UEG investigated on disputes over PokerTribe’s launch

A new federal investigation by the National Indian Gaming Commission (NIGC ) into the first attempt by UEG to launch a site (PokerTribe.com) that involves its former deal with the Cheyenne and Arapaho Tribes of Oklahoma.

In an effort to launch a real-money online poker and gambling site that would serve players outside the US, the Cheyenne and Arapaho Tribes sunk $9.5 million into a partnership with UEG. The site was called pokertribes.com, featuring many promises to Open Soon, but it never did.

In short for these Oklahoma-based tribal nations, their millions got them a legal battle with the state and the federation over the proposed site, which they actually won and yet no site and the UEG consultant Fereidoun “Fred” Khalilian and other executives appeared to be living carefree.

NIGC contacted Cheyenne and Arapaho about the failed deal. A total $9.4 million was paid for a website basically and nothing came out of it, no profit. But According to Khalilian, “They (the FBI) went through all of our financials dollar by dollar,” Khalilian said. “We did nothing wrong.” 

The surprise that comes in is that UEG found another tribe of Oklahoma which has invested another $10 million. The UEG’s initial deal with Cheyenne and Arapaho was called off when the tribe’s former president was voted out.

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