Below is a chronology of statements released by Absolute Poker, Ultimate Bet, Tokwiro Enterprises, the KGC, and other related parties in regard to the crimes committed and the coverup orchestrated by Absolute Poker, UltimateBet, Tokwiro Enterprises, the KGC, and other related parties.
I did not want to turn this post into a complete time line of events but needless to say, every single instance where AP/UB/Tokwiro changed their statements and divulged more information had been immediately preceded by new evidence being posted on twoplustwo.
Absolute Poker: we have no evidence that substantiates claims that any of the players were involved in chip dumping, or any other improper activity.
September 17th, 2007
Quote:
Hi All,
Thank you for your patience in this urgent issue.
Let me start off by stating in 100% confidence that, fair play and security is of paramount importance to Absolute Poker. We have temporarily frozen accounts that have been brought to our attention while we perform an extensive investigation.
While we are continuing with our investigation, we have yet to find any evidence of wrong doing. Our game client only receives data regarding the individuals hand and no other players hole cards, except in the event of a showdown.
The player’s and their respective actions that are in question, all come from a small sample of Hands. We have researched their play exhaustively and have found no proof that they had any knowledge of other player’s hole cards.
There were hands that were played poorly -- from a poker strategy perspective -- and these players did receive a fortunate result. So far we have no evidence that substantiates claims that any of the players were involved in chip dumping, or any other improper activity.
Because of the seriousness of these allegations, we have not closed the investigation and are continuing to look very closely into this matter.We will notify you if we obtain any new information regarding these claims.
Kindest Regards, Danielle
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Absolute Poker: We performed an extensive investigation, no evidence of compromised security, no evidence anyone could see hole cards. A ‘super-user’ account does not exist in our software.
October 12th, 2007
Quote:
Official Absolute Poker Response To Player Fraud Allegations
Absolute Poker takes all allegations of player fraud and collusion extremely seriously. Fair play and security are of paramount importance to us. Our Security and Fraud Department is dedicated to ensuring that everyone on the site has a fair opportunity to win, and that no improper methods, devices, programs and/or other unfair advantages are ever utilized in our games.
We were greatly concerned by a recent thread on the 2+2 forums along with emails and other communications we received, regarding alleged player fraud. We thank the vigilant players who reported this matter to us, giving us an opportunity to investigate these serious allegations. We spent extensive resources thoroughly investigating and analyzing our players’ claims. While our investigation is ongoing, we feel that we have enough information at this point to share with you some of our findings.
Please be advised, that we will continue to investigate each and every claim of wrong-doing on an individual basis and we will report any further significant findings that are appropriate for public review. Also, please keep in mind, while we endeavor to provide as much information as possible on a public level, we take our players’ privacy issues very seriously, and will never compromise this. As a matter of Company policy, Absolute Poker never divulges personal information about our players nor do we make public any hand information that did not go to a showdown, ever. As a result, we are limited in terms of the level of information that we can provide for public review.
In response to the allegations, we froze the accounts of the players in question while we performed an extensive investigation. The result of our investigation is that we found no evidence that any of Absolute Poker’s redundant and varying levels of game client security were compromised. In other words, we have determined with reasonable certainty that it is impossible for any player or employee to see hole cards as was alleged. There is no part of the technology that allows for a “superuser” account, and there is no way for any person to influence the game software to their advantage. We base this finding on a thorough security check on a technological level, coupled with a thorough investigation of hand histories including those that did not go to a showdown. As a part of our investigation, we also tested the integrity of our certified random number generator (“RNG”.) We determined that our RNG was not compromised either.
Details of the investigation
We combed through all hands involving the accounts that were mentioned in the online forums. Please note that only a select number of hands were featured in the threads. Our ongoing investigation continues to show that there were countless instances where a somewhat unorthodox poker strategy resulted in a loss. Allegations that the player accounts at issue “always guessed right” are unfounded.
We examined screen shots from Poker Tracker Software that displayed an “infinite” river aggression factor for one of the player accounts at issue. We examined similar screen shots which showed a lower but still relatively high river aggression factor. We were very concerned by this anomaly. Accordingly, we reviewed each and every hand that this player played during the relevant time period and determined that while the play was extremely aggressive, particularly on the river, there were several instances where the player merely called on the river. Thus, the allegation that the player accounts at issue “never called on the river, they either raised or folded” are also without merit.
With respect to the allegation of chip dumping, we have determined that chip dumping by at least one of the accounts at issue, did in fact, take place. We have determined that the chip dumping was made to several seemingly unrelated accounts. We are continuing to investigate this issue.
Conclusion
A ‘super-user’ account does not exist in our software. Absolute Poker was created by poker players who value security and fair play. The back-end of the Absolute Poker software prevents the possibility of any such feature. Our game client only receives data regarding an individual’s hand and no other player hole cards are ever visible – by anyone – except in the event of a showdown. Having said that, we will continue this investigation as well as look into any other allegations of wrong-doing. If appropriate, we will freeze funds and reimburse effected players.
Absolute Poker remains a 100% secure place to play. We value all of our players and we will continue to provide our community with a safe, secure and exciting online poker experience.
The Absolute Poker Management
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Note: within 24 hours of the 10/12/07 press release the PotRipper hand history was posted proving the entire previous press release to be a deliberate lie
Video of PotRipper tournament with hole cards exposed (1/4)
Video of PotRipper tournament with hole cards exposed (2/4)
Video of PotRipper tournament with hole cards exposed (3/4)
Video of PotRipper tournament with hole cards exposed (4/4)
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Absolute Poker: We have done extensive research, we are continuing to do a thorough and exhaustive investigation, we have yet to find any evidence of wrong doing. There are no "superuser" accounts that enable players to see other players' hole cards.
October 15th, 2007
Quote:
Thank you for your email and please let us apologize for the delay in our response; even though we always try to answer all the emails that we receive as soon as possible, sometimes it could take a little bit longer to answer them depending on the amount of inquiries that we receive.
