Isai Scheinberg was fined $30,000 for charges of an indictment filed in 2011 where he allegedly conducted operations in violation of UIGEA
After nearly ten years, the portion of the case involving PokerStars founder Isai Scheinberg has been settled and Scheinberg has been fined $30,000 for his role in running an illegal internet gaming business in the US. Scheinberg was one of 11 individuals and four companies indicted on charges of illegal gambling, bank fraud and money laundering.
Scheinberg, who pleaded guilty to one count of operating an illegal gambling business in March, could have faced a prison sentence of between 12 and 18 months but avoided jail time for the offense. Judge Lewis Kaplan of the US District Court for the Southern District of New York, ultimately opted not to impose a custodial sentence.
One of the major factors for the judge’s decision was the deal the DOJ reached with PokerStars in 2012 under which the company assumed debts of $304m owed by Full Tilt Poker, another company indicted on Black Friday and which PokerStars subsequently absorbed.
Full Tilt Poker players were reunited with the money in their online accounts, just as Stars players had been from the start. This deal did not result in the charges against Scheinberg being dismissed, though he was banned from serving in a managerial or directorial role for the operator as part of the settlement.
Scheinberg said: “I am pleased that Judge Kaplan has determined today not to impose a prison sentence in my case." and added: "PokerStars played an important role in creating today’s global regulated online poker industry by running an honest and transparent business that always treated its players fairly. I am particularly proud that in 2011, when PokerStars exited the United States, all of its American players were made whole immediately.”
SiGMA Group Americas Digital Summit is running from the 22nd to 24th September, bringing well-known faces from the Latin American gaming and tech sector to a series of in-depth debate panels, with content offered in Spanish, Portuguese, and English.
The 7th edition of SiGMA Europe will move its November event to February 16th to 18th 2021.