The ongoing civil case against the alleged conspirators in the “Black Friday” indictments of 2011 took another turn earlier this week as the U. S. Department of Justice filed a second amended complaint that seems to target former Full Tilt Poker board member Howard Lederer.
In the complaint filed on Monday, the Department of Justice added in new charges against Lederer and recounted his expenditures. Those expenditures – which include a good deal of property and exotic cars – are being targeted for seizure under the amended complaint. Lederer also will be facing several more charges under the amended complaint.
In detailing the activities of Lederer from 2006 to post-“Black Friday,” the Department of Justice alleges that over $44 million in “funds associated with criminal conduct” were put into various accounts that Lederer had access to. Approximately $3 million of those funds were paid to a company called Merlin Contracting & Development, which constructed a multi-million dollar home for Lederer in Las Vegas. The new amended complaint also demonstrates that another roughly $7 million went from various Lederer accounts to other companies in coordination with the new home. At least six other real estate properties are listed in the amended complaint that also allegedly ties in with money that Lederer received from Full Tilt Poker.
In addition to this expenditure, the Department of Justice alleges that Lederer spent much of his money on a fleet of sports cars. Such vehicles as a 2008 Maserati GranTurismo, a 2008 Audi Q7 and a 2009 Audi A8 all were purchased in 2008, once again allegedly with the proceeds that Lederer received from Full Tilt. In 2010, Lederer’s wife, Susie, allegedly purchased a 1965 Shelby Cobra from a California dealer and had several expensive repairs made on the car.
Perhaps the most damning purchase that shows up on the amended complaint is one that came after the indictments of “Black Friday.” According to the complaint, “On or about June 30, 2011 (more than two months following the unsealing of the federal indictments), Howard Lederer purchased a black, 2012 Audi A8-L…from Desert Audi.” Lederer apparently used the Audi A8 as a trade in and used the Maserati as another credit towards the purchase of the 2011 vehicle.
Along with these expensive purchases, Lederer is also alleged to have funded several investment and retirement accounts with the monies received from Full Tilt.
The purpose of this amended complaint by the government is the first step in what might be the downfall of Lederer. If the court accepts that these properties were purchased with the “funds from criminal conduct” (as the amended complaint states), then the Department of Justice can seek seizure orders for every one of the properties and vehicles listed above known as “forfeitures.” The forfeiture fee for Lederer? A stiff $42.5 million, of which seizure of the above mentioned properties, and their eventual auction, would go towards.
Also mentioned in the latest amended complaint are the properties of former Full Tilt Poker Chief Executive Officer Ray Bitar, but neither Chris Ferguson or Rafe Furst (the two other defendants named in last fall’s first amendment to the “Black Friday” complaint) were mentioned.
In issuing the second amended complaint, the Department of Justice has a laundry list of charges against the men. Included in these charges are illegal gambling, bank and wire fraud, several money laundering and conspiracy charges and fraud against Full Tilt players. There is a new addition to the charges, offenses of the Travel Act of 1952, which criminalizes the use of “interstate and foreign travel” in a racketeering enterprise.
As the new charges against Lederer were just released on Monday, there has yet to be a response from Lederer’s attorneys. Lederer himself hasn’t been heard from – nor shown his face at any poker tournament – since the April 2011 indictments were announced and it isn’t expected that he will be making any statements soon.