Allow us to kindly inform you that we have done an extensive research into the claims that have been brought to our attention. While we are continuing to do a thorough and exhaustive investigation, we have yet to find any evidence of wrong doing.
When you are logged in and playing your game client only receives data regarding your hole cards. As a result, it is impossible for a player to have information regarding any other player's hole cards. There are no "superuser" accounts that enable players to see other players' hole cards.
Despite our confidence in the security of our systems, we researched hands involving accounts that were mentioned in the online forum posts over the weekend and did not find any incidence of cheating by the accounts in question. Results mentioned in the forums were over a small sample of hands, and we have researched these hands as well as numerous other hands involving these players and have found that the pattern of play of the players did not lend credibility to the claim that the players knew the cards of other players at the table. Certainly there were hands that were played poorly, from a poker strategy perspective, and where these players received a fortunate result. However, a longer term review has shown that similar playing strategies have not resulted in the same results as these players achieved in the small sample of hands mentioned in the online discussion.
Furthermore, the play of the players in question did not substantiate claims that they were involved in chip dumping, or any other improper activity.
We take these matters very seriously, and stand by the results of our random number generator and game client security. Because of the seriousness of these allegations, we have not closed the investigation and are continuing to look very closely into this matter.
Should you have any further questions, please feel free to let me know and we will be happy to assist.
Thanks for playing at Absolute Poker! If there is anything else we can help you with, please let us know. We are here for you!
Sincerely,
Pamela
Team Absolute ~ Customer Support
"To Continue to be the Best and Most Trusted"
Support@AbsolutePoker.Com
We’re Here To Stay! All Players Welcome!
Come and join the action this weekend with our 150k guaranteed on Saturday and 60k on Sunday! With more and bigger guaranteed tournaments, Absolute Poker is your place to play. See you at the tables whenever, wherever!
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Absolute Poker: We investigated and found no wrongdoing. We agree to hire independent Gaming Associates to conduct an audit. We reserve the rights to pursue legal action against anyone who says anything bad about us
October 17th, 2007
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AP Agrees to Independent Audit
Absolute Poker Management wishes to inform the poker community of the following information in response to the most recent claims posted over the past 48 hours on the 2+2 and Pocket Fives forums wherein again it is alleged that some person or persons breached Absolute Poker’s redundant and varying levels of game client security. As was stated in Absolute Poker’s Official Response released on Friday October 12, 2007, Absolute Poker conducted an extensive investigation in response to the claims it was made aware of and received. The results of that investigation indicated that to the best of Absolute Poker’s knowledge, information and belief there was no security breach. Specifically, Absolute Poker’s internal investigation determined that it is impossible for any person, device, program, script or other means to see hole cards.
Based on the most recent claims that Absolute Poker has been made aware of and at the request of some of our players and business partners, Absolute Poker has agreed to retain a widely acclaimed independent third party auditor, Gaming Associates, to conduct an independent audit of Absolute Poker’s security systems. Specifically, Absolute Poker has requested that Gaming Associates conduct a thorough and extensive review of Absolute Poker’s practices and security system’s to determine whether it is possible for any person, device, program, script or other means to see hole cards thereby gaining an unfair advantage.
Absolute Poker has agreed to fully cooperate with Gaming Associates and its investigative team and to provide the above with unfettered access to all systems, protocols and databases at Absolute Poker worldwide. Absolute Poker has also agreed to allow Gaming Associate’s final report to be made available to Pocket Fives and Bluff Media for their review.
With respect to the claims that Scott Tom, a former member of Team Absolute Poker, is in anyway involved in wrong-doing, Absolute Poker has requested a formal investigation into that matter as well. Mr. Tom has not been involved with Absolute Poker for over a year and to the best of our knowledge, information and belief has not had access to any of Absolute Poker’s systems, databases or information.
Absolute Poker reserves the right to pursue any and all remedies, including both legal and equitable which may inure to it as a result of any unlawful and/or injurious actions taken by any individuals who may have falsified any information, documents, files, or have by other means attempted to disparage and/or harm Absolute Poker, its players, management, employees, business partners or affiliates.
Absolute Poker shall bear all expenses related to such investigation and is eager to learn about Gaming Associate’s findings. Absolute Poker highly values and intends to protect its players, shareholders, business partners, and affiliates.
Absolute Poker Management
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KGC: We have appointed experts to conduct a thorough audit of all circumstances, provide findings and recommendations to the Commission.
10/17/07
Quote:
KGC To Investigate Absolute Poker
The Kahnawake Gaming Commission (KGC) announced today an audit into the current and historic activities of Absolute Poker and interaction with its gaming and financial systems. As a KGC licence holder Absolute Poker is obliged to adhere to the Regulations Concerning Interactive Gaming.
Absolute Poker has agreed to fully cooperate with the KGC and / or its agents.
Mr David Montour, the Commission’s Chairman, said, “This week allegations of impropriety have been bought to the attention of the Kahnawá:ke Gaming Commission. We have appointed experts to conduct a thorough audit of all circumstances, provide findings and recommendations to the Commission. The audit will not be restricted to examining theories circulating in Internet chat rooms and fora”.
The Commission has instructed Gaming Associates to conduct the audit and report to the Commission. Gaming Associates is acknowledged world wide as an expert interactive gaming test and audit house – accredited by regulators worldwide. Gaming Associates’ consultants are pioneers in interactive gaming regulation - recognized as experts in this field since the 1990s, and information security experts.
“It is essential that all online gaming and wagering is conducted in a fair and honest manner where customers are protected. The Kahnawá:ke Gaming Commission is committed to ensuring fair and honest gaming. Nevertheless, it is important that we, as a Commission, act on findings and not allegations alone.” Click HERE to view official press release.
