Absolute Poker issues update on scandal

Absolute Poker issues update on scandal
Absolute Poker issues update on scandal 

By Sarah Polson
November 10, 2007

Joe Norton, the former grand chief of the Mohawk Territory of Kahnawake 
and the owner of Tokwiro Enterprises ENRG, which holds a 100% interest 
in Absolute Poker, sent out a statement Thursday with more information 
about the poker site's recent security breach.

Norton said the Kahnawake Gaming Commission's investigation into the 
security breach is still on-going, and as such, any information provided 
in the interim statement he put out was subject to the completion of the 
final KCG inquiry. The audit by Gaming Associates was also in the 
process of being completed.

"First and foremost, we would like to assure our players, once again, 
that the security breach, which resulted in unfair play, was resolved 
immediately after it was discovered and confirmed, and AP's sites are 
absolutely secure," Norton said.

Players affected by the breach have been fully reimbursed with interest
- an amount estimated at $1.6 million in refunds.

So far an internal audit by the poker site has discovered that the 
unfair play went on for about 40 days, beginning on Aug. 14.

According to Norton, a known perpetrator was immediately terminated upon 
discovery of the scheme and no longer has access to Absolute Poker, and 
the internal investigation is still continuing.

Norton notes that no evidence of the current or past existence of a 
"super-user" account has been found, and there are no player accounts in 
the poker site's system with the ability to see other players' hole 

Instead, the system breach was the result of a recent internal software 
release impacting internal reporting. Only an authorized employee at the 
poker site would have been able to exploit that issue with the internal 

That employee manipulated the internal reporting software, together with 
the gaming software, to cheat on the site.

"The security breach was not, therefore, the result of an external 
action, and no individual outside AP could exploit the breach," Norton 

The accounts found to have been used in the cheating scheme are 
potripper, graycat, steamroller, doubledrag, payup, supercard55 and 
romnaldo. The accounts have been closed, and all players who played 
hands and lost funds during the period in question against these 
accounts have received refunds.

Norton said Absolute Poker can confirm that not every hand played by the 
perpetrating accounts during the period in question was compromised by 
the tool that gave them an unfair advantage. However, the site is 
refunding players for the net loss resulting from every hand played 
against those accounts during the affected period.

All hand histories with respect to the affected period were retained by 
the poker site and made available to the Kahnawake Gaming Commission and 
the internal auditor for review.

Norton said all registered accounts in the poker site's database are 
under investigation to ensure that there are no other compromised 
accounts with links or associations to the closed accounts.

"AP regrets the damage that has been done to its players and to its own 
reputation by this incident," Norton said.

"We are absolutely focused on doing the right thing for our loyal 
customers, employees, consultants and business partners, and we will 
continue to work with the KGC and Gaming Associates to bring this 
incident into the full light of day and to right any wrongs done to 
innocent victims of this unfair play."

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