{"id":45418,"date":"2017-02-19T12:00:44","date_gmt":"2017-02-19T20:00:44","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=45418"},"modified":"2017-02-18T10:33:28","modified_gmt":"2017-02-18T18:33:28","slug":"fantasy-aces-new-york-gaming-commission","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/fantasy-aces-new-york-gaming-commission\/","title":{"rendered":"Fantasy Aces Hires Criminal Lawyer as New York Gaming Commission Turns Up the Heat"},"content":{"rendered":"

The New York Gaming Commission has launched an investigation into Fantasy Aces, the daily fantasy sports site that filed for bankruptcy at the end of January, apparently unable to pay its players.<\/p>\n

\"
Trent, Tom and Brian Frisina are the co-founders of Fantasy Aces. The company\u2019s apparent co-mingling of player funds and operating costs may render it liable for wire fraud. (Image: Fantasy Aces)<\/figcaption><\/figure>\n

According to the Wall Street Journal<\/i>, the company\u2019s management has hired attorney Robert J. DeGroot, a criminal defense lawyer, to field questions from the commission about exactly what happened to its players\u2019 funds.<\/p>\n

It became the commission\u2019s duty to oversee DFS<\/a> at the beginning of August last year, when the state enacted a bill to license and regulate the industry, one of eight states to do so last year. On August 22, the first temporary licenses were issued, one of which was granted to Fantasy Aces.<\/p>\n

A condition of licensing was that licensees must keep player funds segregated from operating costs, an obligation Fantasy Aces, apparently, did not fulfill.<\/p>\n

$1.3 Million Owed<\/b><\/h2>\n

Bankruptcy filings state that players are owed $1.3 million, while an account listed as \u201cPlayers Account\u201d contains just $2,419. The company also states it has assets of $1.8 million, which will be liquidated to pay creditors, but it also has liabilities of $2.96 million.<\/p>\n

\n

Earlier this week Fantasy Draft, a rival site that had been close to purchasing the Fantasy Aces just prior to its application for bankruptcy, announced that it would step in to cover the players balances, a gesture, it said, would \u201cpreserve the lifeblood of the industry.\u201d<\/strong><\/p>\n<\/blockquote>\n

But this does not excuse the fact that the Fantasy Aces\u2019<\/a> management may have committed wire fraud if they are found to have violated their licensing by co-mingling player funds with operational costs, and the appointment of a criminal lawyer is a tacit acknowledge of this.<\/p>\n

DeGroot Says No Comment<\/b><\/h2>\n

DeGroot failed to respond to WSJ\u2019s request for a comment, but bankruptcy lawyer\u00a0Richard Marshack, an independent trustee appointed to oversee Fantasy Aces\u2019 chapter 5 liquidation, said it appeared to him that player funds had indeed not been segregated.<\/p>\n

A statement on DeGroot\u2019s website said that all accounts were on hold during while \u201cwe work with the bankruptcy court in finding the fastest possible solution for our players.\u201d<\/p>\n

Lee Park a spokesman for the gaming commission confirmed to WSJ that Fantasy Aces was being investigated for non-compliance with state gaming laws, although he declined to go into detail.<\/p>\n

\u201cAny further action that might be taken is under review pending developments in bankruptcy court to protect contest patrons,\u201d he said.\u00a0\u00a0<\/span><\/i><\/b><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The New York Gaming Commission has launched an investigation into Fantasy Aces, the daily fantasy sports site that filed for bankruptcy at the end of January, apparently unable to pay its players. According to the Wall Street Journal, the company\u2019s management has hired attorney Robert J. DeGroot, a criminal defense lawyer, to field questions from […]<\/p>\n","protected":false},"author":42,"featured_media":45419,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,60,16,1074],"tags":[],"acf":[],"yoast_head":"\nFantasy Aces Hires Criminal Defense Lawyer as New York Gaming Commission Turns Up the Heat<\/title>\n<meta name=\"description\" content=\"Fantasy Aces is probed by New York Gaming Commission Over Allegations that it failed to segregate player funds from operating costs.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fantasy Aces Hires Criminal Defense Lawyer as New York Gaming Commission Turns Up the Heat\" \/>\n<meta property=\"og:description\" content=\"Fantasy Aces is probed by New York Gaming Commission Over Allegations that it failed to segregate player funds from operating costs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/fantasy-aces-new-york-gaming-commission\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2017-02-19T20:00:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-02-18T18:33:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/182261.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"400\" \/>\n\t<meta property=\"og:image:height\" content=\"301\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Casino.org Staff Writer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Casino.org Staff Writer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-new-york-gaming-commission\/\",\"url\":\"https:\/\/www.casino.org\/news\/fantasy-aces-new-york-gaming-commission\/\",\"name\":\"Fantasy Aces Hires Criminal Defense Lawyer as New York Gaming Commission Turns Up the Heat\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-new-york-gaming-commission\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-new-york-gaming-commission\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/182261.jpg\",\"datePublished\":\"2017-02-19T20:00:44+00:00\",\"dateModified\":\"2017-02-18T18:33:28+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/8c48bf89dc86da77b4d856c7b3b78d77\"},\"description\":\"Fantasy Aces is probed by New York Gaming Commission Over Allegations that it failed to segregate player funds from operating costs.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-new-york-gaming-commission\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/fantasy-aces-new-york-gaming-commission\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/fantasy-aces-new-york-gaming-commission\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/182261.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2017\/02\/182261.jpg\",\"width\":400,\"height\":301,\"caption\":\"Trent, Tom and Brian Frisina are the co-founders of Fantasy Aces. 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