Mohawk Territory of Kahnawake 17 October, 2007
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Absolute Poker: Absolute Poker has identified an internal security breach that compromised our systems for a limited period of time
October 19th, 2007
Quote:
Dear valued player,
Absolute Poker has identified an internal security breach that compromised our systems for a limited period of time. The cause of the breach has been determined and completely resolved. In addition, all necessary resources, both internal and external, have been engaged to ensure this does not happen again. Our investigation is not fully concluded, and we wish to thank the extended poker community for any and all assistance related to the matter.
Game integrity has always and continues to be of the utmost importance at Absolute Poker. The Management of Absolute Poker is appalled by these findings, and is committed to our players and to the integrity of our site and the online poker industry.
All players affected by the security breach will be identified during the audit process that has been initiated and all funds, including interest, will be returned. Absolute Poker would like to apologize for the recent events and is committed to diligently working with outside security firms, auditing firms, the extended poker community and the Kahnawake Gaming Commission to ensure the situation is entirely resolved.
A comprehensive statement will be forthcoming shortly providing more details of the situation.
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Chief Joe Tokwiro Norton: I own Absolute Poker. AP should have been been more forthcoming in providing a timely or comprehensive explanation. AP was compromised by a high ranking consultant. In addition to our own investigation and the audit by Gaming Associates, we have also submitted to an audit by the KGC. I promise to keep you updated
October 21st, 2007
Quote:
Dear AP Player:
I am the former Grand Chief of the Mohawk Territory of Kahnawake and the owner of Tokwiro Enterprises ENRG, which holds a 100% interest in Absolute Poker.
As many of our players are aware, there has been a security breach in our system that allowed unlawful access to player information that resulted in unfair play. I am writing to you today to let you know what we know so far in order to set the record straight, and to assure you of AP’s commitment to player security. I am sure that this letter will not address all of the questions and concerns you may have, nor will it extinguish the heated discussion surrounding this issue. At this point, our intention is to let you know all we can disclose and to assure you of our continued efforts to keep you informed as best we can as the investigations continue.
We deeply regret this situation has occurred. A breach in security in online poker is serious and of great concern to players and the industry worldwide, and this particular situation has been the subject of debate within the poker player community and in the media, giving rise to the creation of several websites and hundreds and hundreds of comments, opinions, and theories of what occurred – some of which are accurate, and some that are not.
Like you, I have not been happy that during the initial stage of our investigation, AP has not been more forthcoming in providing a timely or comprehensive explanation on this matter, giving rise to anger, suspicion, and concern on the part of our valued customers. I hope that our customers can appreciate that this remains an incredibly complex and sensitive issue, and I want to give you my strongest possible assurance that we will be as forthcoming as possible on how this breach occurred and what we are doing to remedy the situation.
What We Know and Actions We Have Taken
AP was notified by a customer that a possible cheating incident occurred during a recent tournament, and in response forwarded players’ hand logs. This disclosure of the hand logs prompted our customers to determine that a more serious security breach had occurred. We immediately launched an internal investigation and also requested a formal audit by Gaming Associates, an acknowledged world-wide expert in audits, interactive gaming tests, and information security.
Based upon our preliminary findings, it appears that the integrity of our poker system was compromised by a high-ranking trusted consultant employed by AP whose position gave him extraordinary access to certain security systems. As has been speculated in several online forums, this consultant devised a sophisticated scheme to manipulate internal systems to access third-party computers and accounts to view hole cards of other customers during play without their knowledge. As this consultant was aware of the details of our fraud detection process, the likelihood that the scheme would be uncovered through our normal procedures was minimized. We consider this security breach to be a horrendous and inexcusable offense.
We will pay for all losses suffered by the affected players as soon as our audit is finished and the amounts are determined. Although we are in the process of attempting to recover all the winnings of this consultant, any unrecovered losses of affected players will be paid by Absolute Poker so that all affected persons will be made whole.
Next Steps
We are still investigating whether the consultant was acting alone or in concert with others, and it appears at this time that all account holders are innocent of collusion and were unaware of any wrong-doing by the consultant, who was immediately terminated. We continue to investigate this matter aggressively, and all of these preliminary findings are subject to the audits currently underway. We have recently uncovered additional accounts used by the consultant that have not been publicly reported. So as to not compromise the investigation, we are not releasing the names of these additional accounts at this time, and will contact these affected customers individually.
The specific allegations of unlawful activity are being investigated both by AP and by the authorized authorities, including the Kahnawake Gaming Commission. We will continue to actively cooperate with these authorities in full compliance with the Regulations Concerning Interactive Gaming. In addition to our own investigation and the audit by Gaming Associates, we have also submitted to an audit by the Kahnawake Gaming Commission.
Please be assured that we have corrected the problem that allowed the system to be unfairly manipulated. We are working furiously to increase the safeguards within our systems. While we are satisfied that our systems are secured, we realize that our security systems must be continuously monitored and enhanced.
Without question, this incident has been unfortunate for all concerned, and we will emerge as a stronger company. I realize it will take some time and much more information for AP to re-earn the trust and confidence of our customers who are in doubt of our commitment to the highest levels of security, privacy and integrity. As we move to address and correct this situation, our valued customers have played a vital role in uncovering this scheme through various online forums and have become an active part of the solution.
With my full sincerity, I thank you, and I promise to keep you updated as we bring this situation to a close.
Sincerely,
Joe Norton
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Absolute Poker: AP was the victim of a breach of security. A high-ranking consultant devised a sophisticated scheme to view the hole cards. AP immediately contacted Gaming Associates and the KGC. AP intends to continue working with third party auditors to ensure game security.
