Fraud in Online Poker Room

A father and son from Texas, U.S., were recently indicted on securities fraud charges after their unsuccessful attempt to launch an online poker room. According to local authorities, Martin Graham Tyson Sr. and his son, Martin Jr., the failed developers, allegedly misled their investors regarding the legality of the venture.

The Tysons currently face multiple claims. Among these claims is their failure to notify their investors regarding the 2006 U.S. ban on online gambling. The U.S. prohibition of online gambling is better known as the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).

The UIGEA prohibits the transfer of real money from a financial institution to an online gambling destination, such as a virtual poker room or casino. Interestingly enough, Larry Dowling, Tysons' attorney, was reported as saying that the online poker room, dubbed LetsPoiker.com, had actually been established before the ban was enacted.

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