SOURCE: Tokwiro

Tokwiro

September 13, 2009 19:11 ET

Tokwiro Receives Decision on 2008 UltimateBet Cheating Scandal From the Kahnawake Gaming Commission

Tokwiro Enterprises ENRG Assisted the Kahnawake Gaming Commission in an Exhaustive Investigation of a 2008 Online Poker Cheating Incident That Took Place at UltimateBet

MONTREAL--(Marketwire - September 13, 2009) - Tokwiro Enterprises ENRG ("Tokwiro"), the parent company of UltimateBet ("UB"), yesterday received a decision from the Kahnawake Gaming Commission ("KGC"), UB's regulatory authority, regarding the 2008 UltimateBet cheating scandal. The report, which followed an intensive and exhaustive investigation, ruled that Tokwiro has met the conditions imposed on it and has shown adequate cause as to why its Client Provider Authorization ("CPA") should not be revoked. The report also included a full public disclosure of all 23 accounts and 117 usernames that were used by the online poker cheater. The method for determining the list of names was approved by the KGC and their forensic auditors.

The KGC concluded that Tokwiro was not aware of the deficiencies in the control system until after the cheating activity had been initiated; Tokwiro fully cooperated with the KGC throughout the investigation to identify the individual(s) responsible for the cheating incidences; No individual identified as "unsuitable" is currently involved in any aspect of Tokwiro's ownership, management and operations; Tokwiro has ensured that all players victimized by the cheating activity were promptly and fully reimbursed; and Tokwiro has paid the USD$1.5 Million fine imposed by the KGC, plus the costs of the investigation.

Paul Leggett, Chief Operating Officer for Tokwiro, said, "The welfare of our players is our top priority and we are very pleased they now have access to the details of the fraud and all the facts and findings released by the KGC included in their report. A lot of our players have been patiently awaiting the release of the full list of usernames involved in the cheating incidences, and we can now answer any of their outstanding inquiries related to their refunds."

With the completion of the investigation, the KGC has now released their final list of account numbers (User ID) and usernames (the "cheating accounts"), and they are provided in the following table:

UserID          Username     UserID    Username     UserID     Username
              -------------- ------- -------------- -------- --------------
445519               63vette   40018         QQwins  1676953    AllBoutMeee
              -------------- ------- -------------- -------- --------------
445519                Bgroup   40018      Skipmyloo  1676953      Alll Innn
              -------------- ------- -------------- -------- --------------
445519             FlipFlop2   40018       Starbucs  1676953   BlueBerry101
              -------------- ------- -------------- -------- --------------
445519           gravitation  147524  groundskinner  1676953      MoDiddle2
              -------------- ------- -------------- -------- --------------
445519            HeadKase01  147524     TakeThe5th  1676953      Squezzzed
              -------------- ------- -------------- -------- --------------
445519              UTakeIt2  147524   trying again  1676953      VioPlayer
              -------------- ------- -------------- -------- --------------
16054             FireNTexas *147524     2yung2fast  1676953         Xnomas
              -------------- ------- -------------- -------- --------------
16054            FlatBroke33  147524      8-9Suited  1676958      DigginOut
              -------------- ------- -------------- -------- --------------
16054              ilike2win  147524       ACaction  1676958     FristSucks
              -------------- ------- -------------- -------- --------------
2833743               NioNio  147524       azzazzin  1676958     ProBitchen
              -------------- ------- -------------- -------- --------------
2833743             NYMobser  147524       BJPlayer  1676958    SendMeMoney
              -------------- ------- -------------- -------- --------------
1867358          LetsPatttty  147524   crackerboxxx  1676958    SteroidWhiz
              -------------- ------- -------------- -------- --------------
1867358              Eric456  147524          dad77  1676958      WhizzzOff
              -------------- ------- -------------- -------- --------------
1867358           RockStarLA  147524       monizzle  1676972     BeachBumAA
              -------------- ------- -------------- -------- --------------
1867358          Stoned2Nite  147524      NCWolfpac  1676972   Broke_In_L_A
              -------------- ------- -------------- -------- --------------
1867358            WhackMe44  147524       OnceMore  1676972   GameSetMatch
              -------------- ------- -------------- -------- --------------
227061            GrabBag123  147524     scramble18  1676972      GutShot32
              -------------- ------- -------------- -------- --------------
227061             NoPaddles  147524       snowball  1676972     HolyMucker
              -------------- ------- -------------- -------- --------------
227061               nvtease  147524      Tiltorama  1676972       ShaqTack
              -------------- ------- -------------- -------- --------------
227061            Sleeplesss  147524      Titanic_T  1676972    SlimPikins2
              -------------- ------- -------------- -------- --------------
3126267            monizzzle  147524     Triceagain  1676972         WhakMe
              -------------- ------- -------------- -------- --------------
3126267         whowherewhen  147524         WSOP07 *2422566     2Yung2Fast
              -------------- ------- -------------- -------- --------------
12955             dannyboy55  622621    Butterfly29  2422566    ReimburseMe
              -------------- ------- -------------- -------- --------------
40018              Calluwin1  622621    Butterfly30  2422566 Seve2Yung2Fast
              -------------- ------- -------------- -------- --------------
40018          newyearnewlif  622621    dragonfly30  2422566     SeveWonder
              -------------- ------- -------------- -------- --------------
40018                WPTwin1  638132        1105new  2422566     WacoManiac
              -------------- ------- -------------- -------- --------------
40018               78suited  638132        30 I Am  2496885       Twenty 1
              -------------- ------- -------------- -------- --------------
40018              Aruba2005  638132          4peat  2510148       bmw750li
              -------------- ------- -------------- -------- --------------

