My Comments on the Cheating Scandal and the KGC’s Recent Decision
Tuesday, September 15, 2009 - COO
Hey UB’ers,
I wanted to blog today to discuss the recent decision by the Kahnawake Gaming Commission that was released on Friday.
You can find their press release and their document which details their decision in the News section of their website at http://www.kahnawake.com/gamingcommission/
You can also find our press release, which responds to their decision under our News section http://www.ultimatebet.com/poker-news
I am very pleased that a lot of the details of this investigation have been released. Specifically, I am very happy that the entire list of user names was included in the release, as I know many of our customers have been patiently waiting for this.
If players have any questions relating to the refunds please contact our Poker Security department at pokersecurity@ultimatebet.com or call 1.888.200.2933.
It is very important to us that everyone understands that our company had nothing to do with the cheating on UltimateBet. The people involved worked for UB prior to Tokwiro (UB’s parent company) buying the business in October 2006. The KGC’s findings reinforce this fact.
Though the findings are pretty comprehensive, I am aware that the KGC release raises some new questions for the poker community. I wanted to provide some insight into those questions and concerns today.
The Limits of the Investigation
Throughout the investigation we questioned as many people as possible trying to determine things like: who built the software, who benefited financially from the cheating, who else might have known about the cheating, etc. Unfortunately, every door we knocked on gave us very little additional information that we could use.
This limited the Tokiwro and KGC investigations because the only evidence available was data. Tokwiro is a provider of online gaming services and the KGC is a regulatory body for the gaming industry – neither are police forces and do not have the ability to interrogate or interview individuals in the same way as a typical law enforcement agency would.
The Additional 31 Names
In the KGC’s report, they make reference to providing the authorities with a list of 31 individuals who were associated with Russell Hamilton, the cheating accounts and/or transactions related to the cheating.
I have not seen the specific report that they provided, but I can make a very educated guess as to which names were included.
I realize to some people it now sounds like there was a group of 31 persons who conspired to cheat. However, in my opinion that is not what the list of 31 persons represents.
Since the investigations were limited to mainly data, it is very difficult to prove how much knowledge someone had about the cheating or how involved they might have been. The list of 31 individuals represents a lot of people that fall into this category. I believe this list includes names that:
- Benefited from the proceeds of the cheating in any way
- Enabled the cheating by changing the user names of accounts
- Enabled the cheating through excessive player-to-player transfers
- The cheating accounts were registered to
- Might have been involved in developing the software
In my opinion, this is most likely a list of everyone who might have been involved, or should be questioned in greater detail by authorities, as their testimony would be very important to determining exactly what happened.
Legal Complexities
I will not go into too much detail about this subject because I am not a lawyer. However, I think it is very important to mention that the current legal environment in the United States, relating to online poker, makes it very complicated for the proper authorities to work with us and for us to bring a claim against individuals in the United States.
The regulation of online poker in the United States is very, very necessary because of exactly this type of jurisdictional complication. Online poker will continue to thrive across the world because of the popularity of the game, its flexibility and its convenience. Land-based poker is an amazing game too but it involves leaving your home, wait lists, and has a limited offering of limits and games. Online poker allows you to enjoy games for whatever limit your budget allows, you never have to worry about waiting, and you never have to leave your home.
If everyone agrees that players will continue to play online regardless of the legal environment in the US, which I think most people recognize and agree with, then it is extremely important that it does become regulated in the United States. The global regulation of online poker will protect US citizens from situations like this, when a crime is difficult to investigate and prosecute. If online poker was regulated in the US, multinational regulatory bodies could fully cooperate and share information when incidents like these occur.
Russell Hamilton
Many people have already asked why only Russell Hamilton’s name was released and not the others. In my opinion, the KGC released his name because there was an overwhelming amount of evidence that showed he was the person using the software and accounts to cheat, that his close associates helped facilitate the changing of usernames and the movement of monies, and that he was the main beneficiary of the proceeds from the cheating. This overwhelming evidence and the need of the poker community to know exactly who was behind the cheating were, in my opinion, the main reasons that the KGC was comfortable releasing his name. The other 31 names involve people who might have known about the cheating or helped enable the cheating. In many cases it is possible these individuals enabled the cheating without actual knowledge of the cheating itself.
