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-Lurid Crime Tales-
online poker rip-off - internal cheating by employees
2008-10-01
Detective work by an Australian online poker player has uncovered a $US10 million cheating scandal at two major poker websites and triggered a $US75 million legal claim.

In two separate cases, Michael Josem, from Chatswood, analysed detailed hand history data from Absolute Poker and UltimateBet and uncovered that certain player accounts won money at a rate too fast to be legitimate. His findings led to an internal investigation by the parent company that owns both sites. It found rogue employees had defrauded players over three years via a security hole that allowed the cheats to see other player's secret (or hole) cards.

Now the owners of the sites have filed a $US75 million claim against the makers of the software that powers them, claiming they were unaware of the security holes when they purchased the sites in 2006, MSNBC reported this month.
Suckers at every level ...
Official investigators - brought in following Josem's revelations - have named one of the world's most successful poker players, Russ Hamilton, as the main perpetrator of the fraud.

Suspicions of unfair play at Absolute Poker were first raised late last year. Josem plotted the win rate of several thousand players against the suspicious accounts and found the cheats won money at a rate that was 100 times faster than a good player could reasonably win. The cheating accounts played every hand as if they knew every card that the other players had and folded hands at just the right time.

The findings led to an investigation by the Kahnawake Gaming Commission, which licenses several hundred online casinos and poker rooms. It found Absolute Poker attempted to cover up the cheating by deleting gaming logs and records and fined it $US500,000.

Absolute Poker repaid those who had lost money but refused to release the cheater's identity because a private settlement was reached.

A few months later, Josem and players from the Two Plus Two online poker forum used the same methods to uncover almost identical cheating occurring at Absolute Poker's sister site, UltimateBet. One player account, NioNio, netted a profit of $300,000 in just 3000 hands and won 13 of the 14 sessions recorded on the MyPokerIntel.com website, which tracks high stakes online tournaments.
Posted by:3dc

#5  Hmmmmm, is the phil-t3r off?
Posted by: .5MT   2008-10-01 15:20  

#4   don't know why anyone ever does any sort of gambling online, it's just too easy to cheat.

There. Fixed that for ya. No thanks necessary.
Posted by: Jolutch Mussolini7800   2008-10-01 11:59  

#3  I'm surprised they didn't open an investment bank.
Posted by: Perfesser   2008-10-01 10:11  

#2  And if you can't trust 0nline P0ker, who can you trust?
Posted by: tu3031   2008-10-01 10:02  

#1  Tons more of these, just haven't gotten caught like here. I don't know why anyone ever does any sort of gambling online, it's just too easy to cheat.
Posted by: gromky   2008-10-01 06:29  

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