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Old 05-31-2012, 03:22 PM   #26
davmcg
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

In British consumer journalism it is standard to go round to directors' offices/houses with a camera and ask for an explanation. Can't one of the poker news sites step up to the plate?
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Old 05-31-2012, 03:25 PM   #27
Press Gang
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Dear Player,

We are sorry to inform you that following a strategic and financial review of the Media Corporation Group it has become clear to the new board that the position of Purple Lounge was no longer tenable due to the historical operational failing and trading losses.

Accordingly, the board are instructing lawyers to apply to the courts to appoint a liquidator to the relevant companies within the group.

For more information, please read the Player FAQ’s or Supplier and Creditor Information.

Regards,

Purple Lounge


just got this
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Old 05-31-2012, 04:11 PM   #28
starvingwriter82
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Here's what I wonder:

Has there ever been a site that's realized it was insolvent and neeeded to close down, and actually paid out its players beforehand?

I mean, it seems to me that "**** everyone on the way out" is pretty much the industry standard.

It really sucks, as I play on a few smaller sites, and it's not my intent to burden them with frequent deposits and withdrawals. But that's what ends up happening, because at this point I assume "oh, and we may shut down without notice and keep all player funds" to be implicit in any online gaming site, and pretty much just a cost of business of playing online.

Not to diminish what PL did - I hope everyone gets their money back and their parent company gets dragged through the mud hard for trying to welch.

It's just a sad state of the industry that your money is only safe until someone else needs it, then it's gone.
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Old 05-31-2012, 04:52 PM   #29
like_the_magazine
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Quote:
Originally Posted by Press Gang View Post
...the historical operational failing and trading losses.
Who are responsible for it?
Who were leading this company (PL not Mediacorp)?
In FTP case we know exactly the names: Bitar, Ferguson etc.
What are the names in this case?
Who knows?
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Old 05-31-2012, 05:18 PM   #30
ValarMorghulis
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Anyone have any contact with a mainstream British journalist? Seems a publicly trading UK company screwing UK (and worldwide) players in this way could get mainstream coverage over there.
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Old 05-31-2012, 05:37 PM   #31
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Quote:
Originally Posted by ValarMorghulis View Post
Anyone have any contact with a mainstream British journalist? Seems a publicly trading UK company screwing UK (and worldwide) players in this way could get mainstream coverage over there.
Problem is I think this would make matters worse as more recreational players would be put off playing and probably wouldn't improve our chances of prosecution :s
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Old 05-31-2012, 05:58 PM   #32
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Quote:
Originally Posted by flash237 View Post
I guess I dont understand how they can break regulations of malta and their own terms and conditions on our money and not have it be fraud. What am I missing here?

Isn't it illegal for them to say they are abiding by malta jurisdiction and then do exactly opposite??

Isn't that the definition of fraud?

Malta required them to have our funds, they didn't/don't. Seems black and white to me.

I realize they aren't under malta anymore but clearly the crime took place while they were or the money would be there still.
xPeru has already explained it very clearly. When you deposit money with a company you become an (unsecured) creditor if it goes bankrupt. You're pretty much at the back of the line when it comes to paying out any monies recovered, only ahead of shareholders. In this case you'll almost certainly get zip. The losses are limited to the company itself. They don't go up the chain to any parent company.

They didn't break any laws in Malta AFAIK. They may have broken the terms of their gaming license - in that case all that might have happened would be their license getting suspended. As long it wasnt illegal under company law then they're fine.
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Old 05-31-2012, 06:04 PM   #33
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

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Originally Posted by DoGGz View Post
What is the point of poker licensing at this point? Nobody gives a **** what their licensees do.
I have allways wondered this. Seems useless
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Old 05-31-2012, 06:38 PM   #34
john_kane
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Quote:
Originally Posted by Masquerade View Post

They didn't break any laws in Malta AFAIK. They may have broken the terms of their gaming license - in that case all that might have happened would be their license getting suspended. As long it wasnt illegal under company law then they're fine.
Is there a case though to say:

- Purple Lounge (the company) stated on their website that they were abiding by the LGA i.e. they were stating to players that their funds were segregated

- The Purple Lounge Directors knew this not to be the case (intentional deception) and were paying themselves salaries despite the company heading into liquidation (personal gain).

Which therefore means they could be convicted for fraudulent trading:

Quote:
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual
Does this stand up from a legal standpoint?
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Old 05-31-2012, 06:50 PM   #35
makelovenotwar
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

it seems a bit ridiculous that as long as you do it under the umbrella of "internet gambling company" licensed by Malta/kawanake/insert random caribean island here you can do whatever da f*** you want and get away with it legally.

I mean this is much better than the usual ponzi scheme where everyone high-up in the scheme does serious prison time.

here's my great poker site, scammenow poker dot com. 300% deposit bonus, 150% rakeback, and i'll pay affiliates 500$ per signup. After I rake in the deposits, I'll employ my uncle, brothers and grandma with a top salary for "consulting services", pay out dividens to owners, spend it all on lobsters and hookers

and then when you suckers want your money back I just declare bankruptcy over the holding company and there's nothing anyone can do. brilliant. not even any legal repercussions.

bernard madoff clearly chose the wrong industry to scam people
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Old 05-31-2012, 06:57 PM   #36
ADK
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

I'm glad I left and cashed out of Purple just in time.
Really scandalous.

