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PokerStars' Mark Scheinberg Settles with DoJ for $50 Million

PokerStars CEO Mark Scheinberg has agreed to pay $50 million to the U.S. Department of Justice (DoJ) as full settlement for operating in the U.S. post-UIGEA.

The payment is not tied in with last year’s deal that saw PokerStars agree to dish out $731 million to acquire the assets of Full Tilt and settle the Black Friday allegations against the company. The $50 million to be forfeited by Scheinberg is due seven days from the date the consent order was entered into the record by Judge Kimba Wood, who affixed his signature on June 10.

Like PokerStars before him, Scheinberg admitted no wrongdoing in agreeing to the forfeiture of funds. Isai Scheinberg, Mark’s father, is not included in the consent order and remains a fugitive. Isai was one of 11 individuals named as defendants in the Black Friday complaint.

Isai Scheinberg, though apparently never intending to lay foot on American soil, did agree to step aside from his duties at PokerStars as part of last year’s settlement. However, during discussions with Atlantic Club owners last month in PokerStars’ attempt to keep the casino purchase ongoing, Atlantic Club CFO Eric Matejevich contends that he spoke with Isai Scheinberg on the telephone. Such a conversation would likely be a violation of the DoJ settlement deal with PokerStars.

The forfeiture by Mark Scheinberg may be part of an attempt by PokerStars to clear its name and continue in its quest to purchase a New Jersey casino in order to enter the U.S. online poker market. A number of Atlantic City casinos other than the Atlantic Club are reportedly for sale and PokerStars Head of Corporate Communications Eric Hollreiser has stated in the past that the leading poker site would like to get in the game.

 

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Charles Rettmuller

Charles has been an avid poker player for a number of years, both live and online. He holds a degree in journalism and previously worked as a reporter for a Chicago-based newspaper. Charles joined the PokerUpdate team in early 2012 and writes daily news articles for the site.

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