Unites States v. Pokerstars, et al

Filing 306

STIPULATION AND ORDER OF SETTLEMENT WITH RESPECT TO ABSOLUTE POKER: 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 the Absolute Poker Group, by its counsel, Jerry D. Bernstein, Esq., of Blank Rome LLP, that: 1. The Absolute Poker Group agrees that all assets, including property of all kinds, real and personal, tangible and intangible, goodwill, right or non-physical resource that is presumed to represent an advantage in the marketplace, and anything having commercial or exchange value, of the following Absolute Poker-affiliated and controlled companies (collectively, the the Absolute Poker Group"), or any other transferee of assets f/b/o the Absolute Poker Group, its owners or designees shall be forfeited to the United States, for disposition according to law, pursuant to Title 18, United States Code, Section 981: As set forth herein. Blanca Games hereby withdraws its claim in this action for the assets of Blue Water Services Ltd., Trust Services Ltd., SGS Systems Inc. and Fiducia Exchange Ltd. The civil money laundering claims against the Named Absolute Poker Companies are hereby dismissed with prejudice, with the exception of the civil money laundering claims against Blue Water Services Ltd., Trust Services Ltd., SGS Systems Inc. and Fiducia Exchange Ltd., which remain pending. Each party shall bear its own costs and attorneys' fees. SO ORDERED. (Signed by Judge Kimba M. Wood on 7/15/2013) (ama)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

x

USDSSDNY
DOCUMENT
ELECTRONICALLY FILED
DOC#:
j
I
DATE FILED: 1 /,(; /13

UNITED STATES OF AMERICA,
STIPULATION AND ORDER OF
SETTLEMENT WITH RESPECT
TO ABSOLUTE POKER

Plaintiff,
- v.

-

11 Civ. 2564

POKERSTARS, et al.,

(KMW)

Defendants;

ALL RIGHT, TITLE AND INTEREST IN THE

ASSETS OF POKERSTARS, et al.,

Defendants-in rem.

- - WHEREAS, on or about
11 Civ. 2564

(LBS)

x

1 14, 2011, a verif

complaint,

(the "Complaint") was filed under seal in the

United States District Court for the Southern District of New York
seeking the forfeiture of, among other things, all assets of

alia, Absolute Poker, Ultimate Bet, SGS Systems Inc., Trust Services
Ltd., Fiduc

Exchange Ltd., Blue Water Services Ltd., Absolute

Entertainment, S. A. and Blanca Games, Inc. of Antigua (collectively,
the "Named Absolute Poker Companies") pursuant to

tIe 18, United

States Code, Sections 1955(d), 981(a) (1) (A), and 981(a) (1) (C)

(the

"Defendant Property"), and seeking civil money laundering penal
pursuant to

tIe 18, United States Code, Section 1956 against the

Named Absolute Poker Companies;

1

I

WHEREAS, on or about May 27, 2011, the United States
provided notice of the filing of the Complaint to the Named Absolute
Poker Companies by and through its counsel, Jerry D. Bernstein, Esq.
of Blank Rome, LLPj
WHEREAS, on or about June 28, 2011, the Named Absolute
Poker Companies waived service of the Complaint and Summons;
WHEREAS, on or about September 21, 2011, a verified amended
complaint in this action (the "Amended Complaint") was filed seeking
the forfeiture of the Defendant Property and seeking civil money
laundering penalties pursuant to Title 18, United States Code,
Section 1956 against the Named Absolute Poker Companies;
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-in-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 October 31, 2011, Blanca Games, Inc.
("Blanca Games") filed a verified claim for certain of the Defendant
Property;

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WHEREAS, Blanca Garnes withdraws its claim for the assets
of Blue Water Services Ltd., Trust Services Ltd., SGS Systems Inc.
and Fiducia Exchange Ltd.;
WHEREAS, the United States contends that the Defendant
Property constitutes (1) proceeds of bank fraud, wire fraud, and the
operation of illegal gambling businesses, and (2) property involved
in money laundering and the operation of illegal gambling businesses,
and Blanca Garnes alleges meritorious defenses to these allegations;
WHEREAS, the Absolute Poker Group (defined more fully
below and including Blanca Garnes, but not including Blue Water
Services Ltd., Trust Services Ltd., SGS Systems Inc. or Fiducia
Exchange Ltd.) admitting no wrongdoing in connection herewith, has
agreed to the forfeiture of all of its right, title, and interest
in the Forfeited Property (defined below) to the United States;
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, and Jason H. Cowley, of counsel,
and the Absolute Poker Group, by its counsel, Jerry D. Bernstein,
Esq., of Blank Rome LLP, that:
1.

