PokerStars CEO Forfeits $50 Million to US Government

pokerstars-logoPokerStars CEO Mark Scheinberg has agreed to pay $50 million in order to settle the US Department of Justice’s forfeiture complaint against the company.

The fine stems from civil penalties imposed in response to the allegations that PokerStars lied to US banks about the nature of its business in order to operate online poker in the country.

This deal is separate from theĀ 2012 settlement agreement PokerStars made with the government last year that led to the purchase of Full Tilt Poker’s assets.

The funds “shall be forfeited as a full and final settlement in lieu of the PokerStars distributions,” according to the consent order agreed upon this week, and it further states that Schneiberg admits no “wrongdoing, culpability, liability or guilt.”

In its civil complaint, the government sought the collective assets of PokerStars and related companies, including Rational Entertainment Enterprises Ltd., Oldford Group Ltd., PYR Software Ltd., Stelekram Ltd., and Sphene International Ltd.

In the Black Friday indictment, the Justice Department had alleged that PokerStars, Full Tilt Poker and Absolute Poker operated an illegal gambling businesses, violating the Unlawful Gambling Enforcement Act of 2006, and committed bank fraud and money laundering.

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