Online Poker Lawyer Allegedly Hid Information from Client

Published Saturday, April 13, 2013 -

The fall of certain payment processors during the last few years has some who were caught in the Department of Justice dragnet that captured those involved in facilitating online gambling payments after 2006 wondering what were the lawyers thinking. Chad Elie a businessman from Las Vegas pleaded guilty to bank fraud and is currently serving his sentence in prison. The felon is now suing his lawyer for misleading him about the legalities of processing online poker payments. The lawyer in question Jeff Ifra was at the time was taking huge commissions for his advice to Elie.

The law suit claims that Ifrah was paid $4 million, including $1 million in commission payments. Elie claims, Ifrah was receiving $100,000 per month from the firm 21 Debit as a commission. The commission was paid to Ifrah for securing deals with various banks that agreed to process online poker payments. “Ifrah hid critical documentation,” the lawsuit states that Ifrah gave Elie “wrong advice regarding poker processing so that he could make a windfall from Elie, Full Tilt Poker and Pokerstars.”

The complaint filed in Nevada state court, says that Ifrah made a deal to provided testimony and information against Elie and others in order to avoid being indicted. Elie claims that Ifrah failed to disclose to government lawyers that he was receiving commission payments. Elie was one of 11 individuals who were indicted in April 2011 after the Department of Justice shut down Full Tilt, PokerStars and others PokerStars has picked up the residue from the Black Friday indictments but Full Tilt players in the States have yet to see the return of their funds. In 2010, Ifrah received a memorandum from the law firm Akin Gump that detailed discussions between the firm’s lawyers and government lawyers in Manhattan that “confirmed to Akin Gump and Ifrah that third party poker processing was illegal,” the law suit says. Elie claims that Ifrah kept this information to himself.

Related news

Return to Latest News