Cory Zeidman, a well-known professional poker player and winner of a WSOP 2021 bracelet, has admitted guilt in a long-running fraudulent sports betting operation that deceived bettors for over 16 years. Zeidman and his accomplices reportedly used national radio advertisements to reach countless potential victims and lure them into their scheme.
Promises of Insider Information Fueled the Fraudulent Scheme
Zeidman’s group convinced bettors that they had access to insider knowledge, claiming connections to athletes’ physicians, colleges, and broadcasting companies. They alleged they could provide clients with privileged information, including details about unofficial player injuries, biased referees, and even fixed matches. This information was marketed as a way for bettors to gain an edge in sports betting.
Operating under fake names such as Gordon Howard Global and Ray Palmer Group, the organization presented itself as a trustworthy source for reliable betting advice. Over the years, bettors paid the group substantial sums of money, believing they were investing in guaranteed success. However, the only individuals profiting from the operation were Zeidman and his partners.
The Scale of the Scam: $25 Million in Ill-Gotten Gains
The operation, which reportedly defrauded victims of $25 million, avoided directly placing bets on behalf of clients. Instead, they sold supposed “actionable information” that would supposedly ensure betting success. In reality, the promises were baseless, and clients received no actual advantage. This deception persisted for over a decade and a half before authorities intervened.
Facing Justice: Guilty Plea and Potential 20-Year Sentence
Now admitting to his role in the conspiracy, Zeidman has pleaded guilty to charges of conspiracy to commit mail and wire fraud, as well as federal money laundering. The U.S. Attorney’s Office for the Eastern District of New York announced that he could face up to 20 years in prison. In addition to the potential prison time, Zeidman is also required to forfeit and pay restitution totaling $3.6 million.
Statements from Officials on the Case
U.S. Attorney Breon Peace underscored the significance of the guilty plea, warning that those who use false advertising to exploit the public will face justice. Peace stated that gambling presented as an “investment opportunity” is a disinformation tactic the Office will continue to combat relentlessly.
William Walker, Special Agent in Charge at HSI New York, emphasized the public’s right to transparency regarding their financial dealings. Victims of Zeidman’s fraudulent operation were urged to contact Homeland Security Investigations for assistance.
Similarly, Daniel Brubaker, USPIS Inspector in Charge, highlighted the need to investigate individuals who violate federal laws for personal gain. His statement was echoed by Patrick Ryder, NCPD Commissioner, who reinforced the commitment to holding fraudsters accountable as an example to others.
A Cautionary Tale for Bettors
This case serves as a stark reminder of the dangers posed by fraudulent schemes that exploit the allure of “insider information” in gambling. Zeidman’s operation demonstrates how easily false claims can mislead even seasoned bettors, highlighting the importance of verifying the legitimacy of such offers.
Gambling vs Investments and Advertising
Gambling and advertising regulations are essential in maintaining fair industry practices and safeguarding consumers from deceptive promotions. A critical aspect of these regulations is the prohibition against portraying gambling as a viable investment opportunity. Such representations can mislead individuals into believing that gambling offers a reliable path to financial gain, akin to traditional investments. Regulatory bodies, including the U.S. Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC), enforce strict guidelines to prevent such mischaracterizations. Advertisements must clearly communicate the inherent risks of gambling and avoid suggesting guaranteed returns or minimized risks. Non-compliance can result in substantial penalties, including fines and legal action, underscoring the importance of truthful marketing in the gambling sector.
A notable case illustrating the dangers of presenting gambling as an investment involved Stock Generation, an online platform operating in the late 1990s. The company offered shares in fictitious enterprises, promising consistent and substantial returns, and marketed these opportunities as low-risk investments. However, the SEC identified Stock Generation’s operations as a classic Ponzi scheme, where returns to earlier investors were paid using funds from newer investors. This fraudulent setup led to significant financial losses for participants once the scheme collapsed. The SEC intervened, and legal actions were taken against the operators, highlighting the perils of schemes that disguise gambling activities as legitimate investment opportunities.
