assets,
or any action or motion seeking to collaterally attack the
seizure, restraint! or

iture of the Defendant Domains or the

Full Tilt Domain Substitute Assets.

Furthermore, the parties

hereby waive all rights to appeal or to otherwise challenge or
contest the validity of this Stipulation and Order of Settlement.
8.

Each party

1 bear its own costs and attorneys'

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9.

The signature pages of this Stipulation and Order

may be executed

one or more counterparts, each of which will

be deemed an original but all of which together will constitute
one and the same

trument.

Signature pages may be by fax and

such signatures

1 be deemed as valid originals.

AGREED AND CONSENTED TO:
PREET BHARARA
United St

By:
DATE

Attorneys
One St. Andrew's Plaza
New York, New York 10007
[phone]/2193/2479/2297

[ADDITIONAL SIGNATURES ON FOLLOWING PAGE]

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The Commol1l'leal th of Kentucky, ex re.1. I J. r.Uchael Brown,
Secretary Justice and Public Safety Cabinet
By:

I

PLLC

rg Road, Suite 300
Lexington, KY 40504
(859)

255··7080

Attorney for Claimant

SO ORDERED:

(~ Yl\. .?:!!!if.

THE HONORABLE IGMBA W. WOOD
UNI'rED STATES DISTRICT JUDGr;

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(P-l~-l')..
DATE

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