Feeds

AmeriDebt founder jailed in internet gambling dustup

'No longer a game,' judge says

  • alert
  • submit to reddit

High performance access to file storage

House of Cards The case of one-time credit counseling giant AmeriDebt took a turn for the worse this week, as a federal court judge ordered its founder Andris Pukke to jail for contempt of court, the Associated Press reports.

AmeriDebt reached a settlement with the Federal Trade Commission in 2006 to pony up $35m in funds to repay customers defrauded by the company, which claimed to provide credit counseling services to deeply indebted Americans, but which in fact allegedly siphoned off an estimated $170m of customer money.

He only produced $4 mil of the $35 mil - enough for about 300,000 customers - but evidently US District Judge Peter Massitte ran out of patience with the slow pace of repayment. The Judge held Pukke in contempt of court back in March, but gave him more time to come up with the missing money. He accused Pukke of using friends and family to hide money in an internet gambling company, a Belize housing project and a Latvian bank account.

"This is no longer a game," Messitte said to Pukke before the marshals led him off in cuffs. "This is serious business when you have a court order." ®

Burke Hansen, attorney at large, heads a San Francisco law office

High performance access to file storage

More from The Register

next story
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Big Content goes after Kim Dotcom
Six studios sling sueballs at dead download destination
Alphadex fires back at British Gas with overcharging allegation
Brit colo outfit says it paid for 347KVA, has been charged for 1940KVA
Jack the RIPA: Blighty cops ignore law, retain innocents' comms data
Prime minister: Nothing to see here, go about your business
Singapore decides 'three strikes' laws are too intrusive
When even a prurient island nation thinks an idea is dodgy it has problems
Banks slap Olympus with £160 MEEELLION lawsuit
Scandal hit camera maker just can't shake off its past
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Reprieve for Weev: Court disowns AT&T hacker's conviction
Appeals court strikes down landmark sentence
US taxman blows Win XP deadline, must now spend millions on custom support
Gov't IT likened to 'a Model T with a lot of things on top of it'
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.