October 24th, 2007
Quote:
Interim Statement
Absolute Poker (AP) today issued the following statement concerning the recent security breach in its system:
Recently, AP was the victim of a breach of security in which a high-ranking consultant to the site devised a sophisticated scheme to manipulate internal systems and access third-party computers and accounts to view the hole cards of other customers during play and without their knowledge, resulting in unfair play. AP deeply regrets that this incident occurred and is committed to taking whatever steps are necessary to ensure the highest levels of security, privacy, trust and integrity throughout its entire system.
Upon learning of the incident, AP immediately contacted Gaming Associates, an independent worldwide expert in audits, interactive gaming tests and information security, to undertake an internal investigation. Immediately thereafter, the Kahnawake Gaming Commission (KGC), AP’s governing licensing authority, opened its own inquiry into the scheme. These investigations are active and on-going. AP is cooperating fully with the KGC investigation.
The Company’s internal investigation is ongoing, and its preliminary findings are subject to the final audit findings. Thus far, the Company’s preliminary findings are as follows:
1. The perpetrator of the scheme was immediately terminated upon discovery and the case was turned over to the KGC.
2. AP has fully corrected the problem that allowed its system to be unfairly manipulated and is working to enhance its existing safeguards.
3. Since the initiation of the internal investigation, the databases have been locked down to ensure the integrity of the auditors’ inquiry.
4. The scope of the audit will not be limited to a certain time period.
5. The suspected period of time of the security breach has been identified. This period is recent and confined to a relatively brief period. The actual dates will be publicly released upon confirmation by the third party auditor.
6. A thorough review of the game play has begun to identify all of the adversely affected players.
7. AP is committed to refunding 100% of the losses incurred by its affected customers. AP has begun the process of reimbursing its customers, and will continue to do so as quickly as possible until all customers are refunded in full.
8. Even after completion of this audit, AP intends to continue working with third party auditors and security firms to ensure that the highest level of game integrity is upheld.
9. AP is instituting strict guidelines to restrict its employees, consultants and contractors and members of their households from playing for money on its sites.
These preliminary findings remain subject to its final audit. AP expects its internal inquiry to last for at least several weeks, and it will continue to cooperate with the KGC’s investigation and to work with Gaming Associates until these outstanding investigations and inquiries are complete. AP will continue to issue interim statements related to its internal investigation as appropriate.
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KGC: The investigation is ongoing...
November 22nd, 2007
Quote:
Absolute Poker active and ongoing investigation
The Kahnawake Gaming Commission's investigation into the Absolute Poker situation is active and on-going. The Commission's agents, Gaming Associates, are in the process of finalizing its audit of AP's operations and will be submitting a report to the Commission of its findings. The Commission will review this report and decide the appropriate course of action. To avoid the possibility of jeopardizing its investigation, the Commission will not comment on this matter until such time as it has reached a decision. The Commission expects to receive a final copy of the audit report by December 7, 2007.
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KGC: Unfair play occurred. The perpetrators could see their opponents hole cards. The Commission has identified the person(s) responsible and has directed that AP take action to have these person(s) removed from playing any role in AP 'mind and management' and/or operations. The Commission is satisfied with the level of cooperation provided by AP management and staff throughout the investigation.
January 11th, 2008 (pdf)
Quote:
In the matter of Absolute Poker Investigation regarding complaints of cheating
Decision
The Kahnawá:ke Gaming Commission (the "Commission") first received complaints concerning this matter on or about October 16th 2007. The essence of the complaints was that one or more persons associated with Absolute Poker ("AP"), while participating in live poker games with players, had been using software that enabled that person or those persons to see the "hole cards" of each of the other players. For the purposes of this decision, the aforementioned activity, and activities necessarily incidental thereto, will be referred to as the "impugned activities".
As a result of the received complaints, the Commission initiated an investigation into AP's operations. The scope of the investigation was broadly defined with the objective of determining whether the impugned activities had occurred and, if so:
? All the facts and circumstances related thereto;
? Whether affected players had been reimbursed for any losses that resulted from the impugned activities;
? Whether AP had breached one or more of the Commission's Regulations concerning Interactive Gaming (the "Regulations") and, if so, the appropriate sanctions that should be applied.
? The appropriate measures that should be implemented to ensure that the impugned activities - or any other improprieties - would not be repeated.
On October 17th 2007, the Commission mandated its approved agent, Gaming Associates, to carry out the necessary inquiries, audits and reviews of AP's systems and personnel. Over the course of approximately 10 weeks Gaming Associates fulfilled its mandate and obtained extensive information from AP's operations in various locations around the world; which it has provided to the commission. Based on this information, the Commission makes the following findings of fact:
1. That commencing on August 14 2007 and thereafter for a period of approximately six weeks, the accounts listed below were used to compromise AP's system by participating in live poker games with players using software that enabled the viewing of the "hole cards" of each of the other players, resulting in unfair play. The Commission has identified the person(s) responsible for the impugned activities and has directed that AP take action to have these person(s) removed from playing any role in AP 'mind and management' and/or operations, and to provide proof, acceptable to the Commission, that this has been done.
GRAYCAT
PAYUP
STEAMROLLER
POTRIPPER
XXCASHMONEYXX also known as SUPERCARD M55
DOUBLEDRAG
RONFALDOXXB also known as ROMNALDO
2. That subsequent to the impugned activities taking place, person(s) associated with AP's operations deleted certain gaming logs and records which had the effect of hampering the Commission's investigation ? but which did not prevent the commission from obtaining sufficient information on which to base finding number 1. Except with respect to these actions, the Commission is satisfied with the level of cooperation provided by AP management and staff throughout the investigation.
3. That there is no evidence to indicate that the impugned activities were authorised or sanctioned by AP as a corporate entity ? either through its Board of Directors or its principal ownership. There is no evidence that the impugned activities benefited, or were intended to benefit, AP as a corporate entity.
4. That the principles of AP failed to contact the Commission within 24 hours after they became aware the impugned activities had occurred.
