Full Tilt Poker hit back at the U.S. Justice Department’s claims that the site “was not a legitimate company, but a global ponzi scheme” yesterday.Here’s what the site’s lawyers told the Wall Street Journal:
“While the government has obviously taken issue with the underlying activities of FTP, under any reasonable interpretation, the world-wide operations of the online cardroom are not a so-called Ponzi scheme.”
“A Ponzi scheme requires an investment vehicle in order to receive a certain rate of high return,” another FTP lawyer explained. “None of those things happened here.”
Ifrah did acknowledge that the company had its issues, saying “maybe it was mismanaged.”
The DOJ is accusing the site of paying board members $444 million from 2007 to 2011 even though it lacked the funds to pay its players.
FTP currently owes players $160 million in unpaid winnings, according to the Wall Street Journal.
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