PokerStars Chairman Forfeits $50m to US in Resolution of Black Friday Case

Mark Scheinberg, Chairman of the Board of PokerStars, has agreed to forfeit $50 million as settlement of claims by the US connected to the first amended complaint relating to Black Friday.

The Department of Justice sought the forfeiture of assets of PokerStars-related companies including Rational Entertainment Enterprises, pursuant to provisions that allow the seizure of property used in an illegal gambling business, and property derived from proceeds of bank and wire fraud and money laundering.

The settlement has no bearing on the deal PokerStars struck with the DOJ last year to settle complaints against the company and purchase the assets of Full Tilt Poker for $731 million dollars. The $50 million forfeited by Mark Scheinberg will not be applied to any outstanding balance still owed to the DOJ as a part of the settlement last year.

Scheinberg has admitted no wrongdoing as part of the settlement and disputes that the funds are subject to forfeiture. Upon completion of the forfeiture the US will “fully and finally” release any property derived from PokerStars and Mark Scheinberg from “any and all civil claims” related to the DOJ’s complaint against PokerStars and related companies.

Rational Group’s Head of Corporate Communications, Eric Hollreiser, issued the following brief statement to pokerfuse:

Mark Scheinberg, the CEO of PokerStars, has agreed to forfeit USD $50 million to the US Government. This forfeiture settles potential claims against Mark’s assets based on the allegations contained in the April 15th 2011 US Government complaint against PokerStars. The agreement is not in response to any action that had been brought against Mark and contains no admission of wrongdoing, culpability or guilt on his behalf.