Federal prosecutors label Full Tilt Poker a 'Ponzi Scheme'

Jul 2, 2012 7:00 PM

Federal prosecutors have labeled Full Tilt Poker as nothing but a Ponzi scheme as they arrested its CEO Ray Bitar.

Bitar, a south California resident, who remained in Ireland when he was indicted by federal investigators in New York City in April, 2011, reportedly voluntarily surrendered to authorities over the weekend.

According to a story on Forbes, federal officials filed a superseding indictment against Bitar, charging he misled Full Tilt’s customers about the reason the online poker site operator could not repay U.S. players their money after the federal government effectively shut down the website. At the time, Bitar indicated there were both legal and jurisdictional issues that prevented the repayments.

In fact, said prosecutors, Bitar knew the company depended on fresh money deposits in order to meet a backlog of withdrawal requests from players. This, they said, “was nothing more than a Ponzi scheme.”