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Poker Ecash Processor Forfeits 6.3 Million
July 12,2012 : ONLINE POKER E-CASH COMPANY FORFEITS $6.27 MILLION
Texas financial company says it was duped into performing online poker transactions
The case of Texas payment processing company LST Financial Inc received wide publicity in the US media Wednesday when documents surfaced in the records of a Manhattan federal court showing that it had agreed to forfeit $6,27 million in a settlement with federal prosecutors following Black Friday's actions against Pokerstars, Full Tilt Poker and Absolute Poker.
Whilst admitting no wrongdoing, the San Antonio firm claimed it was duped into processing players' payments to the three online poker enterprises
The Wall Street Journal reported that a North Carolina bank will get $212,000 from the funds forfeited by LST as compensation for losses incurred when it too was misled into assisting LST in illegal conduct.
The settlement includes an undertaking by the company and its management "not to knowingly provide, either directly or indirectly, payment processing services for Internet gambling, including Internet poker."
The quid pro quo for the forfeiture and promise of future conduct is that the federal authorities will return to LST an unquantified amount of money frozen by enforcement authorities pursuing the case and not associated with illegal activity.
Industry observers noted that the LST prosecution stemmed from the activities of one of the Black Friday indictees, Ryan Lang, who entered guilty pleas on UIGEA and tax offences earlier this year and is due for sentencing in September.
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