Statement Regarding UltimateBet Scandal
With the cloud of cheating scandal still hovering over UltimateBet, The Kahnawáke Gaming Commission (KGC) — which licenses both UltimateBet and Absolute Poker — released a statement Wednesday updating its progress on the investigation into UltimateBet, which along with Absolute Poker is owned by Tokwiro Enterprises ENRG. The owner of Tokwiro Enterprises is Joe Norton, former Grand Chief of the Kahnawáke.
The KGC admits in its press release that its actions were not “well communicated to the poker industry or public at large” and says it is attempting to dispel an “incorrect perception” that it was “doing nothing” in the wake of a second cheating scandal within the last year.
The cheating allegations, which surfaced in January, marked the second time in less than a year that a Tokwiro property has had to investigate unfair play at of its poker rooms. In January, the KGC fined Tokwiro’s Absolute Poker $500,000 after it was revealed players with “superuser” accounts that could see hole cards of opponents had cheated. And this past May, UltimateBet’s owners, Tokwiro Enterprises ENRG, admitted UltimateBet’s security had been breached by former employees and accounts with access to opponent’s hole cards were used to cheat in high-stakes games.
“The investigation has concluded that certain player accounts did in fact have an unfair advantage, and that these accounts targeted the highest limit games on the site,” UltimateBet said in a statement. “The individuals responsible were found to have worked for the previous ownership of UltimateBet prior to the sale of the business to Tokwiro in October 2006. Tokwiro is taking full responsibility for this situation and will immediately begin refunding UltimateBet customers for any losses that were incurred as a result of unfair play. “The fraudulent activity was enabled by unauthorized software code that allowed the perpetrators to obtain hole card information during live play. The existence of this vulnerability was unknown to Tokwiro until February 2008 and existed prior to UltimateBet’s acquisition by Tokwiro in October 2006. Our investigation has confirmed that the code was part of a legacy auditing system that was manipulated by the perpetrators. Gaming Associates, independent auditors hired by the KGC, have confirmed that the software code that provided the unfair advantage has been permanently removed.” In separate press releases in June and July, UltimateBet admitted that more accounts than were originally announced in May were part of the cheating scandal, and moved to refund money to affected players.
source: http://online.casinocity.com
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