5. That shortly after the impugned activities became publicly known, AP made expeditious efforts to appropriately reimburse all players who had participated in games in which the impugned activities had occurred, with interest. The Commission is satisfied that affected players have been appropriately reimbursed. However, if any player provides the Commission the evidence that he or she participated in a game in which the impugned activity occurred, and that such player has not been appropriately reimbursed, the Commission will direct AP to appropriately reimburse that player. To be considered, any such complaints from players must be received by the Commission within sixty days of the date of this decision.
6. That AP has taken the appropriate actions to address the vulnerability in its systems that allowed the impugned activities to occur and to prevent its systems from being compromised again by the impugned activities.
In view of these findings of fact, the Commission finds that AP has breached the following sections of the Commission's regulations:
261. A person must not, in relation to an authorised game, dishonestly obtain a benefit by any act, practice or scheme or otherwise dishonestly obtain a benefit through the use of any device, equipment or software.
270. In the event of an Authorised Client Provider, Approved Agent or any other employee or agent of the commission becomes aware, or reasonably suspects that
a) a person, by dishonest or unlawful act affecting the conduct or play of an authorised game, has obtained a benefit for the person or another person; or
b) there has been an unlawful act affecting the conduct or playing of an authorised game;
within twenty four (24) hours of becoming aware of, or suspecting, the dishonest or unlawful act, the person who becomes aware must give the Commission a written notice advising the Commission of all the facts known about the matter.
245. Unless the information previously contained in the gaming record is kept in another way under an approval of the Commission, an Authorised Client Provider must keep a gaming record for five years after the end of the transaction to which the record relates.
275. A person must not obstruct an Inspector in the exercise of a power or someone helping an inspector in the exercise of a power.
As a result of its breaches of its Regulations, the Commission hereby imposes on AP the following sanctions:
1. The Client Provider Authorisation ("CPA") held by AP is hereby amended to include the following conditions:
(a) All aspects of AP's operation will be subject to random audits of logs and records, conducted by the Commission or its approved agents, over the next two years ? the costs of which will be paid by AP. If, as a result of these random audits, the Commission is provided with information indicating that AP has breached any provision of the Kahnawá:ke Gaming Law, the Regulations, the conditions attached to its CPA or any other directions of the Commission, AP's CPA may be suspended or revoked in accordance with the procedures set out in the Regulations.
(b) AP must immediately implement a continuous compliance program, and other related remedial measures, as directed by the Commission.
(c) Those person(s) responsible for the impugned activities to be permanently removed from playing any role in AP ?Mind and Management? and/or operations and proof, satisfactory to Commission, that this has been done.
2. Fine the amount of US $500,000 payable in full within 60 days.
3. Posting of a security deposit of such type and amount that is acceptable to the Commission to be held by the Commission for two years, or such other period of time that the Commission deems necessary, to be used to off-set the cost associated with any future breaches of the Kahnawake Gaming Law, the Regulations, the conditions attached to its CPA or any other directions of the Commission.
4. AP to pay to the Commission all costs associated with the Commission's investigation into this matter, including costs related to the audit conducted by Gaming Associates and any follow-up matters. These costs include any ongoing work that must be performed as a result of the audit and the decision.
ISSUED within the Mohawk Territory of Kahnawake, this 11th day of TsoThohrkowa January, 2008.
KAHNAWÁ:KE GAMING COMMISSION
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Absolute Poker: We recognize the completeness and accuracy of the KGC conclusions. AP has appointed a team of both internal and external members to improve controls and install safeguards. The Company regrets the inadvertent deletion of certain gaming logs. We have taken it upon ourselves to convene on January 18, 2008 the first of a series of ‘poker security summits’.
January 11th, 2008
Quote:
Contact: Anna Molley
Vice President, Public and Community Relations
press@absolutepoker.com
ABSOLUTE POKER RESPONDS TO KGC FINDINGS
(JANUARY 11, 2008) --- Absolute Poker (AP) issued the following statement today in response to the Kahnawake Gaming Commission’s (KGC) release of its report “In the Matter of Absolute Poker Investigation Regarding Complaints of Cheating.”
“When Absolute Poker notified the KGC of the security breach in our system, we had every expectation that the Commission would undertake a comprehensive and fair investigation. After reviewing the published report, we recognize the completeness and accuracy of the KGC conclusions, and we accept without reservation the KGC’s findings and sanctions. Most importantly, we are pleased, after these many months, that Absolute Poker can finally put behind it a most distressing and regrettable experience for the Company, its employees, and its customers.
“The KGC points out that ‘AP has taken the appropriate actions to address the vulnerability in its systems…and to prevent its systems from being compromised again…’ AP has appointed a team of both internal and external members to improve controls and install safeguards, and accepts the audit findings as an opportunity to improve our internal practices and guarantee the safest playing environment in the industry.
“We are pleased that the KGC’s findings of fact point out that ‘there is no evidence to indicate that the impugned activities were initiated or sanctioned by AP…or were intended to benefit AP, as a corporate entity.’ The report also states that ‘AP made expeditious efforts to appropriately reimburse all players…with interest’ who were affected by the cheating.
“The Company also regrets the inadvertent deletion of certain gaming logs and records during the course of the investigation, although AP is relieved that these deletions did not, according to the KGC, ‘prevent the Commission from obtaining sufficient information…’
“Having experienced first-hand the devastating impact of a security breach, we fully appreciate the importance of trust and security for AP itself and the broader industry. A secure site goes to the heart of player confidence, and we are more committed than ever to ensuring that confidence. To that end, we have taken it upon ourselves to convene on January 18, 2008 the first of a series of ‘poker security summits’. AP will invite respected and independent members of the poker community to focus on innovative and cutting-edge ways to further improve AP’s security and enhance its transparency.