My Personal Experience
I would like to take a minute to talk to all of you about my personal experience relating to the cheating scandal. As I’m sure all of you can imagine, it has been a complete roller coaster for me – and many of our staff.
The investigation and corresponding audits were complex and grueling. The investigation was the worst part because it was such a horrible fraud, where individuals stole tens of millions of dollars from customers and friends who trusted them. There are also many smaller personal horror stories from those that were affected by this fraud, many of which turned my stomach and I will never forget.
It has also been weird getting used to being very unpopular. Generally, I think I’m as likable/unlikable as the next guy, but I am the name and face of UB now and I understand that people have to focus their frustrations somewhere.
The most positive thing that I will take from this horrible situation is that our company successfully settled with the previous owners of UB for the amount of USD$15,000,000.00. With this money and a lot of Tokwiro’s own money, we were able to financially compensate players who lost money to the cheating accounts. I know a lot of people will never like our company and brand because of this unfortunate incident, which I respect their decision as I am sure I might have similar feelings if our roles were reversed. However, there are a lot of people who were refunded a lot of money, who know that we were not involved in the cheating and that UB is a safe place to play poker now. I know a lot of them are very appreciative of what we did and I think the individuals who work for UB should be proud of this accomplishment.
Thanks
I would like to thank all of our loyal customers and the entire poker community. I truly believe poker players are the most intelligent group of people around and I will leave 100% of the credit for exposing this fraud to you.
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September 15th, 2009 at 5:30 pm
Thanks, Paul. Really good to see a positive footnote end such a challenging chapter in UB’s history. Now we can get back to the business of being the best damn poker site out there!
Rock on -
-hd.
September 15th, 2009 at 8:15 pm
I like how you avoid saying that ALL monies stolen were returned.
September 15th, 2009 at 11:18 pm
I think the fact you guys still have players in the ten thousand digits at any given time says a lot about what many players think of this site. If people thought UB was so terrible, they wouldn’t stick around and play here. There are lots of online rooms struggling with low traffic, and you guys seem to be thriving in spite of what could have been a crushing disaster for you. I’ve always enjoyed the site, and have appreciated the honesty you guys have put forward in the blog here regarding this.
September 16th, 2009 at 1:03 am
Since I’ve been playing poker on UB it has been nothing but a positive experience. And since I am involved with UB I take it personally when people talk crap about the site. I don’t associate my name with something that I don’t believe in 100% so when there is negativity aimed at UB, I feel like it’s aimed at me. Your eloquence on the matter and ability to make things transparent will hopefully quell some of the chatter. See you in Aruba.
Cheers,
Scott
September 16th, 2009 at 12:28 pm
Hi paulodiablo,
Your words mean an awful lot to me and the rest of the people that work for UB.
We look forward to making your experience even better in the future.
Thanks,
Paul
September 16th, 2009 at 12:30 pm
Hi Scott,
I understand your frustration with the situation and thank you for the complement. Hopefully, we can answer all of the outstanding questions anyone might have and be able to put this behind us in the near future.
ARUBA!! Cant wait!
Cheers,
Paul
September 16th, 2009 at 12:38 pm
Hi poker fan,
I am not sure what you are referring to. We completed our refunds which total over USD$22 million. Players who lost money to the cheating accounts listed in the report were refunded.
If you have any issues or concerns with the refunds please contact us at pokersecurity@ultimatebet.com or call 1.888.200.2933.
Thank you.
Paul
September 16th, 2009 at 1:29 pm
Hey Dave,
I’m with you. Let’s keep making UB better and better.