The Absolute Poker Group agrees that all assets,

including property of all kinds, real and personal, tangible and
3

intangible, goodwill, right or non-physical resource that is
presumed to represent an advantage in the marketplace, and anything
having commercial or exchange value, of the following Absolute
Poker-affiliated and controlled companies

(collectively, the

~the

Absolute Poker Group"), or any other transferee of assets flblo the
Absolute Poker Group, its owners or designees shall be forfeited to
the United states, for disposition according to law, pursuant to
Title 18, United States Code, Section 981:
1.

Absolute Poker

2•

Ultimate Bet

3.

Absolute Entertainment, S.A.

4•

Blanca Games, Inc.

5.

Hoop & Javelin Holdings Limited

6.

Lacrosse Holdings Limited

7.

Hoop Payment Solution Services Ltd.

8.

Morning Bliss Overseas Ltd.

(collectively, the -Forfeited Property").

The Forfeited Property

shall not include any rights, title or interest in any ownership
interests

(legal or beneficial) in any of the companies in the

Absolute Poker Group or in any other entity in which any of the
companies in the Absolute Poker Group has any ownership interest,
and any rights arising by virtue of such ownership interest,
including, without limitation, any rights among any of the companies
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in the Absolute Poker Group, their respective legal or beneficial
owners or their officers, directors and managers.

The Absolute

Poker Group further expressly agrees and understands that nothing
in this Stipula tion and Order of Settlement is intended to transfer I
assign or convey the liabilities of any persons or entities,
including the companies in the Absolute Poker Group.
2.

The Absolute Poker Group represents that it is the

sole owner of the Forfeited Property.

3.

Blanca Games hereby withdraws its claim in this

action for the assets of Blue Water Services Ltd., Trust Services
Ltd., SGS Systems Inc. and Fiducia Exchange Ltd.
4.

The Absolute Poker Group agrees to cooperate fully

with the United States Attorney's Office for the Southern District
of New York ("USAO-SDNY") and United States Marshals Service (\\USMS")
personnel in the identification, seizure and liquidation of assets
by:
A. Providing a list of assets, to include:
i.

Full property description

ii.

Location of property

iii.

Information on loans/liens against
Property

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iv.

Contact information of current
property custodian, or other
responsible party

v.

Acquisition value, book value, fair
market value and current purchase
offers, including identities and
contact information of offering parties

B. Responding to information requests promptly.
C. Authorizing and facilitating direct contact, as
needed, by USAO-SDNY and the USMS personnel with
employees, contractors and other asset
custodians.
5.

The Absolute Poker Group 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"), the USMS, and the USAO-SDNY) in connection
with or arising out of the United States' seizure, restraint, and/or
constructive possession of the Defendant Property, including,
without limitation, any claim that the United States did not have
probable cause to seize and/or forfeit the Defendant Property, that
the Absolute Poker Group (including claimant Blanca Games) is a
prevailing party or is entitled to attorneys' fees or any award of
interest.
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6.

The Absolute Poker Group represents that it is the

sole owner of the Forfeited Property, 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 Defendant Property.
7.

The Absolute Poker Group (including claimant Blanca

Games) hereby withdraws its claims and/or petitions for remission
and agrees that it shall not file any claim or petitions for remission
relative to the Forfeited Property, or any action or motion seeking
to collaterally attack the seizure, restraint, or forfeiture of the
Forfeited Property.

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.

This Stipulation and Order of Settlement shall in no

way be deemed an admission of culpability, liability, or guilt on
behalf of the Absolute Poker Group.

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 the Absolute Poker Group.

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9.

The civil money laundering claims against the Named

Absolute Poker Companies are hereby dismissed with prejudice, with
the exception of the civil money laundering claims against Blue Water
Services Ltd., Trust Services Ltd., SGS Systems Inc. and Fiducia
Exchange Ltd., which remain pending.
10.

Each party shall bear its own costs and attorneys'

11.

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

By:

Attorneys

One st. Andrew's Plaza

New York, New York 10007

(212)

637-1060/2193/2479

[ADDITIONAL SIGNATURES ON NEXT PAGE]
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ABSOLUTE POKER/THE ABSOLUTE POKER GROUP
(including Absolute Poker, Ultimate Bet, Absblute Entertainment,
S.A., Blanca Games, Inc., Hoop & Javelin Holdings Limited, Lacrosse
Holdings Limited, Hoop Payment Solution Services Ltd., and Morning
Bliss Overseas Ltd.)

By:

~ ~

a 'IV­

DAti (
~rr~. Bern~tein, Esq.
Blank Rome, LLP
405 Lexington Avenue
New York, New York 10174-0208
[phone]
Counsel for Absolute Poker, Ultimate Bet, Absolute
Entertainment, S.A., Blanca Games, Inc., Hoop & Javelin
Holdings Limited, Lacrosse Holdings Limited, Hoop Payment
Solution Services Ltd., and Morning Bliss Overseas Ltd.

SO ORDERED:

~~~.~

.:J~_

Dt:TF:r

THE HONORABLE KIMBA W. WOOD
UNITED STATES DISTRICT JUDGE

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