Former poker champion Chris Ferguson settles with federal prosecutors

According to court documents, Ferguson agreed to forfeit millions of dollars he earned as a founder and principal in Full Tilt Poker, one of three online gambling businesses whose access to American customers was cut off in April 2011 following a slew of criminal indictments.

Government prosecutors labeled Full Tilt Poker nothing more than a giant Ponzi scheme. The website's owners and operators were accused of diverting funds from gamblers into their own pockets.

Ferguson was being sued by the US Attorney for the Southern District of New York via a civil case filed in 2011 for more than us$ 42 million but Tuesday saw the professional poker player agree to a settlement that would see him hand over us$ 2.35 million in cash along with an undisclosed amount contained in a ‘Ferguson Account’ with Citibank in exchange for not having to admit any wrongdoing or liability.

The settlement is reminiscent of December’s agreement with former Full Tilt Poker director Howard Lederer, and will also see the 49-year-old five-time World Series of Poker (WSOP) bracelet winner be forbidden from working for or deriving any funds from unauthorised US-based Internet gambling sites.

“Ferguson agrees to forfeit to the United States all funds in the Ferguson Account for disposition according to law pursuant to Title 18, United States Code, Section 981, without admitting to any liability thereunder,” reads the settlement. “This stipulation and order of settlement shall in no way be deemed an admission of culpability, liability or guilt on behalf of Ferguson.”

In July, the actions against Full Tilt as a company were largely resolved and the website was taken over by rival Poker Stars, which agreed to pay a us$ 731 million settlement to the government to resolve its own legal issues.

Out of the settlement, us$ 150 million will be used to refund money owed to American-based Full Tilt customers. Ferguson's surrendered money will be added to the player repayment pool.