Chrz,
Paul
September 16th, 2009 at 5:07 pm
paul
ty for giving up some insight into the sitaution maybe some ppl will have faith in ub again
September 16th, 2009 at 10:56 pm
So, what Legal Authorities are actually involved? Who was this reported to? What if someone has more info to provide, but doesn’t really trust the KGC or UB with the new info? I would like to report it directly to the authorities now handling the case, so I ask again, what legal authorities did the KGC or UB report this matter to? The FBI? The DOJ? The RCMP? Just curious
September 19th, 2009 at 2:17 pm
[...] More than a week has passed since the Kahnawake Gaming Commission (KGC) issued an 11-page report documenting its lengthy investigation into the cheating that transpired on the online poker site Ultimate Bet between 2003 and 2007. Tokwiro Enterprises, the company that currently owns and operates both Ultimate Bet and Absolute Poker, issued its official statement last weekend, but earlier this week, the company’s Chief Operating Officer (COO) Paul Leggett offered his personal thoughts on the matter in his official UB blog. [...]
September 19th, 2009 at 2:32 pm
[...] More than a week has passed since the Kahnawake Gaming Commission (KGC) issued an 11-page report documenting its lengthy investigation into the cheating that transpired on the online poker site Ultimate Bet between 2003 and 2007. Tokwiro Enterprises, the company that currently owns and operates both Ultimate Bet and Absolute Poker, issued its official statement last weekend, but earlier this week, the company’s Chief Operating Officer (COO) Paul Leggett offered his personal thoughts on the matter in his official UB blog. [...]
September 19th, 2009 at 5:04 pm
[...] More than a week has passed since theKahnawake Gaming Commission(KGC) issued an 11-page report documenting its lengthy investigation into the cheating that transpired on the online poker siteUltimate Betbetween 2003 and 2007. Tokwiro Enterprises, the company that currently owns and operates both Ultimate Bet andAbsolute Poker, issued its official statement last weekend, but earlier this week, the company’s Chief Operating Officer (COO)Paul Leggettoffered his personal thoughts on the matter in hisofficial UB blog. [...]
September 19th, 2009 at 5:14 pm
[...] More than a week has passed since the Kahnawake Gaming Commission (KGC) issued an 11-page report documenting its lengthy investigation into the cheating that transpired on the online poker site Ultimate Bet between 2003 and 2007. Tokwiro Enterprises, the company that currently owns and operates both Ultimate Bet and Absolute Poker, issued its official statement last weekend, but earlier this week, the company’s Chief Operating Officer (COO) Paul Leggett offered his personal thoughts on the matter in his official UB blog. [...]
September 20th, 2009 at 1:20 am
[...] More than a week has passed since the Kahnawake Gaming Commission (KGC) issued an 11-page report documenting its lengthy investigation into the cheating that transpired on the online poker site Ultimate Bet between 2003 and 2007. Tokwiro Enterprises, the company that currently owns and operates both Ultimate Bet and Absolute Poker, issued its official statement last weekend, but earlier this week, the company’s Chief Operating Officer (COO) Paul Leggett offered his personal thoughts on the matter in his official UB blog. [...]
September 20th, 2009 at 1:28 am
[...] More than a week has passed since the Kahnawake Gaming Commission (KGC) issued an 11-page report documenting its lengthy investigation into the cheating that transpired on the online poker site Ultimate Bet between 2003 and 2007. Tokwiro Enterprises, the company that currently owns and operates both Ultimate Bet and Absolute Poker, issued its official statement last weekend, but earlier this week, the company’s Chief Operating Officer (COO) Paul Leggett offered his personal thoughts on the matter in his official UB blog. [...]
September 20th, 2009 at 1:31 am
[...] More than a week has passed since the Kahnawake Gaming Commission (KGC) issued an 11-page report documenting its lengthy investigation into the cheating that transpired on the online poker site Ultimate Bet between 2003 and 2007. Tokwiro Enterprises, the company that currently owns and operates both Ultimate Bet and Absolute Poker, issued its official statement last weekend, but earlier this week, the company’s Chief Operating Officer (COO) Paul Leggett offered his personal thoughts on the matter in his official UB blog. [...]
