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Daily Archives: February 15, 2022
Shared Liquidity in US Online Poker? It’s Closer Than You Think – PokerNews.com
Posted: February 15, 2022 at 6:10 am
Online poker in the US may soon receive a big boost as it looks like shared liquidity is just around the corner.
That is because a pending lawsuit against the United States Department of Justice over a previous administrations interpretation of the Wire Act, coupled with recent developments in Michigans rollout of online poker, signals a shift in legal tides that could significantly increase the number of players in online poker pools.
Heres a look at the states in the United States that currently offer legalized online gaming in some capacity:
Nearly every poker player the US is familiar with the Interstate Wire Act of 1961, a federal law prohibiting interstate wagering. While there have been various rulings and opinions as to whether the law applies to online poker and other forms of gambling, a 2011 ruling by the Department of Justice (DOJ) under President Barack Obama determined that the Wire Act only applies to sports betting.
However, in 2018, the DOJ under President Donald Trump reversed its position by issuing an opinion stating that the Wire Act does indeed apply to all forms of gambling, including casino games, lotteries, and, you guessed it, poker.
The reversed opinion, which has been tied to the late Sheldon Adelson, a Republican megadonor primary opponent of online gaming, created headache and confusion in the gaming industry and left states looking to or in the process of legalizing online gambling in murky waters.
New Hampshire took the DOJ to court over the issue and, in June 2019, the Federal District Court ruled against the 2018 DOJ interpretation of the Wire Act, meaning that online lottery and poker do not violate U.S. law.
The 2019 ruling was later upheld by the US District Court after the DOJ unsuccessfully appealed the case, as PokerNews reported in January 2021. Then, the justice department let a June 2021 deadline to appeal the decision with the Supreme Court pass and stated that the government is not planning to seek Supreme Court review of the First Circuits decision.
While the District Court's upholding of the narrow interpretation of the Wire Act was widely viewed as a big victory for the online poker and gaming industries, the DOJs refusal to formally abrogate its 2018 opinion has left plenty of room for worry and uncertainty among stakeholders and players.
Learn more about Michigan Online Poker here
International Game Technology, or IGT, sued the DOJ under Attorney General Merrick Garland in November 2021 in an attempt to get the DOJ to formally take a stance on the 2018 opinion and clarify the scope of the 2019 New Hampshire ruling.
In the lawsuit, which was filed in Rhode Island District Court, the Rhode Island-based lottery company asked for a declaratory judgment that the Wire Act does not apply to IGTs non-sports gaming operations.
Because virtually all modern lottery and gaming relies on interstate wires, and because the lottery and regulated gaming industries were built around the understanding that the Wire Act poses no impediment to those state-regulated activities, the New Hampshire State Lottery Commission and its lottery provider, NeoPollard, challenged the 2018 OLC Opinion in federal court, the lawsuit reads. Because relief was limited to the plaintiffs in that case, however, the 2018 OLC Opinion remains DOJs binding policy today.
The lawsuit continues, As a result, IGTs entire non-lottery gaming business is subject to prosecution and DOJ has offered only the promise of a 90-day heads up before it can subject IGTs lottery business to the Wire Act as well.
"It is possible DOJ is kicking the can down the road a bit because it has not yet formulated a policy position.
Last month, the DOJ told the court that it needed more time to respond to IGTs complaint. The court granted a 30-day time extension, giving the DOJ until Feb. 23 to address the complaint.
A handful of gaming attorneys and experts told US Gaming Review earlier this week that time extension requests are fairly typical and dont necessarily signal developments in the case. However, Jermy Kleiman of Saiber LLC told the same outlet that it is possible DOJ is kicking the can down the road a bit because it has not yet formulated a policy position.
Whether the DOJ formally abrogates the 2018 interpretation of the Wire Act, gaming experts widely believe IGT will prevail in its lawsuit.
One such expert is Anthony Cabot of the Boyd School of Law at the University of Nevada-Las Vegas, who told US Gaming Review that if this went to court decision, IGT would press for a decision that had broader implications than the impact of the 2018 opinion on its Rhode Island operations.
The better case scenario is for the DOJ to repudiate its blatantly incorrect and politically motivated 2018 opinion and reaffirm the proper analysis from its 2011 opinion that the Wire Act only applies to sports wagering, Cabot added. This may be the course the DOJ takes as it is correct, expedient and cost efficient.
IGT is not alone in calling on President Joe Bidens DOJ to clarify its stance on the 2018 opinion. In June 2021, a group of 26 Attorneys General wrote to Garland urging him to clarify the departments official position on the previous administrations interpretation, noting that states need finality on this issue before they invest more resources in the development of online lottery platforms.
The (DOJ) can and should put an end to this matter once and for all, wrote the group, which includes attorneys from the seven states with legal online poker, including Pennsylvania, Michigan and West Virginia.
Learn more about Pennsylvania Online Poker here
With both the IGT lawsuit and pressure from attorneys representing over two dozen states, time is running out for the Biden administration to clarify its position on the Wire Act, or to formally abrogate the 2018 opinion.
Doing so would clear the way for more states to legalize online poker without fear of running counter to federal law. More than that, it would enable states with legal online poker but closed-off player pools to join an interstate poker compact.
