Do you keep in mind the net poker site Lock Poker and the way it shut down, owing tens of millions of {dollars} to gamers within the type of unsettled withdrawal requests? Whereas the tens of millions of {dollars} are nonetheless lacking and unlikely to be returned, court docket paperwork counsel that the founder and CEO of Lock Poker finds herself on the hook for over $2.2 million in damages prompted on account of Lock’s mother or father firm going bankrupt.
Lock Poker burst onto the net poker scene in 2007 and made a direct splash in its waters. Again then, most on-line poker rooms provided their companies to U.S.-based gamers regardless of the passing of the Illegal Web Playing Enforcement Act of 2006 (UIGEA). Lock Poker was a preferred hang-out for American grinders, and enterprise gave the impression to be booming. Nevertheless, the location folded 9 years later, with gamers owed a mixed sum considered as much as $15 million.
Huge Identify Professionals Be a part of Lock Poker’s Roster
Two years after launching, Lock Poker’s proprietor and CEO Jennifer Larsen sanctioned the signing of a number of high-profile, distinguished poker professionals to the location’s roster. Eric “Rizen” Lynch got here on board and was made Vice President of Product Improvement after which poker site supervisor. Others who joined the corporate in numerous roles included Mike Leah, Matt Stout, Kyle Bowker, and Lee Childs.
On-line legend Chris Moorman, Paul Volpe, Annette Obrestad, and Michael Mizrachi could be a part of the Lock Poker workforce through the years. Every part appeared rosy, however one thing was significantly unsuitable behind the scenes.
Cashout Issues Start Surfacing
Issues concerning the web site started surfacing in 2010, with Lock Poker showing on Casinomeister’s rogue listing for gradual funds. Then got here poker’s Black Friday to throw one other spanner within the works. On April 15, 2011, the U.S. Division of Justice (DOJ) seized a number of on-line poker rooms’ web sites and charged their executives with cash laundering, unlawful playing, and wire fraud.
Unsurprisingly, banks and fee processors distanced themselves from on-line poker rooms, making it extremely difficult for these websites to simply accept deposits and course of withdrawals.
Regardless of these struggles, Lock Poker appeared that they may climate the storm. Higher but, they introduced they wereleaving the Merge Community and buying the now-defunct Cake Community to change into standalone operators. Nevertheless, one thing was rotten within the state of Denmark.
The Begin of Lock Poker’s Demise
Participant site visitors dwindled on the brand new community, leading to a scarcity of recent deposits and, due to this fact, rake and match charges, however extravagant spending by the corporate’s administration continued, in line with Lock Poker’s former Director of Social Media and Affiliate Advertising, Shane Bridges.
Bridges spoke to Pokerfuse in February 2015, shortly earlier than the location went darkish, and claimed Larsen and her administration workforce have been shopping for “$500 bottles of wine with each single meal, Classic Dom any time champagne was drunk, and insane overtipping.” Bridges added the Lock Poker executives took first-class flights in all places and stayed in “insane five-star boutique motels.”
In Could 2013, issues appeared to come back to a head. Some Two Plus Two discussion board posters claimed they hadn’t obtained withdrawals requested the earlier yr, with U.S. gamers ready 5 months or extra for funds to reach. The cashout points created a black market the place gamers purchased funds tied up on Lock Poker. Nevertheless, the location quickly put a cease to that occuring.
Lock canceled withdrawal requests that had been lingering for months and contacted affected gamers with an electronic mail studying:
“Please notice that participant transfers and winnings derived from participant transfers will not be eligible for payouts. If you happen to require additional help, please don’t hesitate to contact us.”
The surprising growth understandably prompted outrage amongst Lock’s clients. A number of Lock Poker Elite Professional members, together with Chris Moorman and Paul Volpe, parted methods with the beleaguered on-line poker site. On the time, Volpe instructed PokerNews, “I do not wish to bash Lock, but when folks do not get paid, then I do not wish to be both.”
Lock was now in freefall. On-line searches for Lock and withdrawals returned hundreds of outcomes from offended clients. Revered professionals distancing themselves from the location did not assist, and site visitors dwindled to between 10 and 20 gamers. The location hadn’t paid anybody for a yr; the writing was on the wall.
In April 2015, Lock Poker closed its doorways and turned off the lights with no written warning or clarification. Gamers started reporting that the location was unavailable. The web site remained lively for some time, however participant accounts have been inaccessible. Lock Poker, which had accepted deposits proper as much as folding, had ridden off into the sundown with roughly $15 million owed to scammed gamers.
Shadey Dealings Behind the Scenes
The executives behind Lock Poker apparently went to nice lengths to create confusion and distance themselves from any authorized motion.
A Curacao-based belief firm, Carmanco, established the playing firm Cipaco, which operated Lock Poker and its on line casino. Claims towards Cipaco piled up, so every little thing was transferred to Stacktrace NV in 2013.
Carmanco established Stacktrace NV in 2012 and started working Lock Poker in 2013 utilizing the grasp license of Cyberluck, one other firm that Carmanco established. Gamers didn’t should create new accounts, resulting in later claims that the takeover solely created uncertainty concerning the duty for the claims.
Carmanco was a director of Stacktrace from its inception till February 2015, when it formally withdrew its directorship. Three months later, a month after Lock Poker went darkish, Stacktrace was declared bankrupt.
Courtroom Rulings and Implications
In 2018, a court docket ruling discovered Carmanco and Cyberluck have been collectively responsible for damages as a consequence of mismanagement and negligence. Each have been ordered to pay an preliminary advance of 100,000 guilders ($55,500), which Cyberluck complied with.
The Courtroom of Justice reaffirmed this choice in 2020. By February 2022, the chapter trustee acknowledged collectors’ claims totaling over $1 million. Moreover, the court docket accredited prices related to the chapter course of amounting to 187,000 guilders ($103,600), and ongoing prices of roughly 75,000 guilders ($41,400).
The Curacao court docket ordered Carmanco to pay greater than $1.2 million in damages whereas holding Cyberluck responsible for $1 million. Cyberluck declared chapter in October 2024. Nevertheless, as a result of the judgment had already been requested earlier than that date, Cyberluck continues to be on the hook for $1 million.
The Plot Thickens: Unnamed Canadian Girls Liable For $2.2 Million
Each Carmanco and Cyberluck felt that another person ought to pay the fee, a Canadian girl who was the Final Useful Proprietor (UBO) of Carmanco. It so occurs that Jennifer Larsen, founder and CEO of Lock Poker, is Canadian.
In response to anonymized court docket paperwork printed on the Dutch web site Casinonieuws.nl, the UBO utilized for financial institution accounts for Lock Poker’s Stacktrace in 2014 and was the one individual approved to get rid of these accounts. Lock Poker’s participant deposits discovered their method to one other firm’s checking account. The identical unnamed Canadian girl utilized for these financial institution accounts.
The unnamed Canadian girl didn’t seem in court docket and was ordered to pay the prices that Cyberluck and Carmanco have been convicted of in her absence.
Whereas it appears unlikely at greatest that Lock Poker’s former clients will ever see a cent of their lacking funds, they might take some solace in the truth that the one who masterminded what was basically a rip-off faces paying over $2.2 million in damages.
