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PartyGaming founder, Dikshit, receives one year probabtion in New York court
Posted 12/18/10 : PartyGaming founder receives one year probabtion in New York court
Our readers will recall the case two years ago of Anurag Dikshit (39), one of the founders of online gambling giant, Party Gaming plc.
After resigning from the company, Dikshit independently negotiated a plea deal to co-operate in the ongoing investigation with US Department of Justice officials, and made a payment of $300 million in order to clean his personal slate. Sentence was delayed for two years and this week has handed down by a New York District Court.
Forbes news reports that Judge Jed Rakoff sentenced Dikshit to one year’s probation but questioned why other prosecutions had not come before the courts - “Nobody else has been indicted,” said Judge Rakoff. “It has been two years since this defendant began co-operating, what’s going on?”
In response, Assistant U.S. Attorney Arlo Devlin-Brown, indicated that the investigation remains ongoing and stated "there are challenges in this prosecution".
Dikshit's legal representative, Mark Pomerantz, commented that he and his colleagues had discussed the confusing circumstances surrounding the case “hundreds of times.” In arguing for no jail time, Pomerantz highlighted Dikshit’s $300 million payment. He said Dikshit, who is a citizen of India with no ties to the U.S., had originally been given legal advice that it was unlikely he would be charged, and even that if he was charged the chances of extradition were slim.
“The acceptance of responsibility is extraordinary,” said Pomerantz. “He wanted to square his accounts with the U.S.”
Party Gaming subsequently settled with the US Justice Department regarding its pre-UIGEA activities for $105 million. However, co-founders Ruth Parasol DeLeon and Russell DeLeon were not charged and as far as is known have not reached any settlement with the US authorities.
Dikshit has no further ties with PartyGaming after selling off his remaining shares in the company over the past two years for a reported $450 million and spends his time on his Charity Foundation, Kusuma Trust.
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