Two such states are Michigan and Pennsylvania, both of which only allow in-state play on regulated poker sites. As a result, players in these states remain siloed off from the combined pool of players in New Jersey, Nevada and Delaware made possible through the Multi-State Internet Gaming Agreement (MSIGA).
Just last month, Michigan Gaming Control Board (MGCB) spokesperson Mary Kay Bean told MI Gaming Review that Michigan asked to join the compact last year and submitted some suggested changed based on the requirements of our law, a clear indicator of the states interest in joining the MSIGA.
MI Gaming Review further reported that Michigan Gov. Gretchen Whitmer and state regulators were at odds over who should sign an agreement to enter MSIGA, yet another indicator of the state inching closer to joining the compact.
Should Michigan or Pennsylvania join the compact, it would be a positive for online poker players and operators alike. With the two state's combined population of over 23 million, the pool of potential players would nearly triple in size, creating more action for players, generating more money for site operators, and bringing in more tax revenue for states.
As PokerNews noted last year, if all seven states were joined in one combined player pool, it would total approximately 41 million potential players.
Having more states enter into the existing multi-state compact or legalize online poker would clearly be major positive developments for online poker in the US. As things stand, both seem to be more questions of when than if.
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Poker Fanatic Richard Seymour Elected to NFL Hall of Fame – CardsChat.com
Posted: at 6:10 am
Former football great and current competitive poker player Richard Seymour will soon be inducted into the NFL Hall of Fame.
The three-time Super Bowl champion has channeled his competitive spirit into the game of poker since retiring in 2012. He has more than $645K in live tournaments winnings, including a nearly $60K score at the 2019 WSOP Main Event where he finished 131st out of 8,569. His closest sniff at poker hardware was a third-place finish at the $25K PokerStars Caribbean Adventure in 2018 for $376K.
Just to compare, his bonus for winning his first Super Bowl was $63K. The next two were worth $68K. Hes made $89.5 million playing football, according to spottrac.com.
The 66 former defensive tackle often uses one of his Super Bowl rings as a card protector to intimidate people and also as a conversation starter.
My temperament fits poker well; Im naturally kind of reserved, Im not super emotional one way or another, so if bad things happen, which theyre going to in poker, its about how do you respond?he told Yahoo Sports.
Seymour was a major component of New Englands championship teams from 2001 to 2008 before playing another four seasons with the Oakland Raiders. The sixth-overall pick in 2001, Seymour solidified the center of the Patriots defense and helped begin their dominating run.
He laid the foundation for a defense that helped propel the Patriots to three Super Bowl championships in his first four seasons in the NFL, Patriots owner Robert Kraft said in a statement after Seymours Hall of Fame selection was announced. Richard was the consummate professional and leader, always accepting the roles he was assigned, putting team goals ahead of personal ones, and in turn, raising the game of everyone around him.
Rich Eisen talked to Seymour about poker and the WSOP after his deep run in the 2019 Main Event.
Seymour said he started taking poker seriously after retiring from football in 2012. He told Eisen that before his retirement, he would play with his Oakland Raider teammates while watching Monday Night Football. While training as a team in his hometown of Atlanta during the player lockout of 2011, he even hired dealers and spread a tournament for everyone.
floor auto seat change if 2 main event champs are at your table its a rule @RyanRiess1 @Martin_Jacobson @WSOP #1500closer #letscompete pic.twitter.com/DPRI3QgWyr
Richard Seymour (@BigSey93) July 15, 2019
Seymour said he learned poker after watching his father play video poker in convenience stores in Georgia when he was a kid, and that the game served as a competitive outlet following the end of his pro football career.
Once youre done playing football you still have a competitive drive. Poker is an outlet for me where I have a competitive drive, you have to be very cerebral, Seymour told Yahoo! Sports. It requires a lot like it did for me in football I have to be patient, I have to know how to pick my spots, pay attention to guys tendencies. It was just a natural progression after leaving sports at a high level.
Seymour can be found at WSOP Circuit and WPT events around the country. He most recently cashed in a $550 event at the Wynn Fall Classic in November. His Hall of Fame induction ceremony is scheduled for Aug. 6 in Canton, Ohio, but unfortunately for Seymour, there are no major poker tournaments scheduled in the area that weekend.
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Bob Pajich
Bob Pajich is a poker news reporter, creative writer, and poker player who never met suited connectors he didn't like.
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Suns are playing poker with a short deck – Bright Side of the Sun
Posted: at 6:10 am
The Phoenix Suns have won three straight, including the last two on the road in back-to-back fashion against East powerhouses Chicago Bulls and Philadelphia 76ers. Using a wider lens, they have won 14 of their last 15 games. Pull back even wider and youll see a 17-2 record since the New Year to bolster their league-leading record to 44-10.
Chris Paul, Devin Booker and Monty Williams coaching staff will all represent the Phoenix Suns in the 2022 All-Star Game.
On the whole, everything is pretty great in the Valley of the Sun.
Lately though, the deepest team in the league has been bitten hard by injuries. In the last eight games, the Suns have had only seven or fewer reliable players available the vaunted starters plus Cameron Payne and JaVale McGee.
Their once-deep bench has been decimated. Cameron Payne has missed the last 8 games. Either Landry Shamet (4) or Jae Crowder (4) have missed the same eight. Deandre Ayton missed the first three of those eight and has been slow to regain his form since returning. And thats already being down Frank Kaminsky (the last 40), Abdel Nader (38) and Dario Saric (all season) for forever.
