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  1. #1
    Zab
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    FTP’s “$60M Shortfall” Actually Much Larger

    Full Tilt Poker had credited $60 million to players for deposits that never left their bank accounts.1 In fact, the total amount of still uncollected funds is $128 million.2 This new sum represents a very signficant portion of Full Tilt’s total obligation to players.

    As we first explained in June, players who deposited by electronic funds transfer (also known as EFTs or “e-checks”) received the deposited funds instantly in their Full Tilt Poker accounts. Typically, these funds would be debited from the players’ bank accounts a few business days after their deposit.3 However, during the time period in question, many US players found that these funds were simply never taken from their bank accounts. Full Tilt had given them funds on their site for nothing.4

    This was not simply an accident, as many had suspected. Full Tilt Poker was actually accepting deposits and crediting player accounts without payment processors in place to collect the money. Full Tilt had effectively given players loans without telling them, under the assumption that they could collect the debt later. According to numerous sources inside both Full Tilt and PokerStars, FTP viewed this as an opportunity to gain US customers who were unable to deposit on Stars.5

    The shortfall was first mentioned publicly when the US Attorney of the Southern District of New York released a press release about Bradley Franzen’s plea bargain:

    According to his plea allocution and the Superseding Information, FRANZEN admitted that in early 2011 he had been asked to help Full Tilt Poker deal with a $60 million shortfall created by the company’s inability to find a payment processor to process transactions involving U.S. player accounts. The company was facing the shortfall because it continued to credit funds to player accounts despite being unable to actually debit (or “pull”) funds from customers.

    Franzen, a payment processing middleman, was indicted on April 15th for his role in processing payments and allegedly defrauding banks on behalf of PokerStars, Full Tilt Poker, and Absolute Poker. It is not clear at this time why Franzen’s allocution only mentioned a fraction of the total shortfall.

    The new figure was first mentioned publicly by lawyers representing Full Tilt in Todd Terry et al’s class action lawsuit representing US players against many of the poker site’s companies and owners, and we have confirmed it with numerous reliable sources. Though Subject: Poker has been so far unable to learn exactly how much money Full Tilt owes its players, we have learned from many sources that the total debt to US players is roughly $150 million.6 (It is unclear whether this number includes funds that were in transit on April 15th.) This, combined with the fact that US players represented between 40% and 50% of Full Tilt’s total business, suggests that the $128 million shortfall represents over one third of FTP’s total debt to players.

    It is extremely unlikely that Full Tilt Poker will be able to recover a significant portion of this money. Full Tilt’s lawyers also reported during the class action lawsuit that only $9 million of this $128 million is still recoverable by simply debiting players’ Full Tilt accounts.7 That money will likely be recovered.

    However, the remaining $119 million is very unlikely to be returned. Full Tilt has made an explicit agreement with the Department of Justice not to accept deposits from US players. Even if that hurdle were overcome, these debts range from over four months old to over a year old, and most of the players are unaware that they even owe money to the poker site. Full Tilt Poker had serious troubles with reversed transactions, emptied bank accounts, and customer complaints trying to collect these debts four months ago. These problems would doubtless be worse now.
    "And Shepherds we shall be. For thee, my Lord, for thee.
    Power hath descended forth from Thy hand. Our feet may swiftly carry out Thy commands.
    So we shall flow a river forth to Thee And teeming with souls shall it ever be.
    In Nomeni Patri Et Fili Spiritus Sancti."
    http://www.youtube.com/watch?v=7_AtUXdXA_s

  2. #2
    PokerOwned Demi-God
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    see thats just poor business sense dont take the money out of players bank but give it to them to gamble it away
    and wonder why the site is or was in trouble thought they were better than that

  3. #3
    PokerOwned Pro Flyby123's Avatar
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    Sounds like a cluster f u c k. It is still hard for me to think that we(US players) will ever get that money or play on the site ever again

  4. #4
    PokerOwned Demi-God bigphatmike's Avatar
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    Wow Zab finally realizing the straight facts scares the shit outta me. What is stopping this from happening again.

  5. #5
    Elite PokerOwned Member
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    now watch full-tilt is going to sue the players for the funds they never collected plus intrest

  6. #6
    Elite PokerOwned Member
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    or after they sell full-tilt try and cash the deposit's then

  7. #7
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    It is a practice that I have seen in other businesses, I know that it is happening as I type, in the For

    Profit Colleges and Universities, ie, Kaplan, ITT,Rassmussen, As the laws change involving the

    Student loan programs, these schools have had a serious problem, finding

    Private financial institutions to Loan students funds, The schools have created what they call

    "TEMP CREDIT", the student signs all the same paperwork, but the school themselves

    hold Loan, In hopes that Private Loan funding becomes available, If it does school files loan, it it cant

    they have to eat it. All those types of schools face the

    exact consequences of losing loans they cant collect If private lending is eliminated by upcoming

    legislation.

    Just a head up for any students of these schools here
    Last edited by sprocketdog; 08-30-2011 at 04:57 PM.

  8. #8
    Elite PokerOwned Member jcolee2's Avatar
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    one thing i can say about merge networks is they took down e-check depositing...thats what accounted for the bulk of that debt

  9. #9
    Elite PokerOwned Member jcolee2's Avatar
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    full tilt's debt

  10. #10
    PokerOwned God
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    I was reading about this a few month ago ...the revision from 60 mill to 128 mil is new news though. The echecks loophole was exploited by plenty of people from what I read on other sites. Player X would open temp bank accounts then after getting "credited/loaned" large sums of money from FT (not the bank) they would dump or transfer it off to Player Y.

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