Pretty scary how fast this came about out of nowhere, sticking to the biggest sportsbook sites from now on.
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Old 05-31-2012, 07:15 PM   #37
AllBlackDan
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

This is sickening and worrying
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Old 05-31-2012, 07:25 PM   #38
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Not surprising. Feel bad for all players involved.
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Old 05-31-2012, 07:32 PM   #39
0mar Comin
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

https://forumserver.twoplustwo.com/29...91/index9.html

https://forumserver.twoplustwo.com/29...011-a-1132103/

https://forumserver.twoplustwo.com/28...dation-484586/
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Old 05-31-2012, 07:44 PM   #40
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

File it.


“A representation of present fact, not of future intent collateral to, but which was the inducement for the contract, was neither duplicative of a cause of action for breach of contract, (See, Sager v Friedman – 270 N.Y. 472, 479) nor barred merger (See, Danann Realty Corp. v Harris – 5 N.Y.2d 317; See, Citibank v Plapinger – 66 N.Y.2d 90, 94).

In following with this established law, the Court must consider the assurances of segregated funds and guarantees made by Purple Lounge of returning held player funds upon request, including _______ LLC, parent company of Purple Lounge, completely independent of the contract that was eventually breached. The breach of contract, then, is to be scrutinized by the Court seperately, and in addition to the claims of promissory estoppel, fraudelent inducement, fraud, and negligent misrepresentation. "


**NOT legal advice. By visiting twoplustwo.com you hereby release from any fault, liability, etc to any actions you take after reading comments posted, for entertainment purposes only -- by me. Consult an attorney.
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Old 05-31-2012, 08:12 PM   #41
MattEU
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Quote:
Are Purple Lounge players funds safe? They were licensed with the Malta’s LGA but after their move to IGT were no longer under the protection of the LGA and were applying for a licence in a new jurisdiction. Hopefully no one one has done a Full Tilt during the chaos of the changeover.
this site made this post http://www.pokerq4.com/purple-lounge-poker-shut-closed on April 30, 2012

A month or 2 later other sites revealed this startling revelation and blame the lga. Why is the lga to blame?
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Old 05-31-2012, 08:31 PM   #42
Wilco666
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Quote:
Originally Posted by starvingwriter82 View Post
Here's what I wonder:

Has there ever been a site that's realized it was insolvent and neeeded to close down, and actually paid out its players beforehand?
When Bugsy's Club went belly up, players were given the option to transfer their balance to PokerStars. That went pretty smooth. It came with some playthrough requirements, though.

I would assume a significant part of the costs for this solution came out of PokerStars' pockets.
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Old 05-31-2012, 08:47 PM   #43
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Stars did the same to Daniel's site FCP when they started sponsoring him.
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Old 05-31-2012, 09:01 PM   #44
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

I feel bad for anyone who has money stuck in purple lounge, but everyone should have been aware of the problems when they moved from microgaming to the grave yard network that is entraction, compiled with the ridiculous amount of money they were giving away in races/promos to entice people across things were not going to end well.
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Old 05-31-2012, 10:45 PM   #45
markksman
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Quote:
Originally Posted by Silent_0ne View Post
They expect to just ponzi scheme the **** out of the players, then expect to not face any repercussions. civil lawsuit time

To be fair online poker players are by far the easiest group of people to scam and rob. The 85 and up seniors community laughs at online poker.
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Old 06-01-2012, 03:01 AM   #46
uffda
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

Quote:
Originally Posted by MattEU View Post
A month or 2 later other sites revealed this startling revelation and blame the lga. Why is the lga to blame?
Purple Lounge's license was terminated about a month ago. According to LGA regulations, before agreeing to terminate Purple Lounge's license, Purple Lounge would have to present evidence to the LGA that all players had been paid.

Either the LGA did not follow their own rules and request this evidence, or Purple Lounge forged the evidence.

Quite possibly a crime a has been committed here. A few years ago, Malta police actually charged the CEO of an LGA licensed sportsbook, Gold Victory, for misappropriating player funds.
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Old 06-01-2012, 03:02 AM   #47
djz
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

glad i took my money off there and put it on BCP!

they just seemed really ****ty and the software tilted the ****ed out of me but i had an absurd RB deal.

feel really bad for anyone with money still on there, hope it all gets sorted.
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Old 06-01-2012, 04:53 AM   #48
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

I am glad I had a huge losing session the day before they shut down.
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Old 06-01-2012, 06:24 AM   #49
acehole60
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

This is BS. It is shocking that we aren't protected by any law on any site. Even when it's an obvious scam.

I have been waiting for my withdrawal since January/February but they kept putting it off. Something must have been fishy there already (and they knew it).
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Old 06-01-2012, 07:00 AM   #50
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Re: Purple Lounge to be Liquidated, Parent Company Washes Hands of Responsibility to Pay Player

They saw Full Tilt guys stealing hundrends of millions and getting away with that so they decided to do the same. Why not?
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