As a result, Monty has three strata of players available each night:
Chris Paul (who will turn 37 this spring), Devin Booker and Mikal Bridges have been playing a whopping 37 minutes a night over the last eight. Booker and Bridges can handle it because theyre in their athletic primes, but I worry about Chris Paul. With Cameron Payne out and Elfrid Payton so ineffective, Paul has logged 39+ minutes in 4 of the past 6 games. Thats not a good formula for one of the oldest players in the league.
Talented backup Cameron Johnson who was SNUBBED for the three-point contest on All-Star Weekend has seen his minutes increase to 28 a night.
All four of Paul, Booker, Bridges and Johnson have admirably shouldered the load to carry the team.
Talented backup center JaVale McGee is the only one of this group who is healthy but has not seen an uptick in minutes (16 per game) during this stretch. The 33-year old has a very specific role to be his most effective self, and Monty is sticking with that. Hed rather give Bismack Biyombo spot minutes than extend McGee.
Both Deandre Ayton and Jae Crowder have been shadows of themselves for most of the games since their return from injury.
Ayton (ankle) posted 20 points and 16 rebounds in only 24 minutes last Saturday versus the Wizards, but overall is just putting up 12 points and 9 rebounds in 26 minutes per game since returning five games ago. The short minutes are a red (maybe yellow?) flag for me. Hes playing much fewer minutes upon his return than the previous three times he missed games this year. The Suns have not reported any lingering issues with Ayton, but the short minutes are a clear sign to me that hes being restricted while he plays back to full health.
Crowder told all of us he needed more time to let his left wrist heal, but decided to play with the pain when he saw so many guys go down injured. Hes on regular minutes (almost 30 per night), but scoring only 6 points per game on 29% shooting (20% on threes) and been in foul trouble more often than usual.
With Cameron Payne (wrist), Landry Shamet (ankle) and the three amigos (Frank, Abdel, Dario) on the shelf, the Suns are stuck with their deep bench the bottom three, a two-way and a 10-day for way too many minutes a night these days.
Elfrid Payton has struggled mightily with running the offense when Chris Paul sits he wont shoot, constantly drives into traffic only to bail out and doesnt set anyone up for good shots. Jalen Smith is effective as a center, but totally lost as a power forward. Bismack Biyombo tries hard, but cannot make a shot unless fed by Chris Paul. Two-way forward Ish Wainright cant create a shot either, and fouls more often than he locks anyone up on D. Justin Jackson hasnt made a jumper since signing another 10-day last week.
They are passable on their own when surrounded by four good rotation players, but you just cant put more than one or two of them out there at once.
When the Suns played them as a group the whole fourth quarter against the Wizards, they got outscored 29-10. When they got another chance in the final minute against the Bulls, they got outscored 8-0. Both times, against the other teams deep bench too, making Suns blowouts look much closer than they should have.
How much longer can the Suns keep going like this? Sure, they just beat two of the best East teams on the road and, again, are a league-best 17-2 in 2022. But they really need some reinforcements soon or they could be facing some losses, on the injury report and the scoreboard.
The worst thing they could do is wear out Chris Paul. They need him healthy and full of energy come playoff time if they want to hoist the Larry OBrien.
Unfortunately, theres not yet any timetable on Cameron Payne, the most important of the injured players because hes Pauls backup. The Suns last comment was that they would re-evaluate him this week after two weeks of rest. Hopefully, he comes back soon but a complete shut-down is not usually followed by a quick Im back!.
Certainly, the Suns are evaluating Paynes recovery today, just 24 hours before the annual trade deadline.
The Suns have some assets to use without breaking up the core, but not a lot:
Even after talking to a handful of insiders around the league, I still dont know what the market is for the injured Dario, or the Suns interest in even trading him at all. But his contract is the only one the Suns can use if they want to acquire someone making more than $6 million this year.
If the Suns end up trading Jalen Smith for a backup point guard (like, Dennis Schroder for example), then the prognosis on Payne probably wasnt very good. Schroder is a guy you only acquire if youre going to play him primary backup minutes. Hed either have to be tabbed for Paynes job or Shamets job.
The Suns could also trade for Houstons Eric Gordon as a combo guard who can run the offense when Chris Paul sits, but Gordon is old, super-expensive for years to come and would cost a future first round pick to acquire. Id be shocked if the Suns make this move.
The Suns could also wait to see what ends up on the buyout market. Theres a strong possibility that Goran Dragic gets bought out by Toronto if they cant trade him in the next week. Suns fans would love to see The Dragon back in Phoenix, but they would have to compete with 29 other teams for his services. On the downside, he hasnt played all year, is probably a shadow of himself these days and entirely injury-prone. On the upside, maybe he can drink from Chris Pauls fountain of youth and recapture some Dragon magic.
The Suns do have a nice chunk of money to offer a bought-out player. Most teams can only offer the league-minimum (under $3 million for Dragic), but the Suns have up to $4.5 million remaining unused from their mid-level exception.
A combination of Torrey Craig (trade, for Smith) and Goran Dragic (buyout signing) might just be the best-case scenario over the next week to fill needs at forward and point guard, but the only certainty there would be Craig.
If the Suns decide they need certainty at point guard, they might get Dennis Schroder (trade, for Smith) and hope for a Thaddeus Young on the buyout market.
