Here is a recent communication that went out from AP to players:
Dear AP Player:
I am 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.
As many of our players are aware, there has been a security breach in our system that allowed unlawful access to player information that resulted in unfair play. I am writing to you today to let you know what we know so far in order to set the record straight, and to assure you of AP’s commitment to player security. I am sure that this letter will not address all of the questions and concerns you may have, nor will it extinguish the heated discussion surrounding this issue. At this point, our intention is to let you know all we can disclose and to assure you of our continued efforts to keep you informed as best we can as the investigations continue.
We deeply regret this situation has occurred. A breach in security in online poker is serious and of great concern to players and the industry worldwide, and this particular situation has been the subject of debate within the poker player community and in the media, giving rise to the creation of several websites and hundreds and hundreds of comments, opinions, and theories of what occurred â€“ some of which are accurate, and some that are not.
Like you, I have not been happy that during the initial stage of our investigation, AP has not been more forthcoming in providing a timely or comprehensive explanation on this matter, giving rise to anger, suspicion, and concern on the part of our valued customers. I hope that our customers can appreciate that this remains an incredibly complex and sensitive issue, and I want to give you my strongest possible assurance that we will be as forthcoming as possible on how this breach occurred and what we are doing to remedy the situation.
What We Know and Actions We Have Taken
AP was notified by a customer that a possible cheating incident occurred during a recent tournament, and in response forwarded players’ hand logs. This disclosure of the hand logs prompted our customers to determine that a more serious security breach had occurred. We immediately launched an internal investigation and also requested a formal audit by Gaming Associates, an acknowledged world-wide expert in audits, interactive gaming tests, and information security.
Based upon our preliminary findings, it appears that the integrity of our poker system was compromised by a high-ranking trusted consultant employed by AP whose position gave him extraordinary access to certain security systems. As has been speculated in several online forums, this consultant devised a sophisticated scheme to manipulate internal systems to access third-party computers and accounts to view hole cards of other customers during play without their knowledge. As this consultant was aware of the details of our fraud detection process, the likelihood that the scheme would be uncovered through our normal procedures was minimized. We consider this security breach to be a horrendous and inexcusable offense.
We will pay for all losses suffered by the affected players as soon as our audit is finished and the amounts are determined. Although we are in the process of attempting to recover all the winnings of this consultant, any unrecovered losses of affected players will be paid by Absolute Poker so that all affected persons will be made whole.
We are still investigating whether the consultant was acting alone or in concert with others, and it appears at this time that all account holders are innocent of collusion and were unaware of any wrong-doing by the consultant, who was immediately terminated. We continue to investigate this matter aggressively, and all of these preliminary findings are subject to the audits currently underway. We have recently uncovered additional accounts used by the consultant that have not been publicly reported. So as to not compromise the investigation, we are not releasing the names of these additional accounts at this time, and will contact these affected customers individually.
The specific allegations of unlawful activity are being investigated both by AP and by the authorized authorities, including the Kahnawake Gaming Commission. We will continue to actively cooperate with these authorities in full compliance with the Regulations Concerning Interactive Gaming. In addition to our own investigation and the audit by Gaming Associates, we have also submitted to an audit by the Kahnawake Gaming Commission.
Please be assured that we have corrected the problem that allowed the system to be unfairly manipulated. We are working furiously to increase the safeguards within our systems. While we are satisfied that our systems are secured, we realize that our security systems must be continuously monitored and enhanced.
Without question, this incident has been unfortunate for all concerned, and we will emerge as a stronger company. I realize it will take some time and much more information for AP to re-earn the trust and confidence of our customers who are in doubt of our commitment to the highest levels of security, privacy and integrity. As we move to address and correct this situation, our valued customers have played a vital role in uncovering this scheme through various online forums and have become an active part of the solution.
With my full sincerity, I thank you, and I promise to keep you updated as we bring this situation to a close.
How do you go from “This is literally a geek trying to prove to senior management that they were wrong and he took it too far” to “a high-ranking trusted consultant employed by AP whose position gave him extraordinary access to certain security systems”? Absolute has done nothing but lie, lie, and lie some more on this. Every few days more tidbits come out that confirm that what the poker community has speculated is indeed true.
While it hasn’t been officially stated in Absolute’s email or any sort of press release the word from BRSavage on P5’s is that this “high-ranking trusted consultant” is AJ Green the number two guy at Absolute and the guy running the day to day operations there while numero uno guy Scott Tom is in Panama. This all makes sense since only a guy in charge of investigating himself would have the cahones to approve some of Absolute’s previous statements.
BRSavage also has it from a source at Absolute that AJ Green won’t be named and likely won’t even be prosecuted because he has too much dirt on Absolute and they’re afraid of the shitstorm he could create if they pissed him off. He has been removed from the company and Tom Scott will be removed from a management role for an unspecified period of time. Nat Arem sums it up pretty well:
Okay, the reason they will not send AJ Green to jail (or even name him at this point) is the following…
Think about how much he knows about both the money flow, ownership, other scandals, etc within AP and UB. Lots of people with heavy interests in both of those either don’t want those stories coming out or they don’t want their dirt being told to law enforcement. Basically, he has them by the balls because he has their dirt. Described at the simplest level as blackmail.
Also, I do actually believe that AP, KGC, etc will be a changed organization after this — not necessarily clean, but changed. They would never do anything this blatant again. How they ever get people to believe that they are both clean AND changed will be up to them.
I think Nat hits the nail directly on the head. If you’re basically running a leading online poker site you don’t need to steal money. You’ve likely got an amazing salary and you live in a country (Costa Rica) that has a piss-ant cost of living. The reason you steal money is because you’re an unethical asshat which means this is likely not the first shady thing he has done on behalf of Absolute. That’s certainly not laundry Absolute’s directors want aired.
Side topic: Check out Pokerati’s interview with Absolute part-owner and spokesman Mark Seif.