PokerStars Founder Pleads Guilty

Isai Scheinberg, founder of PokerStars, has pleaded guilty to one count of operating an illegal gambling business. Mr. Scheinberg faces a maximum sentence of up to five years in prison, with the date for the sentencing yet to be set.

SCHEINBERG’S SURRENDER
The plea comes two months following Scheinberg's surrender to U.S. authorities, after being accused and charged for planning bank fraud, money laundering, and illegal gambling by the United States federal government. After initially pleading not guilty to all charges, the PokerStars owner was released on $1 million bail. 

As the reports indicate, Scheinberg was taken into custody by the officials while he was traveling from Switzerland to New York on January 17, 2020. Allegedly, a few months prior an extradition order was passed for Scheinberg after he moved to Switzerland. 

SUSPICIOUS PAST
Scheinberg founded PokerStars in 2001 and the platform quickly became popular among gambling enthusiasts. However, in 2011 things turned against the poker platform when the U.S Attorney’s Office for the Southern District of New York confiscated the PokerStars.com domain name. 

Alongside Scheinberg, 10 other executives of other major online poker rooms were charged on account of bank fraud, money laundering and illegal gambling. This event is known in the gambling world as “Black Friday.”

Shortly after the proceedings, PokerStars regained its domain name and started operating its business outside the US. In 2012, the company had to pay approximately $731 M to the government to settle the lawsuit filed against them. This move helped PokerStars to win back the assets of Full Tilt Poker, following the firm’s falling into disgrace.