“As AP has repeatedly stated in the past, we regret the damage done to our players and to our own reputation by this incident. We acknowledge that the Company did not act with sufficient speed to uncover the fraud; however, once we were convinced of the veracity of the allegations, we moved quickly to inform the KGC and to reimburse affected players. While AP is paying a severe penalty for the fraud perpetrated upon the Company and its customers, we are gratified that we can now close the book on this sordid affair and return our full focus to providing the safest, most secure, and most eenjoyable [SIC] poker playing experience in the industry.”
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On January 8th the thread proving superuser activity at UltimateBet beyond any reasonable doubt was posted in HSNL
January 8th, 2008 - March 5th, 2008: No comments were made by Tokwiro, UltimateBet, or the KGC
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UltimateBet: We immediately launched an extensive inquiry involving an independent third-party expert to review hundreds of thousands of hand histories. After three months, the initial findings of our third-party expert confirm that the NioNio account’s winning statistics were indeed abnormal, and we have expanded the investigation. We continue to aggressively pursue the matter and will communicate the findings of our full investigation to our regulatory authority and to our customer base as soon as practicable
March 6th, 2007
Quote:
Montreal, Canada (March 6, 2008) – UltimateBet (UB), one of the ten largest online Poker cardrooms, today issued the following interim statement with respect to allegations of unfair play on its site.
“On January 12, 2008, UltimateBet was alerted to allegations that a player with the online handle “NioNio” exhibited abnormally high winning statistics and was accused of having an unfair advantage during play. These allegations were made both directly to UltimateBet by concerned players and the KGC, and indirectly through several web forums. The allegations also included reports of suspicious activity concerning the deletion of the NioNio account and other accounts that may have been related to this scheme.
“We immediately launched an extensive inquiry involving an independent third-party expert to review hundreds of thousands of hand histories, all of which were promptly locked down and made available to this expert. The initial findings of our third-party expert confirm that the NioNio account’s winning statistics were indeed abnormal, and we have expanded the investigation to look into whether an unfair advantage existed, how such a scheme might have been perpetrated, and whether additional accounts beyond those of NioNio were involved.
“UltimateBet is in regular communications and contact with its regulatory authority, The Kahnawake Gaming Commission (KGC), and will continue to cooperate fully with that body.
“UltimateBet is determined to complete a full and thorough investigation. We pride ourselves on providing a safe, secure playing environment for our customers. The investigation has proven to be extremely complex and, therefore, has been more extensive and taken much longer than initially expected. We continue to aggressively pursue the matter and will communicate the findings of our full investigation to our regulatory authority and to our customer base as soon as practicable.”
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50 days pass
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Tokwiro: Tokwiro has worked diligently in cooperation with the KGC, and with independent third-party experts. The individuals responsible were found to have worked for the previous ownership of UltimateBet prior to the sale of the business to Tokwiro in October 2006. The investigation confirms that the fraudulent activity took place from March 7, 2006 to December 3, 2007. Priorities were: remove superuser capability, complete investigation, refund customers, implement security measures.
May 29th, 2008
ULTIMATEBET ISSUES STATEMENT REGARDING UNFAIR PLAY
MONTREAL, CANADA (MAY 29, 2008) --- Tokwiro Enterprises ENRG ("Tokwiro"), proprietors of UltimateBet.com ("UltimateBet"), one of the world's largest online card rooms, today announced the results of its lengthy investigation into allegations of unfair play, which was triggered by concerns about an account named 'NioNio'. Tokwiro has worked diligently in cooperation with its regulatory body, the Kahnawake Gaming Commission ("KGC"), and with independent third-party experts to conduct a thorough investigation that included a comprehensive review of hand histories and game data, thorough analyses of software and network security, and audits of its security practices and procedures.
The investigation has concluded that certain player accounts did in fact have an unfair advantage, and that these accounts targeted the highest limit games on the site. The individuals responsible were found to have worked for the previous ownership of UltimateBet prior to the sale of the business to Tokwiro in October 2006. Tokwiro is taking full responsibility for this situation and will immediately begin refunding UltimateBet customers for any losses that were incurred as a result of unfair play.
The fraudulent activity was enabled by unauthorized software code that allowed the perpetrators to obtain hole card information during live play. The existence of this vulnerability was unknown to Tokwiro until February 2008 and existed prior to UltimateBet's acquisition by Tokwiro in October 2006. Our investigation has confirmed that the code was part of a legacy auditing system that was manipulated by the perpetrators. Gaming Associates, independent auditors hired by the KGC, have confirmed that the software code that provided the unfair advantage has been permanently removed.
Throughout the investigation of this incident, Tokwiro's consistent priorities have been:
1. To permanently remove the ability to engage in unfair play;
2. To complete its investigation and come to a full understanding of what occurred;
3. To refund the affected customers; and
4. To implement measures that prevents future incidents.
The Company said, "We would like to thank our customers for their patience, loyalty and support, as well as for their understanding that we are doing everything we can to correct this situation. The staff and management of UltimateBet are fully committed to providing a safe and secure environment for our players, and we want to assure customers of our unwavering resolve to monitor site security with every resource at our disposal."
Investigation Timeline
These are the key events in the course of the incident.
* January 2008: UltimateBet is alerted to suspicions of unfair play on the part of the account "NioNio". Within 24 hours, UltimateBet contacts the KGC to provide formal notice that UltimateBet has initiated an investigation of the incident. UltimateBet subsequently forwarded a copy of all related data to the KGC.
* January 2008: The "NioNio" account and related accounts are suspended pending further investigation.
* February 2008: Preliminary findings indicate abnormally high winning statistics for the suspect accounts. After discussions with the KGC, UltimateBet engages third-party gaming experts to assist with the analysis.
* February 2008: Investigators confirm that the suspect accounts are associated with individuals who had worked for UltimateBet under the previous ownership.
* February 2008: UltimateBet discovers the unauthorized code that allowed the perpetrators to obtain hole card information during live play. The code was part of a legacy auditing system that was manipulated by the perpetrators of the fraud.
