Chad Elie, one of the 11 people charged by the US Department of Justice (DoJ) for illegal gambling and bank fraud has sued Jeff Ifrah, former attorney for Full Tilt Poker, accusing him of malpractice. Ifrah stands accused of withholding the legal opinion of Akin Gump Strauss Hauer and Feld LLP, a law firm, according to which processing of online poker funds through third parties is illegal. Elie claims that he continued to process poker because this important information was withheld from him.
Chad Elie, who had pleaded guilty to the charges against him in March 2012, is now serving five months in a California prison. His legal representative Sigal Chattah filed the lawsuit on April 11, 2013 in a Nevada district court.
Elie’s complaint states, “Once indicted as part of the Black Friday Indictments, throughout the course of discovery with the US Attorney’s Office, Elie discovered the gruesome truth that his own lawyer, Defendant, misrepresented him; That Ifrah hid critical documentation that had said documentation been disclosed to Mr. Elie, Mr. Elie would have never continued to process poker.”
Elie’s 22-page-long complaint further states that Ifrah used his esteem and position in the online gambling industry to “further his own economic endeavors insofar as to give Mr. Elie, Full Tilt Poker, and PokerStars” and then pretended he was not involved when he supplied information regarding his clients to the US Attorney’s Office in New York Southern District.
Chad Elie has accused Ifrah of serving as “a secret government source” when the DoJ investigated the events of Black Friday, of misrepresenting him in the case between Partner Weekly LLC and his own company Viable Marketing Corp, of coordinating payment processing done by SunFirst Bank, Utah to get his fees, and so on. Elie has also claimed that Ifrah and his legal firm have received more than $4,000,000 in commissions and fees from him.
The complainant has concluded by seeking relief for professional malpractice, breach of contract, intentional misrepresentation, breach of covenant of good faith, civil action for damages caused by racketeering, civil conspiracy, and piercing corporate veils. In all, Chad has made eight claims of relief.
Elie, who is currently serving five months in a California federal prison, will be released this June. He posted a tweet on Jan 23, saying that he wants to take part in WSOP 2013 as soon as he is released. Meanwhile, Ifrah has not yet made a response.