Either way, Id be surprised if the Suns dont bring in two new bench players by the end of next week.
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Will Cryptocurrency Change the Course of Online Poker? – TechSpective
Posted: at 6:10 am
In the 2010s, cryptocurrency well and truly exploded into the mainstream by infiltrating a growing number of global industries and sectors, including online gaming. Suppose you are familiar with the process of registering to play at the latest and greatest online casinos. In that case, you may have even experienced depositing and withdrawing with cryptocurrency instead of a traditional payment method such as a bank transfer, credit card, debit card, or e-wallet.
Lets examine the ways cryptocurrency will change the course of online poker.
It may be relatively safe and secure to game with real money at online casinos, but, as recent online gaming behavior has shown, cryptocurrency has proven to be a much safer and securer alternative. It is one of the main reasons why a growing number of consumers accustomed to visiting brick and mortar casinos have decided to take the plunge and switch to online casinos. It is a common misconception that online transactions processed with cryptocurrency provide you with complete anonymity but compared to traditional payment methods, it offers greater safety and security. It ensures your personal data is shielded from prying eyes.
In the online gaming world, competition can be fierce. Online casinos must continue to follow emerging digital trends and do whatever it takes to remain at the forefront of modern technology. It is, therefore, not only possible but highly likely that online casinos that embrace cryptocurrency with open arms will be making the most of available technology and, in turn, catering to growing demand. Suppose you have recently visited an online casino or poker game, such as GGPoker Flip & Go, for example. In that case, you may have based your decision on their ability to make the most of available technology by doing so often, resulting in a more excellent user experience for players.
If the past couple of years is anything to go by, it is clear that it is no longer a question of if cryptocurrency will change the course of online poker but rather when cryptocurrency will change the face of online poker. It has already experienced rapid growth and development within the broader online gaming world, having already been adopted by a wide range of online casinos and poker platforms. Still, to turn the industry on its head, it may take a considerable amount of time for online gamers, developers, and networks to believe in the wide-reaching benefits of cryptocurrency for all parties involved. However, it has already proven that it can provide a streamlined user experience with no need for third-party verification, fast deposit and withdrawal timeframes, and greater privacy. It is also expected to continue accelerating at breakneck speed as it becomes commonplace within the broader online gaming world and is adopted by a growing number of global industries and sectors.
Suppose you are an avid online poker player or watch major tournaments on television. In that case, you may already be aware that cryptocurrency is currently making waves in the wider online gaming industry. It is also poised to change the course of online poker by providing greater safety and security and making the most of available technology. It will, however, take a considerable amount of time to do so with the vast majority of online gamers, developers, and networks yet to get on board and experience the wide-reaching benefits of the latest digital trend for themselves.
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Gioconews Poker The cruelest man in the world, the wonderful heads up between poker, bluff and huma… – D1SoftballNews.com
Posted: at 6:10 am
There is so much poker in the last show by Davide Sacco, The cruelest man in the world launched last weekend at Manini Theater of Narni in national premiere and with Lino Guanciale and Francesco Montanari. But apart from two instrumental citations to the story, the dialogue between Paolo Veres (Guanciale) and the young journalist of a local head (Montanari) it is a real heads up with a huge stake of 500 thousand and then 1 million euros which, however, does not make anyone a winner.
Far be it from us to spoil this wonderful show that bases much of the emotion in the evolution of the two characters and in the ending. But we could not fail to find so much psychology and so much bluff in the sometimes surreal (but unfortunately never unreal) dialogue between the two.
This is the story. Davide Sacco draws the encounter-clash of two men very different from each other, yet so similar in their weaknesses. Two figures imprisoned inside an abandoned shed who, from the inside, listen to the echo of the noises of the factory coming from the outside.
Paolo Veres (interpreted by Linen Pillow) is sitting at his desk. It is he, the cruelest man in the world or, at least, this is the consideration that people have of him, an unscrupulous businessman ready for anything. Veres is the owner of the most important arms company in Europe. He is a killer with a reputation for being a shy and reserved man and, in front of him, is a young journalist (played by Francesco Montanari) of a local newspaper, unexpectedly chosen to interview him. But the chat-interview will immediately take a strange turn.
After an initial skirmish in which Veres confesses to his submissive and shy interviewer that he often plays poker in his spare time and his edge, in fact, beautifully interpreted by Guanciale, it is enormous.
Veres will later reveal to the reporter that to pay the debts to his creditors his father invited them to Monte Carlo to play poker and pretended to lose. The enemies, however, then killed them in a room next to the game table. Ok, dont worry, its just fiction in Monte Carlo no one has ever died, not even James Bond. But the suggestion is wonderful.
The turning point is when Veres comes out like this: Would you kill the cruelest man in the world for a billion?, And the proposal touches on the ethics of the young journalist hitherto closed, tight, we would say in our jargon. The raise of Guanciale shakes the reporter who, in his hand, does not exactly have such a poor hand. On the contrary. He begins to use out his aggression at the table which in this case is a stage set up with noir style that seems to resemble a heavy game of No Limit Holdem high stakes at the Rounders between Matt Damon (Mike Mcdermott) e Teddy Kgb masterfully interpreted by John Malkovich.
Who would condemn me? Who would judge me? Why shouldnt I kill the cruelest man in the world? Says Montanari.
