DF just posted this.

http://diamondflushpoker.com/2012/10...lederer-files/

Part 2:

http://diamondflushpoker.com/2012/10...files-part-ii/

Part 3:

http://diamondflushpoker.com/2012/10...iles-part-iii/

Part 4:

http://diamondflushpoker.com/2012/10...files-part-iv/

Part 5:

http://diamondflushpoker.com/2012/10...-files-part-v/

Part 6:

http://diamondflushpoker.com/2012/10...files-part-vi/

Interesting stuff and well done...

But I think people will eventually find he was a poor director of a private company.

I'd say poor directors are pretty common

Let me give the real footnotes:

1)FTP was founded by a bunch of degen liars and thieves

2)As it became more successful, they increased the number of liar and thieves to be part of ftp

3)1 of the head liar/thieves, Mr. Lederer, realizes he is sitting on a gold mine of free cash and starts looting from the company. Jesus, Bitar and Furst join in and each becomes multi millionaires 10 x over.

4)Black Friday comes, the truth is exposed and everyone thinks that Lederer will actually all of the sudden tell the truth.- HA HA HA, GOOD ONE!!!

The truth is, we as former players on the site will never get the full truth but I am sure of 1 thing - Howard Lederer, Jesus Ferguson, Rafe Furst will randomly show up at a poker tournament within the next year or 2(maybe even earlier)and will try to start playing in public again once online poker is legalized in the US.

Those are the REAL FOOTNOTES

Quoted from the the 'backs out of interview thread'.

Eh, I found this article to be lacking.

Seems to be she is attempting to point out any minute legal discrepancy from Howard's interview.

Hope for more in the coming installments.

Edit: Thanks Diamond Flush for all the work.

I have to give df big kudos for the collection and dissemenation of this information.

It is clear to me that Bitar, ferguson, lederer, and furst conspired to buy owners off with payouts, eventually using player funds, to keep them from asking too many questions or causing trouble.

It is also clear to me that they likely used player funds to finance the rapid growth of their business from nearly the beginning. Why wait to earn the miner to launch that new promotion when you got 40 million of player deposits in the bank? Just take a little and pay it back later.

It cracks me up to no end when people want to blame the doj or Phil Ivey or anyone else for what happened. The buck stops at the board of directors. Those four bear the entire burden of responsibility here. Incompetence mixed with greed and ultimately criminal behavior is what got FTP to where it is.

They should have wanted outside eyes because the four of them were completely incompetent and entirely lacking experience

It is very common for companies to have outside board members to offer perspective. The problem was the company was run incompetently and unethically from day 1 and any outside board member with actual experience would have called them out on what they were doing.

Even some of the owners had misgivings but they were bought off.

I like the post and I do believe that on top of the player loans that they probably used company loans for advertising from the start. Of course guys like Ivey who are off shooting craps or playing golf and receive the call that we're going to start paying you 800K a month aren't the root of the problem the buck stops with the board.

I hope so...

This first installment was pretty devoid of new, salacious, or incriminating info. I'll take DF at her word for now, though, that she's got something more substantive to offer.

A suggestion, which I'll try to make in the least-douchey way possible: I think you should spend more time formatting & checking your article for grammar, vocab, and punctuation. I'd like your articles to get taken seriously, especially if they're to form the basis for a revelatory assessment of FTP's implosion and Howard's personal failures. But that article was chalk full of errors, and in several places unclear as to whether you were recapping Howard's testimony, giving your own commentary, or simply laying out known facts.

[QUOTE=Mr. J;35084887]First we should thank DF for her contributions and also wish her well in whatever matter she recently had to attend to.


Yes I've only recently become introduced to the writings of Diamond Flush and I'm a big fan. Sorry to hear you might be having family or personal problems. You're a royal flush in the poker community. P.S. I like that you stay anonymous. It gives the ******s less ammunition.

Definitely appreciate DF's work in all this!

So far, I don't see anything major exposed other than some clarifications of things that Howard exaggerated and minimized, which pretty much would have been expected under any condition. I expect this will build to something more and am looking forward to reading the rest of the articles.

Untrue. It was not "chalk full of errors". Prove it, quote it and show us all the mistakes Longfellow?

Nice work. Looking forward to more of what I initially thought happened. Howard spends a year coaching himself through every question imaginable....then quits his agreement with DF because he knows she knows more than everyone else knows.

I mean is the goal of her articles to tell the truth or make HL look like a liar?

Is it even relevant that she says anything outlandish about HL/FTP, as long as we get the truth?

got rid of that colon at the end eh

"That same article references Perry Friedman raising concerns in late 2006, that the coming was growing too fast and in fact that he had called for a vote to remove Ray Bitar as CEO."

"in a manner reasonably believed to be ion the best interest of the Company and its member and with such care"

HAHA that's it? Two sentences with a couple typos that any 6 year old could figure out the real words in under 5 seconds? This after DF had a family emergency today? Pathetic even for the tardiest of NVGtards.

Well, one of the big things to come out of this article, that wasn't directly stated, was that the Tiltware was formed as a manager managed LLC and not an owner managed LLC and that Lederer and Bitar were the managers. That greatly diminishes the responsibility non-managing shareholders had in the company. Lederer tried to paint the opposite picture.

People expecting someone to say Howard ordered the code red are being silly. All these little facts contradict everything Howard did after bf and clearly show him being complicit and guilty. The information provided is fairly significant when taken in scope with all we know and all the crazy things Howard used as defenses.

It can't be brought up enough that Howard says the operating agreement did not call for an independent audit of the financials. That is absurd excuse making that seems to work on the uninformed. It is absurd that FTP did not have audited financials and Howard is one of the people most responsible for making it happen and who most benefitted from it happening.

I understand that most people here don't have experience running private or public businesses but they should have been having audited financials from the beginning. It was a multi million dollar business with multiple owners.

The idea of a company with alleged billon dollar revenues not having regular independent audits is simply ridiculous.

hmm, i think I would rather the way she does it now. Get the information out quickly, edit later. If you look now, many mistakes have already been fixed.

the few that were spamming f5 all day got what they wanted as soon as possible, and nits like you can wait an extra hour, because you don't care about the info, just that it is well written

I'd like to hear more about the formation/role of Tiltware/PocketKings and how they tie into the picture.

Not having independent audits is really not that unusual in the real world. There are multiple companies that are closely held by their owners (like FTP, although at the end they brought in investors) that do not follow this practice. The majority of private companies place the trust in a a few finance employees who are tasked with producing accurate documents.

Although hindsight is 20/20, and any audit would have revealed the fraud, only publicly traded companies are required to have outside audits.

SOURCE: MBA in Finance.

+1

I think this is a pretty significant piece of information (and important to note your last point, that Lederer tried paint a different picture).

Thank you for the link

There were so many details in the two HL interviews - I guess if the whole thing had mattered enough to me, I'd have taken notes so I could have better processed all the info and looked for contradictions. But it didn't, so I didn't lol

So it's nice that somebody is doing that for those of us who aren't - sounds like DF really knows her stuff, so I'm looking forward to the rest of the series ... especially the ending when she ties it altogether. Sounds like it all ought to be interesting read!!

https://twitter.com/Diamond_Flush/st...92896246763520