According to a report in the Financial Times of London, US federal prosecutors have convened a grand jury to investigate charges of money laundering and illegal gambling against Full Tilt Poker, the second-biggest online poker site. If the grand jury issues indictments, some of the best players on the poker tournament circuit could face criminal charges. The report also states that agents of the Federal Bureau of Investigation (FBI) have interviewed players who have had disputes with the company, Tiltware LLC.
Eric Jackson, an attorney based in Los Angeles who lists Tiltware as one of his clients, said that the company had yet to be informed of any aspect of the grand jury investigation. Mr. Jackson also represents several pro poker players that have sponsorship agreements with the site, including two-time World Series of Poker bracelet winner Howard "The Professor" Lederer, seven-time WSOP bracelet winner Phil Ivey and 2000 WSOP Main Event Champion Chris "Jesus" Ferguson.
Federal prosecutors have yet to release any statements, as they have a policy of not commenting to the press about the status of an ongoing investigation. The US Attorney’s office in Manhattan prompted the investigation into Full Tilt’s potential involvement in money laundering violations. Last year, federal prosecutors seized almost US$50 million from both Full Tilt and PokerStars, the world’s biggest online poker site, alleging that the sites were involved in facilitating illegal gambling and money laundering operations.
The investigation is part of the continuing attempts of the US Justice Department to enforce laws that prohibit the transfer of gaming information through electronic communications. The Federal Wire Act of 1961 made it illegal to use telephone, telegraph or other wire services to pass on betting information. A recent ruling from the US Fifth Court of Appeals said that Wire Act only applies to sports betting and not to online poker. The case has not yet gone before the US Supreme Court.