* February 2008: UltimateBet immediately removes the unauthorized code and works with the KGC and with third-party auditors to verify that the security hole has been eliminated.
* March 2008: Six player accounts are confirmed to have participated in this scheme. No accounts were deleted at any point, although some account names were changed multiple times. The following account names are known to have been used in the fraudulent activity: NioNio, Sleepless, NoPaddles, nvtease, flatbroke33, ilike2win, UtakeIt2, FlipFlop2, erick456, WhackMe44, RockStarLA, stoned2nite, monizzle, FireNTexas, HeadKase01, LetsPatttty, NYMobser, and WhoWhereWhen.
* May 2008: The investigation confirms that the fraudulent activity took place from March 7, 2006 to December 3, 2007.
* May 2008: Gaming Associates certifies that the software code that enabled unfair play was removed from UltimateBet servers in February of 2008.
* May 2008: Customers affected by this incident are identified, and plans for corrective action are reviewed with the KGC.
Corrective Actions Taken
The following actions have been taken or are currently underway as a direct result of this investigation.
* The security hole identified in UltimateBet's investigation has been permanently eliminated.
* UltimateBet is establishing a state-of-the-art software Security Center that consolidates and greatly enhances existing security capabilities. The first release of the new Security Center focuses solely on the immediate detection of abnormal winnings. Gaming mathematicians, poker professionals, and security software developers have all contributed to the specifications for the new Security Center.
* UltimateBet customers are no longer permitted to change account names unless they have suffered abuse in chat rooms. Requests for changes must be supported by proof of abuse and must be approved by the Chief Compliance Officer.
* In addition to its existing security department, UltimateBet has established a new specialized Poker Security team of professionals dedicated to fraud prevention.
* The refund process will begin immediately. The accounts associated with fraudulent activity did not use an unfair advantage in all play sessions. Regardless, UltimateBet is refunding all losses to these accounts.
* Accounts related to the fraudulent activity have been disabled, and the individuals associated with those accounts permanently banned from the site.
* UltimateBet has worked closely and transparently with its governing body, the KGC and its designated expert auditors, to determine exactly what happened, how it happened, and who was involved, and has taken action to prevent any possibility of this situation recurring.
* Tokwiro is pursuing its legal options in regard to this incident.
For further inquiries please contract
press@ultimatebet.com [/quote]
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UB COO Paul Leggett: The investigation was comprehensive. The KGC and Gaming Associates both reviewed our press release before it came out. Cheating took place from Mar 06 to Dec 07. The perpetrators of that cheating were individuals employed by the previous ownership of UltimateBet prior to Tokwiro acquiring it in October of 2006.
une 3rd, 2008: Pokercast Radio Show with UB COO Paul Leggett
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UltimateBet: UltimateBet began the process of issuing refunds to affected players. We are confident that we have uncovered the majority of the usernames involved in the fraud and processed the corresponding refunds. We expect to have the investigation concluded by June 30, 2008.
June 5, 2008
Quote:
Status Update on NioNio Investigation, and on Refunds to Players
June 5, 2008 - As announced previously, UltimateBet began the process of issuing refunds to affected players on May 29, 2008. Since then, we have continued to investigate additional accounts and data surrounding the unfair play. We have also received inquiries from our customers for a few accounts that we have included in our investigation.
We are confident that we have uncovered the majority of the usernames involved in the fraud and processed the corresponding refunds. However, we are currently analyzing data for additional usernames that appear to have suspicious activity.
If we determine that these usernames were in fact part of the scheme, we will refund the net losses incurred by any customers who played against them.
We expect to have the investigation concluded by June 30, 2008.
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Annie Duke: UltimateBet “handled this particular issue not only with grace and integrity... management stepped up to the plate in a way that they actually didn’t have to
June 27th, 2008: Video interview
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UltimateBet: The cheating began in January 2005. 14 new usernames have been identified. There are no new perpetrators involved, only new usernames. Tokwiro considers itself be a victim.
July 8, 2008
Quote:
UltimateBet’s continuing investigation has confirmed that other usernames, in addition to those previously identified on this site, were associated with the cheating scandal.
The additional usernames include: Crackcorn55, GrabBag123, gravitation, Bgroup, H_Curtis, Twenty 1, WacoManiac, Broke_In_L_A, ShaqTack, BlueBerry101, 55WasHere, Xnomas, dannyboy55, Indy05. The same perpetrators we had previously identified controlled all of these usernames; there are no new perpetrators involved, only new usernames.
We have also confirmed that the cheating dates back further then we initially believed. We can now confirm that the cheating began in January 2005, long before Tokwiro Enterprises ENRG acquired UltimateBet from the previous ownership.
Tokwiro regrets that we did not discover this scheme during our due diligence when we purchased UltimateBet in October 2006, and that we did not identify the fraudulent activity until this recent investigation. We remain committed to our players, and to resolving this problem completely. We will start refunding players for any net losses in hands played with the usernames listed above once we complete our investigation.
Tokwiro considers itself to have been a victim of this fraud and we are continuing to explore our legal options. As part of this effort, we are compiling all of the information we have gathered in regard to the perpetrators and their activities, for possible use in any legal action.
We will continue to provide updates on our investigation, as we are still looking at a few accounts. We would like to take this opportunity to thank the poker community for their invaluable contributions to this investigation and remind them that we remain committed to fully examining any claims of fraud that we receive.
If you have any questions or concerns regarding this investigation, please contact us at pokersecurity@ultimatebet.com
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KGC: The KGC has appointed Frank Catania to be an independent monitor to investigate the KGC Licensee, Tokwiro Enterprises. The Independent Monitoring Team will be given the task of completing a full forensic audit/investigation of the online gaming business of both licensed entities. In the event that any criminal activity is found to have occurred, such activity will be reported to the appropriate authorities for possible prosecution. Tokwiro Enterprises has agreed to comply fully and submit to this independent monitor.