Account numbers and usernames involved in the cheating incidences (cont...)

UserID       Username     UserID       Username     UserID       Username
           ------------ ------------ ------------ ------------ ------------
40018          Beeeemer       638132    clubhouse      2561615    2Fasttttt
           ------------ ------------ ------------ ------------ ------------
40018          Calluwin       638132  Omyfuknhead      2561615        slug2
           ------------ ------------ ------------ ------------ ------------
40018         Dive-Dive       638132  River-Broke      2561615  SweeetNSour
           ------------ ------------ ------------ ------------ ------------
40018            Indy05       638132   Ticketless      2561621        DoMee
           ------------ ------------ ------------ ------------ ------------
40018           jamaway       638132    workinout      2561621      humster
           ------------ ------------ ------------ ------------ ------------
40018             kid66       966687    CominHome      2561631       BenzMe
           ------------ ------------ ------------ ------------ ------------
40018      marshal arts       966687  Crackcorn55      2561631     flammer2
           ------------ ------------ ------------ ------------ ------------
40018            Natsme       966687     CravinAA      2561631      KidXmas
           ------------ ------------ ------------ ------------ ------------
40018       newyearlife       966687   Jupiter300      2599923     H_Curtis
           ------------ ------------ ------------ ------------ ------------
40018           ocean11       966687    LivTheLif      2641649     commish2
           ------------ ------------ ------------ ------------ ------------
40018          oceans14      1676953    55WasHere      2641649    Treetopss
           ------------ ------------ ------------ ------------ ------------
                                                       2641649 TressureHunt
           ------------ ------------ ------------ ------------ ------------

* Represents accounts that had a duplicate username.

It is important to note that the legacy UB software, which is no longer in use, historically allowed a username to be reused, provided that the username was no longer associated with an account. Because of this, it is possible that some of the usernames which were released yesterday by the KGC may have been used by legitimate accounts, once those usernames were no longer used and controlled by the perpetrator. It is also a fact that a very small number of the usernames associated with the cheating accounts never actually played a hand.

As previously determined by independent investigations and stated in yesterday's KGC report, the malicious software code that enabled the cheating was placed on UB servers prior to Tokwiro's acquisition of the business from Excapsa Software ("Excapsa") in 2006. Tokwiro's consistent position that the ability to cheat predated its ownership was vindicated by the recent legal settlement with Excapsa, under the terms of which Excapsa paid Tokwiro USD$15 million in partial compensation for the damage that was done by the cheating. This payment went toward the USD$22,054,351.91 in complete refunds that Tokwiro issued to the players that were adversely affected by the UB cheating incidences.

"It is extremely important to us that our players and the rest of the poker community understand that the individuals who perpetrated the cheating have never had any involvement with our company and we hope that the KGC report helps to inform the poker community of this fact," Leggett added. "Over the past year we have literally rebuilt our company, creating a new management team and core staff that are poker players themselves and passionate about the game, and we are very excited to demonstrate what we can do in the coming months."

In response to the cheating scandal, Tokwiro has implemented a range of key security measures that include a complete corporate reorganization, the dissemination of new mandatory ethics policies as well as strict policies regarding account name changes and VIP player vetting, the creation of an expanded Security Department to incorporate a specialized group of poker security analysts, and the development of a state-of-the-art Security Center that uses statistical analysis and real-time monitoring to catch cheating, including collusion, chip-dumping, bots, and other illicit activities.

Players with questions regarding the online poker cheating incidences or any other concerns should email UB's Live 24/7 Support at pokersecurity@ultimatebet.com or call 1.888.200.2933 (toll free for US/Canada only). Please note that due to a high volume of requests expected, your patience is appreciated.

For more information regarding the KGC's findings, please read the full report at http://www.kahnawake.com/gamingcommission/

Tokwiro Enterprises, ENRG ("Tokwiro"), is a registered Mohawk sole proprietorship, proudly rooted in the Mohawk community of Kahnawake. Tokwiro owns and manages the online gaming sites Absolute Poker and UltimateBet. Both sites are among the top ten largest poker rooms on the internet. Tokwiro has operations in the Kahnawake Mohawk Territory and in Costa Rica that provide many economic and social benefits for more than 500 employees, their families and communities.

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