Quote:
Originally Posted by cetacean
To me, this was the most interesting part of the blog:Quote:
Once the news broke that FTP was insolvent, based on sources I've spoken to, Howard spent every day trying to find a way to get the players paid. Many of the owners didn't agree with the direction Howard wanted to take the company, but it seemed to be a consensus that Howard's main purpose and motivation was to get the players paid.
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The best FTP solution would have been not to divert (steal) the players money in the first place.
Where did hundreds of millions of player money go?
1. The largest amount was paid to the owners as dividends. This went on for years and was not a onetime glitch or mistake.
Dividends are never supposed to be paid from money a business is trusted to hold and keep safe for other people.
2. Players money was loaned to friends and allies; very large and imprudent loans at that.
3. Players money was spent on overly lavish business expenses and handed to sponsored pros one way or another.
4. Phantom deposits were allowed for a long period of time. Had FTP taken the honest route and announced to the world that no US citizen would be allowed to deposit via their bank,
there would have been a traffic jam of worried US players trying to cash out. FTP simply did not have enough of the players money left to pay everyone..... panic; run on the bank; exposure, and so on.
"
Once the news broke that FTP was insolvent..." Only a totally complete idiot would not have worked very hard to find a buyer for FTP at that point.
Last edited by tuccotrading; 02-21-2015 at 03:00 PM.