Everleaf Gaming Director Arrested for Misappropriation of Funds

A director of Everleaf Gaming has been arrested in Malta on a number of charges related to failing to pay players roughly €800,000.

Michael Zwi Oros was nabbed after extensive investigations carried out by both the Lotteries & Gaming Authority (LGA) and the Malta Police Economic Crimes Unit. A Swedish national, the 33-year-old Oros was charged with misappropriation of funds, failure to pay gaming license fees and taxes, and other charges related to failing to properly disclose information to the LGA.

Oros posted bail by depositing €10,000 and personally guaranteeing another €10,000. A statement by the LGA indicates that he is not allowed to leave the island of Malta. Another Everleaf director, Jean Pavili, is still being sought.

"Our key objective is to recover the funds owed to the players," said LGA Executive Chairman Joseph Cuschieri. "We are committed to ensure that player funds are protected at all times and to this effect, the LGA will be taking concrete measures to strengthen its player protection mechanisms well beyond the benchmarks in Europe and other jurisdictions."

The LGA suspended the igaming licenses of Everleaf Gaming on July 26, 2013 amid complaints from players that withdrawal requests were not being honored. Following the license suspension for “a number of irregularities,” many players voiced their displeasure toward the LGA on online poker forums, claiming that the licensing authority had waited much too long to take action.

The LGA stated that most of the players had been paid and that non-payment complaints were being made on the part of affiliates masquerading as players. That statement was pooh-poohed by a number of players who estimated that only about 3% of Everleaf cashout requests had been processed.

Everleaf retreated from the U.S. market in February 2012 after $27,000 was seized from a payment processor. The U.S. DoJ apparently sent the company a cease and desist order four months earlier. U.S. players were subsequently given three cashout options, but all required establishment of a bank account outside of the U.S.