A Lake Success company specializing in processing class action claims has been chosen to oversee the fraud and money laundering settlement between a global online poker site and federal prosecutors, officials announced Wednesday.
Garden City Group will be in charge of compensating U.S. players as part of a forfeiture deal in July against Full Tilt Poker, one of three online sites sued last April by the U.S. attorney in Manhattan. The poker gambling site told its players that their funds were safe, but in reality, prosecutors said, the company did not have enough to repay all their players because Full Tilt used that money to pay $400 million in dividends to owners.
The claims processing company, which is headquartered in Lake Success and has offices in eight states, has worked on several high-profile lawsuit and bankruptcy cases, including BP's Deepwater Horizon oil spill in 2010, the antitrust suit against Visa Check/MasterMoney, and Borders' bookstore bankruptcy.
Under the settlement, the online card gambling site forfeited almost all its assets, including $184 million in accounts, which will go toward foreign players.
Garden City Group will work with PokerStars, another of the three sites sued by the U.S. attorney, to reimburse Full Tilt players in the United States. PokerStars also settled last year, agreeing to acquire Full Tilt's assets and to forfeit $547 million, which will be used to pay off U.S. players.
The victim claims process is expected to begin shortly, U.S. Attorney Preet Bharara said. Information on the claims can be obtained at FullTiltPokerClaims.com, set up by the Garden City Group, or by calling 866-250-2640.