Do you still believe that we can go on after this night do you believe that this life, tomorrow morning, will be the same as it was before?. Veres will tell the reporter.
We do not spoil anything but the two play a very heavy game on a psychological level as only with two hole cards (or five you decide) and three ways to see and bet you can do. So it comes the 3bet, the re-launch of the journalist: To kill her I want 1 million euros. Ready a second bag of Veres that makes Call. There is, plays and goes to see if it really will kill him.
The Cruelest Man in the World is a civic path on the sense of justice and morality, in which two men cross and deepen the meaning of the word humanity, investigating the rottenness that characterizes the human race explains the author we are scum !, the reporter will say. We are only men, will be the cynical answer of Veres. Yet, in the close dialogue that involves the two protagonists revealing their personalities, the roles of victim and executioner will soon begin to get confused, until an ending is reached that will overturn every perspective.
And here we stop why you should see the turn and river at the theater for the next few months on a national tour. But Saccos writing is a wonderful heads up where there is money, humanity, dignity and many other things to discover in the evolution of the hand, er, ok, of the show. Good game really!
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That Time DAVID LEE ROTH Played Poker With Tony On The Sopranos In 2004 – Metal Injection
Posted: at 6:10 am
January 10, 2022 marked the 23rd anniversary of the first episode of The Sopranos, the HBO series that instantly captivated viewers when it debuted in 1999. The Sopranos would run for six seasons and along the way, ushered in a new era of Golden Age (or Second Golden Age) TV. In this case it would be intense, character-driven human drama and storytelling with copious amounts of violence and clandestine storylines. And everybody sat down on Sunday night to watch it all go down. If you didn't have HBO, you were parked on a friend's couch that did.
The show had its fair share of guest appearances over the years. Specifically the 2004 episode "All Happy Families" that featured actor Steve Buschemi, the late Peter Bogdanovich, old-school crooner Frankie Valli (a native of New Jersey who appeared on The Sopranos seven times), and an awesome curveball appearance by vocalist David Lee Roth,who of course played himself. After his appearance on the show, Roth reportedly said the following about the experience:
"Mom says I'm going to look like Lee Marvin in ten years whether I'm in movies or not, so I might as well get after it!"
Im not going to be the one to say that Roths dear Mom wasnt too off-base about her prediction. But listen, if youre going to look like someone when you get older, Lee Marvin (whose hair turned prematurely white by the time he was 40), isnt the worst-case scenario by a long shot.
Roth was seemingly everywhere in 2004. And some of the places he popped up were completely random, outside of course showing up on The Sopranos, seated at Tony's right hand at the poker table. He toured as a solo act in Japan, the UK, and the US in January, February, and March, and would later make headlines when it was discovered he was (and had been) a paramedic in New York City and ended up saving a woman's life after she had a heart attack. Plus he walked the Red Carpet at the MTV Video Music Awards and performed with the Boston Pops on the 4th of July. So, considering all this, it's not a major stretch that the stars aligned between the Big Apple and its neighboring New Jersey (both were primary filming locations for The Sopranos). Again, Roth ended up playing himself with his hair long and colored platinum blonde, as a guest at Tony's infamous poker games. Here's an amusing take from Roth (as told to Rolling Stone) about Tony Soprano, one of the greatest fictional protagonists ever portrayed on television, played by the late James Gandolfini:
"You know, twenty years ago, Tony Soprano was driving around New Jersey in his Iroc-Z just blasting Van Halen."
His scene lasts 90 seconds, but he still got to deliver a few lines of dialog. One of which is classic David Lee Roth a "let me tell you a story" moment which must be absolutely true. The 2004 season of The Sopranos would be the first time the show, after being nominated for an Emmy every year since it began, would finally score the award for Outstanding Drama Series. And of course, Roth had a hand (probably a royal flush), in that.
Bless you, David Lee Roth. We don't deserve you.
David Lee Roth having his big moment on The Sopranos in 2004.
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That Time DAVID LEE ROTH Played Poker With Tony On The Sopranos In 2004 - Metal Injection
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2021 was one of the worst years in decades for BigLaw bankruptcy practices – ABA Journal
Posted: at 6:10 am
Bankruptcy Law
By Debra Cassens Weiss
February 14, 2022, 8:46 am CST
Image from Shutterstock.
BigLaw bankruptcy practices suffered a big downturn last year as fewer large companies sought bankruptcy protection.
Bloomberg Law has the story.
BigLaw bankruptcy practices just finished one of their worst years in decades, the article reports.
Bloomberg cited information from the University of California at Los Angeles LoPucki Bankruptcy Research Database, which found that only eight public companies with more than $300 million in assets sought bankruptcy protection last year. The number of major filings hasnt been that low since 1987.
The slowdown is a big change from 2020, when Kirkland & Ellis earned more than $200 million in a COVID-induced bankruptcy boom, according to Bloomberg Law. Contrast that with 2021, when Kirkland earned about a tenth that much in bankruptcy fees.
The article reports that Latham & Watkins and Weil, Gotshal & Manges saw similar booms and busts.
Law.com also noted the bankruptcy downturn last month. The publication reported that commercial Chapter 11 filings decreased by nearly 50% last year, citing data from Epiq Global, a legal data company.