September 20th, 2009 at 6:04 am
[...] More than a week has passed since the Kahnawake Gaming Commission (KGC) issued an 11-page report documenting its lengthy investigation into the cheating that transpired on the online poker site Ultimate Bet between 2003 and 2007. Tokwiro Enterprises, the company that currently owns and operates both Ultimate Bet and Absolute Poker, issued its official statement last weekend, but earlier this week, the company’s Chief Operating Officer (COO) Paul Leggett offered his personal thoughts on the matter in his official UB blog. [...]
September 20th, 2009 at 6:39 pm
[...] More than a week has passed since the Kahnawake Gaming Commission (KGC) issued an 11-page report documenting its lengthy investigation into the cheating that transpired on the online poker site Ultimate Bet between 2003 and 2007. Tokwiro Enterprises, the company that currently owns and operates both Ultimate Bet and Absolute Poker, issued its official statement last weekend, but earlier this week, the company’s Chief Operating Officer (COO) Paul Leggett offered his personal thoughts on the matter in his official UB blog. [...]
September 28th, 2009 at 5:34 pm
200k gauranteed!
i raise in early position with kings ,second to last call my 700 chips bet ,flop comes 889, i bet he calls, he ships all in on river he has 10j offsuit….
why would someone call a 700 chip raise with 10j offsuit when blinds 50-100 with that kinda hand>>>????
jayemjaye was the culprit here should be ashamed playing like that..U cost me my bankroll idiot ,…
play all the satts and qualifiers to lose a major tournament to stupid players like this,..makes u wonder
September 28th, 2009 at 5:35 pm
oh by the way ub decided to let him catch his straight on the turncard, I bet out every street he still called,..
how is it amazing how these players can get away with winning when they hold what is in fact always the worst hand??
October 22nd, 2009 at 10:11 am
Perhaps back then we still had a memory of a better time to keep us hoping that it would come around again, sometime. ,
November 7th, 2009 at 5:29 pm
I quit your site because I went broke playing in the bigger NL hold-em every night at the end of my day. I am a pro who won at Party Poker but lost at UB to players who always played badly but drew out. Also, I bluffed and got called several times by someone with not even a pair, once with a Jack high. That was when I became suspicious. If you check my account records you will find I went busted after depositing a least $2000. The exact amount I cannot remember after all these years because it was an embarrassing mistake to be cheated and not realize it until I heard about it on the net. I have promised myself “Never Again”!
Stupidjerk, aka, Don Duncan
P.S.: I was not contacted or offered any refunds, yet I played nightly in the big game where cheating occurred. You should be able to check the record of my play and see for certain that I was cheated. Please advise.
November 10th, 2009 at 12:24 am
I’ve played online poker for years… go all the way back to Planet Poker. I play on Pokerstars or Full Tilt nearly every day currently ( I *use* to play on UB). I’ve always read the poker message boards and I simply CAN’T TRUST UB with my money, that’s why I haven’t deposited/played there since the scandal hit (kinda hard to patronize a proven cheating site on principle alone, ya know?).
Now I get this email and respond to their survey and think “hey, maybe UB has gotten their act together”. I click on the link Paul provides for the KGC and it doesn’t even link me to the KGC report — lol, er, nice job there.
Just more ‘evidence’ of UB incompetence…and I’m gonna trust them with my money?
And what’s with the *crickets* from Paul on the Don Duncan post?
Ah, sorry… UB still has much to prove before I ever deposit another dime with them (and for the record, the 3 friends I got to join UB/Absolute no longer play there either, per my instructions not to).
Try HARDER, UB.
November 10th, 2009 at 1:29 am
I don’t know if I’ll ever deposit money on your site again. But 3 months ago I’d have said there is no way I’d ever deposit money on your site. I hope you guys are really on the up-and-up.