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News > Casino News Archive > Dec 2005 > U.S. Probes Fraud in WPT Takeover Offer |
27 Dec 2005
U.S. securities regulators said Friday that they were formally investigating U.S. poker champion Doyle Brunson's unsolicited $700-million offer in July to buy WPT Enterprises Inc., a Los Angeles-based gaming entertainment firm. News of the bid, which was nearly double the company's market value at the time, sent WPT's stock soaring more than 50% in one day to an intraday high of $29.50.
The SEC also said last Friday that it filed an action in federal district court in Fort Worth, Texas to enforce subpoenas issued to attorneys David Chesnoff and Chaka Henry, whose Las Vegas firm Goodman & Chesnoff represented Brunson in his offer. Soon after delivering the offer, the firm withdrew from the matter. The SEC said it was investigating whether Brunson's offer and its publication violated anti-fraud laws.
"We're confident that after the investigation, it will be seen that the offer was a sincere offer and that there were no laws violated," Brunson's attorney Alan Isaacman said. Shares of WPT, which owns the World Poker Tour television show, closed at $6.23 on Friday, unchanged for the session. The price rapidly fell after the company said it wasn't able to reach Brunson or his attorneys for further information on the bid, according to the Securities and Exchange Commission. The offer later expired.Related News:
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