In interviews, bankruptcy practice leaders insisted that out-of-court restructurings and other insolvency matters have filled gaps left by the Chapter 11 lull, the article reported. But they also admittedly have some time on their hands, which theyre using to sniff out insolvency in distressed sectors and market their services to existing and potential clients.
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2021 was one of the worst years in decades for BigLaw bankruptcy practices - ABA Journal
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Bankruptcy Discharge: What Is It? Forbes Advisor – Forbes
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Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
In a bankruptcy case, bankruptcy discharge means a judge has declared that youre no longer responsible for paying debts. Its a permanent action that affects some, but not all, types of debt.
Even though a discharge wipes out certain debts and can help get your finances in order, the bankruptcy remains on your credit report for seven or 10 years, depending on the kind of bankruptcy.
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A bankruptcy discharge permanently prevents a creditor from trying to collect discharged debts. A discharge can happen in four types of bankruptcy cases:
Bankruptcy discharge applies only to debts you accumulated before filing for bankruptcy.
According to the United States Department of Justice, its important to list all of your property and debts in bankruptcy documents. If you fail to mention a debt, a judge may not discharge it. Also, a judge might refuse to discharge a debt if, for instance, you hide property or falsify records.
A Chapter 7 bankruptcy filer typically gets an automatic discharge of eligible debts, such as credit card bills, unless legal challenges have been raised about a requested discharge. Meanwhile, debts included in a Chapter 13 bankruptcy can be discharged, but normally arent since this type of bankruptcy generally involves debt restructuring. Chapter 7 and Chapter 13 are the two most common types of bankruptcy.
In a Chapter 7 bankruptcy case, a discharge can take four to six months. In other bankruptcy cases, including Chapter 13, payments are often made over a three- to five-year period, so typically, a discharge takes around four years.
An array of debts can be discharged in a bankruptcy case. Some of these include:
Not all debts can be discharged in a bankruptcy case. Some of the debts exempt from discharge include:
A judge can deny a bankruptcy discharge for several reasons, such as:
You might be able to get federal and private student loan debt discharged if the bankruptcy court approves your request through whats known as an adversary proceeding. In this request, a Chapter 7 or Chapter 13 bankruptcy filer states that student loan debt repayment would cause financial hardship for them and their dependents.
Positive scenarios that might arise from a hardship filing include:
In 2021, the American Bar Association, a group for lawyers and law students, urged Congress to change the U.S. Bankruptcy Code to give borrowers the ability to discharge student loans without proving that repayment of the debt would impose an undue hardship on them or their dependents.
The proposed federal Fresh Start Through Bankruptcy Act of 2021 would make federal student loans eligible for discharge in a bankruptcy case 10 years after the first loan payment is due. Furthermore, the act would retain the current undue hardship discharge option for private student loans and for federal student loans that have been due for less than 10 years.
Student loan debt follows you to your grave. For years, I have supported allowing struggling borrowers to discharge their loans in bankruptcy as a last resort, said U.S. Sen. Dick Durbin, D-Illinois, a co-sponsor of the Fresh Start legislation, in a press release.
Debt collectors cant try to collect debts that have been discharged in a bankruptcy case. In addition, debt collectors arent permitted to attempt debt collection while a bankruptcy case is pending.
If you believe a creditor has violated the courts prohibition of contacting you about a discharged debt, consider asking an attorney about your legal options. If a creditor tries to collect on a discharged debt, a debtor can report this to the bankruptcy court and request that their case be reexamined. A judge can punish a creditor whos found to have violated the no-contact rule.
When it comes to bankruptcy, a discharge is a good thing. On the other hand, a dismissal may not be such a good thing.
A discharge in a bankruptcy case means all allowed debts have been forgiven. Meanwhile, a dismissal refers to your cases being booted by a bankruptcy court. Reasons that your case might be dismissed include failing to submit the proper paperwork, failing to provide requested documentation or show up for a court appearance, or seeking a type of bankruptcy that doesnt apply to you.
Both a bankruptcy filing and bankruptcy discharge can hurt your credit. Thats because the bankruptcy filing and discharged debts can stay on your credit report for seven or 10 years. However, a debt showing up on your credit report as discharged may be less harmful than an unpaid debt that lingers indefinitely on your credit report.
A Chapter 7 bankruptcy falls off your credit report after 10 years. For Chapter 13 bankruptcy, its seven years.
Keep in mind that a discharged debt might not appear on your credit report as being discharged. If you notice a discharged debt is incorrectly categorized on a credit report, notify the credit bureau that produced the report and ask that the error be corrected. Each year, you can obtain a free credit report from the three major credit bureaus (Equifax, Experian and TransUnion) through annualcreditreport.com.
Fortunately, if you handle your credit responsibly after completing the bankruptcy process, the impact of the bankruptcy on your credit score will fade over time. You may even see improvement in your credit score within 12 months of a bankruptcy cases being wrapped up.
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Lawyers in 2 states sanctioned over association with national bankruptcy law firm – ABA Journal
Posted: at 6:10 am
Ethics
By Debra Cassens Weiss
February 14, 2022, 1:59 pm CST
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Updated: Lawyers in Iowa and Virginia have been sanctioned for their association with a national bankruptcy law firm accused of using high-pressure tactics to sign up clients.
