Factors for courts to consider [to determine whether piercing the corporate veil is appropriate]

• Absence or inaccuracy of corporate records;
• Concealment or misrepresentation of members;
• Failure to maintain arm's length relationships with related entities;
• Failure to observe corporate formalities in terms of behavior and documentation;
• Failure to pay dividends;
• Intermingling of assets of the corporation and of the shareholder;
• Manipulation of assets or liabilities to concentrate the assets or liabilities;
• Non-functioning corporate officers and/or directors;
• Significant undercapitalization of the business entity (capitalization requirements vary based on industry, location, and specific company circumstances);
• Siphoning of corporate funds by the dominant shareholder(s);
• Treatment by an individual of the assets of corporation as his/her own;
• Was the corporation being used as a "façade" for dominant shareholder(s) personal dealings; alter ego theory;

It is important to note that not all of these factors need to be met in order for the court to pierce the corporate veil. Further, some courts might find that one factor is so compelling in a particular case that it will find the shareholders personally liable.

The bolded factors are ones that I can see some possibility of applying here.

Civil lawsuit isn't the same as criminal case. Due to rules prohibiting trying someone "in absentia" (fancy way of saying not there) you can avoid criminal prosecution by simply not going to court (a reason courts often ask for bail).

In cvil lawsuit there is no "in absentia" issues. If someone sues you and you don't show the court can grant a summary judgement. Basically they just listen to one side (plantiff) and decide what damages to award. If you fail to mount a defense there are no due process issues you simply throw yourself on the mercy of the court and accept any damages awarded.

The defendants named have property, cash, and assets in the US. Property which can be seized to satisfy the judgement. This doesn't mean I think the lawsuit will be successful just pointing out "not showing up" is not a defense.

Quick question - the indictment by the DOJ is just a claim isn't it? I mean it hasn't been established as true in a court yet has it? The claimed illegal activities are still at this time alleged and not proven?

You state that like it is an absolute fact. It isn't. Try reading about "piercing the corporate veil".

Shareholders are not responsible for a corporation's LAWFUL debts however if the court finds the corporation was acting improperly they can transfer those debts from the corporation to the owners. In this case FTP and Tiltware are both LLC which provide even less protection than a public corporation in certain cases.

It isn't an automatic event. Plaintiffs need to prove that there is a basis to transfer debts from corporation to defendants but it is nonsense to say it can't happen.

To everybody asking: Is this a bad thing considering the recent developments in the last couple days? Of course it's a bad thing. It probably won't be anything detrimental, but obviously investors aren't going to like multiple lawsuits being filed against the company they are planning to invest in.
Just another case of poker players only looking out for themselves.

Good for them, they need putting under pressure. It very much appears they have been living their balla lifestyle on normal poker players deposits for years.

Someone should do the same at UB - make sure you get Sebok's name on there.

DON'T MESS WITH TODD ****ING TERRY

Wishful thinking. How do you expect to collect anything from a company that is having cash flow problems and is facing a high eight figure accounting shortfall?

That is correct which is why plaintiffs indicated this case is related to 11-cv-02564 (see on first page bottom right). This case is unlikely to proceed until DOJ civil case is satisfied (one way or the other).

Hint: Look at who the named defendants are.

Second Hint: Court doesn't care about FTP financial troubles. If they agree with plaintiffs and issue a judgement against FTP that debt is now senior to all other debt and repayment of it takes priority over any junior debt. While FTP may fail and file for bankruptcy protection, having a judgement protects the interest of the plaintiffs and increases the likelihood they are made whole.

Which is why I'm surprised by all the "Bravo!" reponses

Antonius has nothing to do with this mess. He just wants to teach tennis.

Do you folks really think that anybody is going to invest any significant money in full tilt? If the answer is yes, then I have a bridge to sell you. Maybe if you had a few hundred million to throw out the window. There are lawsuits - both criminal and civil and this is just the start of the lawsuits. Nobody in their right mind is going to want to throw a **** load of money into a company that has so much uncertainty regarding it business. Even if everything got worked out, all they would be buying is the full tilt name. Do you really think that is worth much right now or even after everything gets worked out? If I'm a new player, am I going to play at Full Tilt or Pokerstars? They would be better off starting a new company and spending the money on marketing.

Face it Full Tilt is on tilt ---R.I.P.

These lawsuits will further drain FTP. The site is shutdown, no money is generated from rake. Expenses including per diem high-powered lawyers dealing with the DOJ, employees and executives salaries to feed their families, potential liabilities to the DOJ and lawsuits such as these.



Wonder how many more days that FTP can take where it does not make a single penny and paying out the nose for all sorts of things.

And to all the rest saying this lawsuit is a bad thing...this lawsuit is irrelevant to the sale of FTP. This lawsuit goes away if FTP is sold and the new owners pay players, how hard is that to figure out? It isn't rocket science people. Also these type of lawsuits aren't just drawn up overnight, most likely this has been in the works for weeks to months, long before FTP sale was ever even known to be a possibility to the public.

That's what I thought, because they base their entire case on asserting FT's illegal activities.

OK - it looks genuine, but practically irrelevant for now.

Having cash flow problems and having zero assets are two completely different things. If this sale doesn't go through and FTP loses the judgement, they would be forced to liquidate all assets until the judgement is settled. FTP still has plenty of value with software, Rush Poker, etc. Maybe not $150 million worth, but there's definitely value left.

*grunching*
Is this one of those things where everyone will get an equal share, regardless of how much they are owed and then the lawyers make a huge profit?

This guys sued the wrong people. They should have sued the DOJ. The DOJ seized the U.S. funds and is demanding $3 billion. It has already been ruled the US is in violation of world trade laws in the Antigua case. THE DOJ failed to give players warning of their actions and failed to give FTP warning. THE DOJ failed to release $150 million to pay off the players.

Instead the DOJ complains about the rake they charge.

yeah any person investing in full tilt is smart enough to know this law suit is irrelevant if the deal involves paying out us players.

What part of "this whole lawsuit will go away if FTP is bought and players are paid" do you guys not understand? LMAO at the post about this lawsuit draining FTPs assets more.

Agreed. I think this is fantastic. People saying "but the investors are just about to sort everything out for us" are somewhat blinded by their desperation to get their money back imo. Don't forget it's your money, FTP owe it to you in every sense of the word. If I didn't pay back a debt to my bank for months, do you think they'd accept me saying:

"Rest assured your funds are secure with me. I have several potential opportunities on the horizon in the near future. Please try again later.

Yours sincerely,


Rangey Repayments Customer Relations Team
Merging Hope and Trust into Funds"

Hell no. They'd use the methods permitted by law to regain what they are entitled to, the money I owe them.

The DOJ seized nothing. So rest of your post if FAIL.

Its states that ftp was capable of paying us players but didnt wish to do so...?