Another example is the proliferation of binary options scams in the early 2000s. Binary options are financial instruments that allow investors to speculate on the price movement of assets. Fraudulent operators promoted binary options trading as a straightforward and profitable investment, often guaranteeing high returns with minimal risk. These schemes typically involved high-pressure sales tactics and manipulated trading platforms that rigged outcomes against investors. Victims suffered substantial financial losses, leading to increased regulatory scrutiny. Authorities worldwide, including the FBI and financial regulatory agencies, issued warnings and took enforcement actions against fraudulent binary options firms, emphasizing the importance of skepticism toward investment opportunities that resemble gambling and promise unrealistic returns.
These cases underscore the critical role of regulatory oversight and consumer vigilance in preventing the misrepresentation of gambling as a sound investment strategy. They serve as cautionary tales, highlighting the potential financial devastation that can result from deceptive schemes and the necessity for stringent advertising regulations to protect consumers.
CoinPoker: Pioneering Blockchain Innovation in Online Poker
CoinPoker is reshaping the online poker landscape by integrating blockchain technology and cryptocurrency into its platform. Launched in 2017, CoinPoker has become a favorite among poker enthusiasts who appreciate secure, decentralized gaming experiences. While poker remains its core offering, the platform also provides limited sports betting opportunities, gradually carving a unique niche in the global gambling market.
Redefining Online Poker with Blockchain
CoinPoker began as a platform for casual players offering free poker games. It quickly evolved, introducing real-money gaming options and cryptocurrency integration by 2018. Players can now use Bitcoin, Ethereum, and CoinPoker’s native CHP token to place bets and claim rewards. Built on the Ethereum blockchain, the platform prioritizes user privacy, security, and transparency.
A standout feature of CoinPoker is its blockchain-powered Random Number Generator (RNG), ensuring fairness and tamper-proof gameplay. This innovative technology appeals to players who value reliability and cutting-edge solutions, solidifying CoinPoker’s reputation as a trailblazer in the poker industry.
Transparent Financial Systems for Player Confidence
CoinPoker’s commitment to financial transparency is evident through its Proof of Reserves (PoR) system. This feature ensures that player funds are fully backed and securely segregated from operational assets. Currently, the platform holds $16.75 million in reserves, covering $16 million in player deposits at a robust coverage rate of 105%.
Licensed under Curaçao eGaming, CoinPoker adheres to stringent regulatory standards, providing players with a trustworthy and secure gaming environment.
Championing Fair Play and Responsible Gaming
Fairness and responsible gaming are central to CoinPoker’s mission. The platform’s blockchain-based RNG ensures an equal playing field for all participants, while its anti-fraud measures further bolster trust. A range of responsible gaming tools, such as self-exclusion options, helps players manage their gaming habits. Additionally, a dedicated responsible gaming officer oversees compliance and player welfare.
CoinPoker extends its offerings beyond poker, including competitive sports betting odds. Coupled with its mobile apps for iOS and Android, players can enjoy gaming anytime, anywhere, enhancing convenience and accessibility.
Seamless Crypto Transactions for Speed and Privacy
CoinPoker simplifies cryptocurrency transactions, allowing users to deposit and withdraw funds with ease. By bypassing traditional banking systems, players experience faster, more private transactions. This focus on speed and discretion is particularly appealing to those who value privacy and efficiency in online gaming.
Building a Thriving Community Through Events and Partnerships
Community engagement is a cornerstone of CoinPoker’s strategy. Frequent giveaways, events, and collaborations with poker ambassadors foster a sense of connection among players while amplifying the platform’s visibility.
Noteworthy ambassador milestones include Bobby James placing fifth in the 2024 EPT Cyprus Main Event, securing $271,400. To celebrate, CoinPoker held a special giveaway, further engaging its community. Another ambassador, Patrick Leonard, added to the platform’s achievements by finishing 28th in the same event, winning $26,600. These successes highlight CoinPoker’s ties to top-tier poker talent and underscore its commitment to player engagement.
Merging Poker with Blockchain for a Unique Experience
Although CoinPoker lacks the extensive features of larger platforms, it excels by blending blockchain innovation with the thrill of poker. Its emphasis on privacy, transparency, and fairness offers a refreshing alternative to traditional poker sites.
For players seeking a secure, innovative, and community-driven experience, CoinPoker stands out as a leader in the future of online gaming. Its integration of blockchain technology and cryptocurrency ensures it remains a top choice for poker fans exploring the next frontier in gaming.
Discover CoinPoker today and experience the fusion of modern technology with your favorite card game.
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