Lederer Settles His Civil Case With SDNY

pile of files

It has just been revealed that yesterday Howard Lederer and the Southern District New York have agreed on a settlement of his civil case.

Howard Lederer was on the former board of directors at Full Tilt Poker along and was named along with three other directors in an amended civil complaint back in the September of 2011. The government wanted Lederer to forfeit around $42.5 million which was said to have been paid to Lederer from Full Tilt Poker.

This was due to the former Full Tilt site being accused of literally being a ‘ponzi’ scheme on a huge scale, with those four people defrauding its customer base out of an amount which totals around $330 million.

September This Year!

Just a few months ago in September, there was a second civil complaint aimed at the involved board members put together, which had even more forfeiture charges included in it. These new charges included assets that had been purchased by proceeds that were deemed to have been illegally earned.

With regards to Lederer and the second amended complaint, it stated a full and detailed account of every expenditure made by him between the last few months of 2006 right up until September of 2011. These records also showed that Lederer had used funds deemed illegal to make payments on mortgages, taxes, deposits into retirement funds and a selection of vehicles.

These amounted to a total of $42.5 million that the government were seeking Lederer to forfeit, of which Lederer initially denied most of the charges and instead filed what is known as a motion to dismiss back in November this year.

Settled On the 18th of December 2012

However, yesterday saw Lederer finally agree to settle with the Southern District New York. As part of the agreement, Lederer still contends that FTP was a fully law abiding company that had been providing a fully legitimate service to each and all of its customers. It also states that Lederer still claims to have been unaware that after April the 15th 2011, that FTP was not able to cover all of its player’s accounts. It also claims that he will still not admit to any wrongdoing.

The settlement means that Lederer has agreed to forfeit a whole host of property and possessions, which include a Shelby Cobra, the total amount of funds found within accounts he has with Lloyds TSB and with Isle Of Mann and any funds that have been traced to have left those accounts during the period mentioned.

He will also forfeit all accounts that are in his name at LPL Financial, with one such account amounting to $401k. He will lose a property he owns in Las Vegas, whilst also having forfeit the money earned from the sale of two of his former properties again in Las Vegas.

He has also been ordered to pay a penalty for money laundering that totals $1.25 million as well as any liquidated funds. He will have a total of 36 months to make those payments.

With Lederer’s civil case now settled, he now joins Rafe Furst as the only two of the four FTP board members to have reached this stage. Chris Ferguson is still currently ongoing with his negotiations over a settlement, whilst Ray Bitar’s case is still at the pending stage due to him also facing criminal charges.

 

0 comments