A payment processor who processed payments from online poker services before the infamous Black Friday has filed a lawsuit against a lawyer for negligence in advising him of the laws relating online poker. Chad Elie, an investor in SunFirst Bank, which processed payments for online poker services, regularly consulted with former Full Tilt Poker lawyer Jeff Ifrah before and during the time both their respective companies conducted business together.
Currently in his third month of a five month prison sentence for conspiracy to commit bank fraud and to operate illegal gambling businesses, Elie claims to have paid Ifrah a total of around $4 million for his services. According to Elie, Ifrah has received $100,000 per month from his processing company, 21 Debit, for brokering deals with banks that agreed to conduct transactions from online poker.
The lawsuit put forward by Elie claims that Ifrah gave Elie “wrong advice regarding poker processing so that he could make a windfall from Elie, Full Tilt Poker and Pokerstars.” It also states that throughout the time they worked together, Ifrah “Made continuous representations…that according to the Federal Deposit Insurance Corporation (FDIC) there were no problems with Pokerstars, Full Tilt Poker and Elie continuing to process poker transactions.”
Elie was one of 11 people indicted in 2011 in what has become known in the poker community as Black Friday. He was one of eight of those eleven who eventually pleaded guilty to the Black Friday related crimes he was indicted for. Ifrah, on the other hand, still has professional associations with PokerStars, and has not yet provided any official comment on the legal proceedings brought against him by Elie.