Dubuque, Iowa, lawyer Christopher Soppe was reprimanded by the Iowa Supreme Court in a November 2021 order for his work with the bankruptcy firm. The reprimand included a July 2021 reprimand letter sent to Soppe by the Iowa Supreme Court Attorney Disciplinary Board.
The reprimand letter warned bankruptcy lawyers about their ethical responsibilities when working with the Chicago-based firm, which does business as UpRight Law and Law Solutions. The Iowa Capital Dispatch published a story on the reprimand last week.
In Virginia, lawyer John Carter Morgan Jr. of Warrenton, Virginia, was suspended from law practice for one year in connection for his work for an UpRight Law client. The Fauquier Times covered the January 2022 suspension order by a three-judge panel in Fauquier County Circuit Court in a story last week.
UpRight Law uses nonlawyers to screen callers, determine what type of bankruptcy suits them, send out fee agreements and accept retainer fees, according to the Iowa Supreme Court Attorney Disciplinary Board. New clients are then assigned to partner attorneys in states where the clients reside.
The Iowa reprimand alleged that UpRight Law was slow to process refunds. The Virginia case that led to Morgans reprimand involved a Car Custody Program that used the sale of clients encumbered cars to pay legal fees.
UpRight Law said in a statement it is under new ownership, and it has made significant improvements to all of its client systems.
The statement said the Iowa matter was based on a series of unsubstantiated allegations, and the Virginia case relates to events that happened more than six years ago.
UpRight Law also denied using high-pressure sale tactics. The reference to such tactics was made in a 2018 bankruptcy court decision, and the description came from a training manual that was never used, the statement said.
UpRight Law operates in nearly every state and the District of Columbia. The Iowa Supreme Court Attorney Disciplinary Board first learned of UpRight Law when a complainant said she called the bankruptcy firm in March 2019. She was told that the law firm needed her credit card for its files, but she learned a few days later that she had been charged $500 without authorization, she alleged.
She requested a refund March 4, 2019, but was told that UpRight Law could not process it until mid-May. She didnt actually receive a refund until July 12, 2019, which was a wait of 92 days, the disciplinary board said.
The Iowa attorney general conducted an investigation and found that several Iowa residents had requested refunds from UpRight Law and did not promptly receive them. One UpRight Law client said that, when she threatened to call the Better Business Bureau, UpRight Law responded that it was not scamming anyone, and it does not specialize in giving refunds. We file bankruptcies.
The investigation found that only one Iowa attorney registered an IOLTA account in connection with UpRight Law. Soppe was not that attorney. UpRight Laws client funds were handled and managed by accountants and lawyers in Chicago, and Soppe didnt have access to or oversight for that account, the July 2021 reprimand letter said.
Soppe declined comment when contacted by the Iowa Capital Dispatch.
In Virginia, Morgans suspension stemmed from a sanction issued by the U.S. Bankruptcy Court for the Western District of Virginia in February 2018. Morgan was fined $5,000 by the court and suspended from practice before the court for 18 months. UpRight Law and its principals were sanctioned $250,000, and the law firm was suspended from practice in the court for five years, according to the bankruptcy court opinion, a Bloomberg Law story and a U.S. Department of Justice press release.
The bankruptcy court partly focused on an UpRight Law program in which clients could pay their legal fees by surrendering their encumbered cars to an Indiana towing company. The company claimed the right to keep the cars from the lien holder until towing, transportation and storage fees were paid. If the towing company sold the vehicle at auction, despite a security interest by the auto lender, it used the money to pay the bankruptcy fees.
Morgan had responsibility for filing a case in which his client was put into the car program, the bankruptcy court said.
Local attorneys joining multijurisdictional law firms as local or limited partners cannot be both tall and short, the bankruptcy court said. An attorney cannot claim to be a partner in the firm and file cases with the court as lead counsel, but yet claim no responsibility for what happens in the main office on the files the attorney decides to take.
The court also faulted Morgan for allowing his wife, his nonlawyer assistant, to meet with the client and review the bankruptcy petition and schedules. The filings in the case of the complaining client were replete with errors, the court said.
Morgan told the Fauquier Times that he has not been a limited partner with UpRight Law since 2016. He said he counseled hundreds of people referred from UpRight Law and filed 63 bankruptcy cases as a result.
UpRight Law said in its statement its improvements have provided greater transparency to clients, reduced refund times, allowed clients greater accessibility to firm representatives, and have overall resulted in significantly improved client experiences.
In the Iowa case, the statement said, ethics authorities didnt disclose the identities of the complaining clients and didnt supply details of their allegations. Nor were there any hearings with respect to the allegations, the statement said.
UpRight Law also said every partner attorney has oversight over client funds.
Every partner attorney has complete transparency into the process and the ability to dictate the final terms of the management of client funds, consistent with the terms of their partnership, the statement said.
With respect to the Virginia case, UpRight Law ended the car program in November 2015 and has not operated any similar program since then.
The sanction in the Virginia case was appealed and ultimately settled, the statement said.
UpRight Law is an innovative law firm that has helped approximately 100,000 people and families since 2014 obtain a fresh start through the bankruptcy process, the statement said. Many of of these people may have otherwise been left without the help they desperately needed. Over that time frame, UpRight Law has been the most prolific filer of consumer bankruptcies in the nation. Like other law firms and lawyers, UpRight Law is not infallible and has previously acknowledged that its participation in the Car Custody Program was a mistake. However, those events are now more than six years removed, occurred under different firm ownership, and UpRight Law has made countless improvements to better serve its clients. We look forward to continuing to serve those clients and working with our dedicated partners across the nation.