July 28, 2008
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KAHNAWA:KE GAMING COMMISSION APPOINTS INDEPENDENT MONITORING-INVESTIGATION TEAM
Effective immediately, the Kahnawa:ke Gaming Commission (KGC) has appointed an independent monitor to investigate the KGC Licensee, Tokwiro Ent., parent company of both Absolute Poker and Ultimate Bet, led by former New Jersey State Gaming Regulator, Frank Catania.
Mr. Catania is a former Director of the New Jersey Division of Gaming Enforcement (DGE), the regulatory and enforcement agency responsible for maintaining integrity and trust in all Atlantic City gaming operations. As division director, he was a driving force in updating the New Jersey Casino Control Act by fine tuning the balance between regulatory necessity and economic stewardship. After leaving the DGE, he served as the vice president in charge of compliance for Players International, Inc. where he was instrumental in resolving compliance issues the company had encountered in the State of Louisiana, prior to his appointment. He is a principal in Catania Gaming Consultants and the Law Offices of Catania & Associates LLC
The Independent Monitoring Team will be given the task of completing a full forensic audit/investigation of the online gaming business of both licensed entities. The main purpose of the investigation is to ensure that the games offered to the public are fair and honest and that all player protections as required by the Kahnawa:ke Gaming Regulations are being complied with, without exception. The monitoring team will also be charged with verification that all those involved in the fraudulent activities in any manner, no matter how slight, have been or are removed from the licensee company and verify that Ultimate Bet and Absolute Poker have submitted to full compliance with the directives issued by the KGC and recommended by the independent monitor.
Furthermore, Mr. Catania's team will be empowered by the KGC to have full access to interview all employees, past or present, review all records, contact and interview all sub contractors and individuals whom the monitoring team believes necessary. Any failure by the licensees could result in immediate revocation of their license privileges with the KGC. In the event that any criminal activity is found to have occurred, such activity will be reported to the appropriate authorities for possible prosecution.
KGC License Holder, Tokwiro Enterprises has agreed to comply fully and submit to this independent monitor.
KGC Chairman, Dean Montour adds, "While the ongoing investigative process has dominated the attention of the KGC in recent months, we are fully confident in the ability of the Independent Monitoring Team to deliver results and assist the Commission in bringing this matter to a decisive conclusion."
As per the terms of the monitoring agreement, and at the conclusion of the process, the KGC will review the report of the monitoring team and enter the results into their final considerations at the time of ruling in the Ultimate Bet and Absolute Poker investigations.
Murray Marshall
Senior Advisor
Kahnawa:ke Gaming Commission
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Tokwiro: The investigation is concluded. Tokwiro has identified a total of 19 accounts and 88 associated usernames that were involved in the cheating. There are no new perpetrators involved, only new usernames. The cheaters used an account that had the ability to view hole cards. No one associated with Tokwiro was involved in the cheating scheme at any point.
July 25th, 2008
Quote:
TOKWIRO CONCLUDES ITS INVESTIGATION INTO UNFAIR PLAY ON ULTIMATEBET SITE
Findings Turned Over to KGC
Refunds to Affected Players Continue
Company Will Pursue All Legal Remedies
MONTREAL, CANADA - (July 25, 2008) - Tokwiro Enterprises ENRG ("Tokwiro"), proprietors of UltimateBet.com ("UB"), one of the ten largest on-line poker cardrooms, today announced that it has concluded the investigation into allegations of unfair play on UB’s web site.
Tokwiro has compiled complete forensic evidence including the IP addresses, devices, transfer and withdrawal histories, and names associated with the player accounts that benefited from illicitly viewing hole card information. The results of Tokwiro's internal investigation have been turned over to the Kahnawake Gaming Commission (KGC) and its auditors, as that regulatory body continues its independent investigation. These results are in addition to the data which Tokwiro has already shared with the KGC.
Tokwiro has identified a total of 19 accounts and 88 associated usernames that were involved in the cheating, including the accounts that were named in Tokwiro's publicly posted investigation updates of May 29, 2008 and July 8, 2008. The same perpetrators that were previously identified controlled all of these usernames. There are no new perpetrators involved, only new usernames. Usernames were changed many times over the course of the cheating scam in an apparent scheme to avoid detection. Our complete list of usernames involved in the cheating scheme has now been turned over to the KGC, and the Company does not expect to uncover any additional usernames.
Paul Leggett, Tokwiro's Chief Operating Officer, said, "Make no mistake: our management team is outraged that this cheating occurred on our site through illicit software placed on the UB servers prior to our purchasing UltimateBet. Tokwiro is aggressively pursuing legal avenues of redress in order to protect and compensate our players and the business. Rest assured that we will release more information to the poker community and to the public at large as we enforce our and our players' rights."
"With respect to refunds to the affected players, we are continuing our analysis in order to determine the refund amounts. We will move forward with another round of refunds in the weeks ahead. We thank the poker community for its invaluable contributions to this investigation and assure it that we remain committed to fully investigating any claims of fraud on our site," Mr. Leggett said.
The investigation revealed that the perpetrators logged into the client software, using an account that had the ability to view hole cards. The ability of a specific account to view hole cards was enabled by illicit software that was placed on the UltimateBet servers prior to October 2006, which was before Tokwiro acquired the business.
The account that was used to view hole cards never actually played in a game. Instead, the perpetrators used hole card information gained from logging in with this account while playing on other accounts, which thereby benefited from the cheating. The money won by the accounts that received hole card information was then moved around and off the site in a complex web of player-to-player transfers and withdrawals. This contributed to the complexity of Tokwiro's efforts to uncover the truth.
Mr. Leggett concluded: "We cannot over-emphasize the fact that Tokwiro and its entire management team had no knowledge of the illicit software until it was revealed by our investigation; and no one associated with Tokwiro was involved in the cheating scheme at any point."
