Nevada-based Lawsuit Against Mike Postle Dismissed For Lack of Jurisdiction

US District Court of Nevada judge James C. Mahan has dismissed an action brought by poker pro Marle Cordeiro against alleged “Stones Live!” poker cheater Mike Postle, citing a lack of jurisdiction over key elements in the case. The judgment and related opinion, dated Friday, August 14, 2020, likely ends the attempts to hold Postle civilly responsible for any of the alleged cheating activity. 

Back in June, Postle was dismissed as a co-defendant in a California case, though settlement talks between that case’s 88 plaintiffs and the other defendants, Sacramento’s Stones Gambling Hall and “Stones LIve!” show director Justin Kuraitis, are ongoing. Instead of being an 89th defendant in that case, Las Vegas resident Cordeiro opted to sue Postle -- and only Postle -- in Nevada, citing circumstances that Cordeiro and her counsel, gambling-law lawyer Maurice “Mac” VerStandig, believed brought the matter under Nevada jurisdiction.

Judge Mahan quashed those claims in his August 14 opinion, citing the three-part “Calder Test” as his reasoning for dismissal. Mahan cited case precedent in writing:

“Under Calder, the ‘effects’ test requires that the defendant allegedly has (1) committed an intentional act, (2) expressly aimed at the forum state (meaning Nevada), (3) [and] causing harm that the defendant knows is likely to be suffered in the forum state.”

However, Judge Mahan found that the claims could not be applied against Postle as claimed, inferring that Stones’ Gambling Hall parent company King’s Casino LLC might have been the more likely target defendant.

Mahan wrote:

“[P]laintiff argues that because defendant’s poker activities in California were broadcast online, it was aimed at or had an effect in Nevada, because that is where plaintiff resides and where she watched the broadcast games. Further, plaintiff argues that watching the broadcast games in Nevada ‘lured [her] into participating, causing her to be ultimately swindled and defrauded by the defendant.’ In other words, plaintiff argues that although the alleged cheating occurred in California, defendant should be subject to Nevada jurisdiction because a third party (Stones Gambling Hall) broadcast the alleged misconduct to Nevada, where she watched the games. This argument fails to consider that the defendant was a participant of the broadcast games—not the broadcaster—thus, defendant did not ‘expressly aim’ his alleged poker misconduct at the state of Nevada.”

Cordeiro filed her lawsuit in April, seeking $250,000 in damages and a jury trial, citing five causes of action against Postle over the alleged cheating activity:

• Violation of Racketeer Influenced and Corrupt Organizations Act (RICO) by using wire transmissions to cheat;
  
• Fraud for falsely claiming to be an honest player;
• Negligent misrepresentation by claiming Stones’ games were honest;
• Negligence per se by devising a scheme by which defraud by means of false pretenses;
• Negligence per se for violating the California Penal Code regarding cheating in a gambling game.

Postle filed his dismissal motion in late June.

Cordeiro’s attorney, VerStandig, told this reporter:

“The US District Court for the District of Nevada found Mr. Postle lacks sufficient contacts with the State of Nevada to be sued there, and accordingly dismissed the case. I have immense respect for the court as well as the judge who issued the ruling; it is well-written and well-reasoned. Importantly, however, the order does not speak to the merits of the case. Ms. Cordeiro and I are still reviewing the order and assessing various options.”

Postle did not respond to a request for comment regarding the court’s dismissal of the Nevada case.

Our extensive coverage of the Postlegate scandal can be viewed below for those wishing to brush up on the entire case: