Paul Bilzerian, convicted felon and father of controversial poker participant Dan Bilzerian, used his son’s hashish enterprise to cover cash he is owed the U.S. Securities and Trade Fee (SEC) for many years, federal investigators allege.
The elder Bilzerian and Ignite, the aforementioned hashish enterprise, together with Bilzerian’s long-time accountant, Scott Rohleder, had been indicted Friday by a grand jury in Los Angeles for fraud. Paul Bilzerian, who has claimed poverty for years, is alleged to have used Ignite to cover a part of the cash he is owed the SEC for the reason that early Nineteen Nineties.
Bilzerian’s Dealing with Authorized Points
Paul Bilzerian, 74, a former company takeover specialist, was convicted in 1989 on 9 securities associated counts, and was sentenced to 4 years in jail. The SEC then filed a civil swimsuit towards the white-collar felony, and a choose, in 1993, dominated in favor of the SEC and ordered Bilzerian to disgorge $33.1 million in earnings plus curiosity from takeover makes an attempt.
The quantity owed, with curiosity, got here to $62 million, however Bilzerian by no means paid it again, and has lengthy claimed that he not solely would not have the cash, however has been broke. Curiosity has continued to pile up over time, and now the feds are looking for $180 million.
However the Bilzerian’s at the moment are dealing with much more points as federal brokers declare that Mr. Bilzerian is not broke and as an alternative dodged paying the judgment whereas working the failed Ignite hashish enterprise.
“This indictment alleges a long-running sample of felony habits to keep away from a regulator’s judgment, mislead traders, and cheat the IRS,” stated United States Legal professional Martin Estrada. “My workplace will proceed to make use of all instruments out there to guard traders and make sure the safety of our nation’s economic system.”
Did Dan Bilzerian Make His Cash Via Poker?
Dan Bilzerian, a former GGPoker ambassador, has lengthy claimed to have received over $50 million taking part in poker in high-stakes non-public video games. That declare has been disputed by some members of the poker neighborhood, and plenty of have alleged he inherited his wealth from his father, maybe the cash owed.
Different poker execs, nevertheless, have recommended Bilzerian did make tens of millions on the poker desk. Probability Kornuth informed a narrative about taking part in with Bilzerian in 2013 through which the Chip Chief Teaching founder got here away impressed together with his recreation. He even helped Bilzerian put together to face Alec Gores, the billionaire Bilzerian claims to have received tens of millions off in heads-up non-public poker video games.
The social media playboy left GGPoker in June 2022, and referred to poker gamers as “f*****g nerds” following a bitter exit from the poker world. He is been on an anti-Semitic campaign on social media not too long ago, including to his popularity as a misogynist.
In line with the indictment, Paul Bilzerian, Ignite, and Rohleder allegedly conspired to impede the SEC from accumulating on the judgments by means of shell firms from December 2018 to September 2024.
Dan Bilzerian wasn’t particularly talked about within the indictment, however the indictment as an alternative referred to Paul Bilzerian’s son as “D.B.,” who was listed because the CEO of Ignite.
Paul Bilzerian, who left the U.S. years in the past and has been dwelling in St. Kitts and Nevis, has fought the SEC for years, seemingly doing the whole lot in his energy to keep away from paying off the now nine-figure debt. His declare of getting no cash has lengthy been disputed by the SEC, however he is apparently prevented opening financial institution accounts in his identify.
“What financial institution accounts? Do you assume I might be silly sufficient to have a checking account?” he informed the Wall Road Journal in 2014.
The indictment backs up the declare that the elder Bilzerian certainly would not have any financial institution accounts. However the Justice Division alleges he is been funneling tens of millions of {dollars} into Ignite Worldwide Manufacturers Ltd. the previous six years with assistance from his accountant, Rohleder. Prosecutors say though Dan Bilzerian is the listed CEO of Ignite, Paul Bilzerian was working the Canada-based firm behind the scenes.
Paul Bilzerian and Ignite had been charged Friday with defrauding the USA and wire fraud. Rohleder, who served as the corporate’s chief monetary officer, faces prices of conspiring to commit wire and securities fraud and aiding with the preparation of false tax returns. Dan Bilzerian, nevertheless, has not been charged with any crime.
The poker participant not too long ago listed his mansion on the market in Las Vegas, and he is looking for $25 million. He has over 30 million Instagram followers.
