Daniel Tzvetkoff, an online payment processor who was associated with major online poker sites such as PokerStars and Full Tilt Poker, was served prison time in a New York federal court. He was found guilty of operating Intabill, which processed funds related to gambling activities at the above-mentioned online poker rooms.
Tzvetkoff, with the assistance of Sam Sciacca, an Australian lawyer, founded Intabill 21 years ago. However, the firm’s fall was just as quick as its rise, chiefly because of Tzvetkoff’s lavish lifestyle and inability to keep accounts properly. Ultimately, Intabill found itself owing $80 million to various online poker sites, $40 million of which it owed to Full Tilt Poker, which dragged Tzvetkoff to court after his company collapsed.
In April 2010, Tzvetkoff was arrested at an electronic processing conference that was being held in Las Vegas. When he was awaiting trial, he revealed a lot of information about the way major online poker rooms in the US processed their funds while dodging the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006.
At that time, Tzvetkoff could have got as many as 75 years in jail for money laundering, bank fraud, and operating an illegal gaming business. He would also have had to face some more months in the custody of the feds as, according to the law, he would have to be sentenced to anywhere between six and twelve months for the nature of the crimes he had committed. But he escaped prison time as Judge Lewis A. Kaplan ruled that the four months he had already spent in federal custody was ample punishment for him as he had co-operated with the federal government. In addition, Tzvetkoff has to forfeit $13 million, which he got from Intabill in 2008 – 09, when the company was very successful.
Widely known as the man who caused Black Friday, Tzvetkoff helped federal law-enforcement agencies get enough evidence against Full Tilt Poker and PokerStars. Three of his associates—Curtis Pope, Andrew Thornbill, and John Scott Clark—were arrested in Dec 2009.
Tzvetkoff plans to go back to Australia soon as he has secured employment as the chief technical officer of a “responsible company,” as his legal representative puts it. Tzvetkoff says that he had done some work for Bruce Mathieson, an Australian entrepreneur, after 2006. In 2009, Matheison launched an online payment processing company in Australia, but wisely stayed away from the US online poker market.