Updated at Feb. 14 at 4:50 p.m. to include statement by UpRight Law.
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A Wave of Bankruptcies and Foreclosures Appears to be Building – Kiplinger’s Personal Finance
Posted: at 6:10 am
Economists and professionals in the restructuring sector of business and real estate have been anticipating a distressed economy for the past 18 months. Thus far they have been wrong.
The public is just plain confused. Many people today dont trust their politicians, their news sources and, surprisingly, not even their health care providers and professionals. This lack of trust, coupled with the pandemic-driven mandated way in which many employees work remotely, has caused many people to reassess their lives and the location from which they are willing to provide their services.
Many employees holding mid-and upper-level jobs will opt to permanently work remotely and never return to the office. This shift in the way people will work in the future will have a profound effect on many aspects of our economy, including the ability of landlords to keep commercial spaces leased.
COVID-19, the Delta, Omicron variants and now the highly contagious BA.2 variant have caused millions of workers to be unavailable for work, either remotely or otherwise. This has created a serious supply and distribution chain disruption. This problem is caused in part by manufacturers not being able to supply component products due to worker disruptions in factories. Add to this supply shortage the fact that personnel disruption in the transportation and delivery of products caused by COVID (i.e., the shortage of truck drivers) and we can clearly see the full picture of the disruption in the supply chain.
The threat of a substantial new round of tariffs, embargoes and other economic sanctions based on the political climate creates further risks of the U.S. becoming a distressed economy. In addition, there is a looming threat of high inflation. On the positive side, until recently the stock market and overall economy were generally clicking along at a solid and positive pace. The stock market doesnt always accurately represent what is really going on in the economy, but recent market volatility may be a harbinger of troubled times ahead.
Will the accumulation of these factors ultimately cause the predicted distressed economy? No one knows for sure, but in analyzing the situation it may be instructive to look at the issues that have prevented the anticipated downturn.
Since the pandemic began, regulators have not been pressuring banks to take action with respect to defaulted loans. Historically, banks have been willing to kick the can down the road with respect to defaulted loans if they could do so without significantly impairing the accounting value of the loans with respect to the banks capital requirements. Regulators current attitudes have allowed the banks to do just this.
While the regulators laissez-faire attitude has had a definite positive short-term effect on the economy, at some point the regulators know that the effect of their actions will cause banks to have misleading financial statements.
It is not likely that regulators behaviors will change before the midterm elections later this year. At some point, however, they will have to stop allowing banks to avoid classifying loans. Otherwise, they risk allowing the banking system to continue to mispresent the value of its loan assets, with all the risks of that situation impacting the creditability and stability of the banking system.
It is my view that when the bank regulators change their position with respect to their treatment of defaulted loans, an anticipated tsunami of real estate foreclosures and bankruptcies will be upon us.
Interest rates have historically had a substantial impact on the economy, especially the real estate sector.
The Feds have kept interest rates at almost zero to support the economy. Now, however, the specter of high inflation will almost certainly bring an end to near-zero interest rates. Annual inflation during 2022 is projected to be close to 7%. The Fed has already announced its intention to fight inflation by raising interest rates as early as in March. The issue is not whether interest rates will rise. Rather, it is by how much and when.
Rising interest rates hurt individuals in many ways:
The re-emergence of COVID in the form of the current variants has all but destroyed the timetable for societys return to normalcy. There is no reliable way to predict the effect of this re-emergence on the psyche of the country. It is predictable, however, that this re-emergence will negatively impact the economy, and will further delay a return to normalcy.
In fact, it is likely that normalcy, as it existed pre-pandemic, will never fully return. Trends like the shift of consumers primarily conducting their shopping online will have a negative effect on brick-and-mortar retail sales. The need for retail space seems poised to continue to decline even more than it has already. This problem has been accelerated by the pandemic.
Owners of shopping centers and commercial buildings are girding for the rash of vacancies that are most assuredly on the horizon. Individuals would be well advised to assume inflation and higher interest rates are on the near horizon and should act in any way possible to mitigate the harm to them from the looming dual threat. It is uncertain how federal, state, and local governments will react to the situation.
Uncertainty is the enemy of business, and it is clear we are facing uncertain, unpredictable times. The publics general perception of all of this is yet to be seen. There is much distrust by the people of our nation. These factors will combine to create a perfect storm for companies and real estate investors to experience increasingly distressed financial times.
The best advice we can offer is for entities to deal with their distressed assets early on.
The general public will be looking at inflation and rising interest rates and will react accordingly. The earlier people and businesses accept and respond to these changes, and react appropriately, the more likely it is that Chapter 11 bankruptcies can be avoided. This not only increases the chances that companies can resolve their financial issues without resorting to bankruptcy, it often reduces the need for employee layoffs.
Founder and President, Distressed Capital Resources LLP
William N. Lobel is the Founder and President of Distressed Capital Resources LLC, a company that has brought together virtually every resource available to assist borrowers with financially distressed real estate or businesses, with the goal of maximizing a borrower's leverage and options in order to successfully resolve that borrower's financial issues.
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A Wave of Bankruptcies and Foreclosures Appears to be Building - Kiplinger's Personal Finance
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