SAN ANTONIO - A payment processing company based right here in San Antonio has agreed to hand over more than $6 million in a settlement related to proceeds from online poker.
The New York Post reports LST Financial is forfeiting $6.27 million after a nationwide crackdown on internet gambling. LST reportedly moved money tied to three illegal gambling websites. In federal court papers the company admitted no wrongdoing.
As part of the settlement, the U.S. government will return other funds held in LST Financial's accounts that weren't derived from online gambling.
"LST is gratified that the government agreed to return assets unrelated to the PokerStars activities," said Michael Bachner, a lawyer for LST Financial.
Prosecutors had alleged that LST Financial processed payments for a company 50% owned by Ryan Lang, who pleaded guilty to criminal charges earlier this year and admitted he helped PokerStars and other online poker companies secretly process payments from players.
Eleven people were charged criminally last year as part of a crackdown by the U.S. government on online gambling, including the founders of three of the largest online poker companies operating in the U.S. at the time. Separate civil cases were filed against the companies.
The poker companies--Absolute Poker, PokerStars and Full Tilt Poker -- have stopped serving U.S. customers.
The Wall Street Journal, citing a person familiar with the matter, reported in April that PokerStars was in negotiations to acquire Full Tilt Poker as part of a deal that would resolve its legal disputes with the U.S. government.
Full Tilt Poker's Chief Executive Ray Bitar was arrested last week at John F. Kennedy International Airport and is facing new charges related to an alleged Ponzi scheme at the company. Mr. Bitar has pleaded not guilty to the charges.