Friday, Apr 1, 2011 Mizrachi Wins, Varkonyi Sues
Two well-known poker pros hit the court docket this week as one pro had a lawsuit dismissed while a former WSOP Main Event Champion filed a fraud suit.
Lawsuit Against Mizrachi Dismissed
After a stellar run at the 2010 WSOP that included his first bracelet and a Main Event final-table appearance, Michael "The Grinder" Mizrachi signed a sponsorship deal with Full Tilt Poker.
There was just one problem: He was already signed by Deliverance Poker.
Deliverance Poker sued Mizrachi for breach of contract and Tiltware, LLC for tortious interference. Tortious interference is when a entity convinces another to breach a contract.
The final judgment in the case was finally handed down last week.
US District Court Judge James Nowlin dismissed both charges in the suit without prejudice, meaning that the case could be retried with new evidence.
The breach of contract was dismissed by Nowlin based on language in the contract that was supposed to terminate the contract in the event that Deliverance Poker had not raised the capital to start the online site by August of 2009.
As such, he ruled the contract was not legally binding.
In regards to the second charge, Judge Nowlin stated the true citizenship of the owners of Tiltware, LLC has not been officially determined. If the Tiltware's LLC license is determined to not have legal jurisdiction in Texas, then Deliverance cannot pursue legal action.
Deliverance Poker has not stated whether or not they would refile.
Robert Varkonyi Sues Hedge Fund Over Ponzi Scheme
2002 WSOP Main Event Champion Robert Varkonyi is suing Chetan Kapur and ThinkStrategy Capital Management for $1.4 million after it was determined that the money was tied to a Ponzi scheme.
Varkonyi started investing in a hedge fund with ThinkStrategy Capital Management in 2008. Kapur had been taking the money in the hedge fund and investing it in a hedge fund that was managed by Arthur Nadel.
Varkonyi's suit alleges that the assets of some Class B units were swapped with Class A assets. This made the units worthless.
The hedge fund run by Nadel was ultimately determined to be a Ponzi scheme that stole $168 million from investors. Nadel is currently serving a 14-year prison sentence for his crimes.