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A German national residing in Naples, Florida was arrested last month for running online gambling payment processing businesses out of his home. According to the criminal complaint filed in the United States District Court for the Middle District of Florida, 29-year old Michael Olaf Schuett “did knowingly conduct, control, manage, supervise, direct and own an unlicensed money transmitting business.”
In fact, Schuett owns hundreds of business, nine of which are tied to payment processing. Those nine are MCM Capital Management Corp, MI Global Inc., South Naples Escrow Co., Southwest Florida Payroll Co., Woodhouse Systems, Mathew’s Trade Corp., and Internet Payment Services Group Inc. Schuett would receive wire transfers from two companies – the British Bluetool Ltd. and the German International Payment Systems – and would then send cashier’s checks, personal checks, or wires to customers located in the United States and Canada. While the exact composition of Schuett’s customer base is not exactly known, it is presumed that most, if not all, of his customers are online gamblers. UB.com and are both known to use MCM Capital Management as a payment processor and UB.com was mentioned (as Ultimatebet.com) in the criminal complaint.
It was the suspicion of shipping companies and bank employees that eventually led to Scheutt’s arrest. Examples of activities that raised red flags included:
- Schuett’s shipping of over 150 FedEx parcels from his home every week. FedEx employees opened some of the packages and discovered that each contained a check.
- Unusually high volume of wire transfers going in and out of Scheutt’s bank accounts, all with overseas companies.
- Some bank customers who attempted to cash checks written from an MCM Capital account told bank officials, when asked, that the checks were proceeds from playing online poker.
- Schuett told employees at one bank he used, Shamrock Bank, that his new account was to assist German nationals in purchasing real estate in Florida. The account’s activity was not consistent with what would normally be associated with real estate transactions.
All told, Schuett filtered millions upon millions of dollars from online gambling companies, through his companies and bank accounts, to customers in North America. An example of the sheer dollar volume involved can be seen with his Bank of America accounts. Since November 1st, 2007, Schuett opened approximately 40 accounts at the large national bank and transferred approximately $70 million in and out of them to about 23,000 customers.
Schuett is specifically charged with violating United States Code Title 18, Section 1960, which in part states, “whoever knowingly conducts, controls, manages, supervises, directs, or owns all or part of an unlicensed money transmitting business, shall be fined in accordance with this title or imprisoned not more than 5 years, or both.”
He is currently being held without bond in Lee County jail. Judge Sheri Polster Chappell denied bond because she believed Schuett could be a flight risk, as his visa expires in April, he is a German citizen, he has no employment in the United States, and one of the few things that might keep someone in the country, a spouse, may not be significant in this case. Schuett has only been married to his wife, 28-year old Jennifer Sherman, for one month and has only known her for nine months.
Naturally, concerns have been raised within the online poker community about what this means for players looking to receive funds from poker rooms. In the long run, many speculate that there will be no negative effect. Other poker rooms have experienced troubles with their payment processors, and while it does create payout delays in the short term, they always find other processors, making things fine in the long term. Perhaps most interesting is the idea that many payment processors that poker players imagine to be “legitimate” companies could really just be individual people receiving money from poker rooms and just mailing checks to players from their own private residences.
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03 10th, 2010
The weekend robbery of the European Poker Tour (EPT) Berlin event has garnered headlines around the world. On Monday morning, the tournament’s champion, Kevin “ImaLuckSac” MacPhee, appeared on CBS’ “Early Show” to break down the heist.
In one of the most bizarre events ever to take place during a poker tournament, masked gunmen stormed the Grand Hyatt Hotel in Berlin, nabbing a portion of the EPT’s prize pool. According to a Monday update issued by the Associated Press, the four thieves are still on the run and police have “no clear leads.” The perpetrators robbed the poker tournament’s registration area just after 2:00pm local time on Saturday in a midday assault and, according to the news outlet, escaped with a “low six-digit figure” of cash into a nearby mall. No one was harmed.
MacPhee told the millions of “Early Show” viewers live from Berlin, “It was one of the craziest days that I’ve ever experienced. There was a lot of panic in the room that day and then we were asked to come back and play for €1 million. It was very unusual.” Video of the robbery aired concurrently with MacPhee’s interview. A few hours later, participants returned to the tournament room and resumed their pursuit for the €1 million top prize.
MacPhee was seated at the feature television table with the scuffle began and recalled, “We weren’t really sure what was going on. I just saw a wave of people headed for the back exit. There was a lot of panic and the actual TV stage started to collapse. When that started to happen, all of the players got up out of their seats to see what was happening.” The commotion began out in the hallway and players funneled their way to safety within the tournament room, some seeking cover under tables.
The tournament’s eventual winner knew that someone with a gun was likely to blame for the near riot: “My first instinct was just to get down on the ground. I figured that there was only someone with a gun in the room that could cause that kind of panic. The gunmen didn’t even enter the poker room. They stayed near the tournament registration area, which was where the cash was. Thankfully, they didn’t come into the poker room and make it worse than it already was.” The tournament drew nearly 500 players.
News of the rare casino heist has made waves across the world’s largest media outlets. News outlets including the Sydney Morning Herald, Wall Street Journal, Huffington Post, and Toronto Star have all reported on the story, as have a variety of poker news outlets. According to The Local and reprinted in the New York Times, another assailant may be to blame: “Because the well-timed heist bore the signs of an amateur job, police told Berlin daily Berliner Zeitung that they now believe there was at least one other accomplice already inside the hotel who gave a signal to begin the raid.” Whether the accomplice worked for the Grand Hyatt Hotel remains to be seen.
