Everleaf Boss Arrested in Malta

For the second time in as many months, a director of Everleaf Gaming has been arrested and made to appear before a judge in Malta to answer allegations of misappropriating €800,000 in player funds.

Austrian national Jean Pavili pleaded not guilty to the above charge and others that included failure to pay gaming license fees and taxes, failing to inform the Lotteries and Gaming Authority (LGA) upon relocating the Everleaf control system, neglecting to deposit winnings, and avoiding the disclosure of beneficiaries, Malta Today reported.

Pavili was granted bail by Magistrate Josette Demicoli after posting €10,000 and personally guaranteeing the same amount. Assets totaling €900,000 in Malta and other countries were frozen.

In late September, Swedish national Michael Zwi Oros, also an Everleaf honcho, was arrested and faced the music on identical charges. Oros was released on bail under similar conditions as Pavili. The Malta Police Economic Crimes Unit and LGA worked together in the apprehension of both suspects.

Everleaf's gaming licenses were suspended in July of 2013 after the LGA received numerous compaints from players that cashouts were not being processed. About 17 months earlier and almost one year following Black Friday, Everleaf pulled out of the U.S. market when the feds seized some $27,000 in funds from one of the company's payment processors.

The LGA was lambasted by players for waiting too long to take action. Since that time, the LGA has stated that strengthening "player protection mechanisms" is a top priority.