Despite the financial loss, all players received their prize money and the tournament carried on to a conclusion. As for what MacPhee did to celebrate his rather eventful live win, the online poker player told “Early Show” viewers, “Sundays are our busiest day, so… I celebrated by playing more poker. I think I’ll get out in Berlin the next couple of nights and try to celebrate a little bit more.”
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Two players on recent hot streaks are among the chip leaders after Day 1A of the ’s () Bay 101 Shooting Star tournament. A total of 17 bounties took to the field on Day 1A, with 25 more expected today.
Greg “FBT” Mueller won two bracelets during the 2009 (), coming out on top in the $10,000 World Championship of Limit Hold’em for $460,000 and a $1,500 Limit Hold’em Shootout for another $195,000. Moreover, he made a third final table, taking seventh place in the World Championship of Seven Card Stud for $53,000. All told, Mueller logged one of the most successful WSOP showings in history and is up to his winning ways once again in San Jose, California, the site of Bay 101.
Mueller sent Shooting Star and recent WPT Southern Poker Championship winner Hoyt Corkins out on Monday. The pro was all-in before the flop with A-K, but Mueller, who is also a Shooting Star, picked up pocket aces. The board ran out Q-8-4-9-9 and Corkins signed over a commemorative shirt. Mueller also laid claim to the $5,000 cash bonus. The former hockey player has the second largest chip stack after Day 1A at 132,800, trailing only chip leader Vanna Tea’s 143,900.
Yevgeniy “Jovial Gent” Timoshenko is the reigning WPT Championship winner and also took down the 2009 World Championship of Online Poker (WCOOP) Main Event for $1.7 million. In 2008, Timoshenko found the winner’s circle of the Asian Poker Tour’s (APT) Macau Main Event for $500,000. Timoshenko, a Shooting Star, owned the fourth largest stack when play wrapped up for the night on Monday at 97,600. A total of 53 players remained of the 136 who entered.
Timoshenko dropped a portion of his stack late in the day. He led out for 6,900 into a pot of 10,000 on a board reading K-8-4-6-5. Team PokerStars Pro front man made the call and turned over 5-4 of hearts for two pair. Timoshenko had K-J for top pair and was a victim of a less-than-stellar river card. The hand boosted Negreanu to 50,000 in chips, but he ended the day with just 19,600, the 48th largest stack.
The first Shooting Star to depart was , who shoved on a flop of A-J-4 holding pocket queens. Wade Griffith held A-J in the hand for top two pair and Cloutier failed to improve on the turn or river. Griffith finished in 42nd place after Day 1A with a stack of 30,000 chips.
Besides Mueller, Timoshenko and Negreanu, the Shooting Stars who survived the day were (39th place with 35,100), Freddy Deeb (41st place with 30,800), and Steve Brecher (51st place with 10,800). Here are the top 10 chip stacks after the first of two starting days at Bay 101:
1. Vanna Tea - 143,900
2. Greg Mueller - 132,800
3. Oddie Dardon - 105,500
4. Yevgeniy “Jovial Gent” Timoshenko - 97,600
5. Joseph Elpayaa - 87,300
6. - 84,800
7. Chris “Fox” Wallace - 84,100
8. Bruce Kramer - 81,200
9. Daniel LaFrance - 79,400
10. Tyson Marks - 74,000
When play wrapped up for the day, the action was in Level 9, where the blinds were 300-600 with an ante of 75. No Shooting Star has ever won Bay 101 since it became part of the WPT in 2004.
As an added bonus, Tea pocketed a $10,000 cash prize for leading the pack after Day 1A; the leader after Day 1B will also collect $10,000. The cards hit the air at 10:45am PT this morning.
Stay tuned to Poker News Daily for the latest WPT results.
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03 9th, 2010
Ilari “Ziigmund” Sahamies would be the first player to take on the unknown Swedish pro.
After 451 hands of $300/$600 Pot-Limit Omaha, with Sahamies losing over $487k, the two moved their game to $500/$1,000 PLO, where they remained for 40 minutes.
By the end of the 259-hand nosebleed session, Sahamies logged off, down another $290,965.
With Sahamies gone, Isildur1 went on the hunt for his next opponent, finding him in Justin “ZeeJustin” Bonomo. The two played $200/$400 NLHE for 791 hands with Bonomo finishing up $187k.
Looking to bounce back after that NLHE loss, Isildur1 took on the CardRunners team, playing both Cole South and Brian Hastings heads-up at the same time.
Despite starting the year off with a white-hot streak of wins, South lost $334k over his 825 hands, while Hastings made $330k over a shorter 224-hand match, all at $300/$600 PLO.
Hastings, who holds the online record for most money made in a single session after crushing Isildur1 for $4.2 million on late in 2009, tried to repeat his feat, convincing Isildur1 to move their game back up to $500/$1,000, where they played for another 468 hands.
Although Hastings was unable to make anything close to $4.2 million, he came away from the nosebleed session with another $219k, up over half a million total on the day.
After some small sessions at smaller stakes games, Isildur1 sat for his final heads-up sessions, giving South a chance to get even on the day.
After 565 hands of $100/$200 PLO, and South getting himself suck another $222k, the two doubled the stakes, finishing their session with 344 hands at $200/$400.
Although he wasn’t able to get completely out of the hole, South managed to make back $77,958 before the end of the match.
In total, Isildur1 added $572,746 to his roll, putting him up well over $1 million in 2010 so far.
Below you can find Isildur1’s three largest hands of the day. To see more hands from Isildur1, including the $1.3 million dollar largest-ever online pot, head to .
03 9th, 2010
The PartyPoker.com Women’s World Open IV will take place in London, England March 23 and 24 featuring 24 of the best female poker players on the planet.
03 7th, 2010