In further developments in the ongoing federal indictment against businessman/poker player Paul Phua and his son, a federal judge has issued a ruling on a key piece of the case.
In a Las Vegas federal court earlier this week, Federal Magistrate Judge Peggy Leen ruled that federal agents were within their rights to conduct an elaborate plan to gather evidence in the case. At the beginning of July 2014, federal authorities cut the internet access to Phua’s villa on the grounds of Caesars Palace. Phua notified the property management and federal agents, posing as computer technicians, showed up to fix the problem on July 5. In the process of performing those duties, the federal agents allegedly uncovered a massive gambling ring centered on the World Cup being run by Phua from the villa.
In her 32-page decision, Leen stated that the undercover work by agents did not deprive Phua or others in the case any constitutional rights because they made a “free and uncoerced choice.” Leen explained this by saying that Phua wasn’t denied such things as water or air conditioning, which would have been an issue that required immediate action for comfort of life. By choosing to allow the undercover agents in to fix the internet connection, Phua was giving them free access and what they observed during their resulting investigation/repair work was allowable.
Herein lies a problem, however. Further into her decision, Leen indicates that the search warrant that resulted from the undercover operation was “riddled with mistakes and misleading statements,” including failing to inform the judge that issued the search warrant, Nancy Koppe, of the undercover trickery that led to the request. “The investigators’ suspicions that Phua was engaged in illegal sports betting…may be borne out by evidence recovered in the execution of the warrant,” Leen wrote. “However, a search warrant is never validated by what its execution recovers.”
One of the other important pieces of supposed evidence that the feds are supposed to have is that Phua ran the gambling operation as a front for the Asian crime syndicate 14K Triad. Leen stated that federal authorities have been unable to explain how they know that Phua is a member of that organization, which could affect how the case moves forward. Hong Kong and Malaysian officials have stated to the Federal Bureau of Investigation that Phua is not a member of the syndicate.
In conclusion, Leen found that the search warrant was “fatally flawed” and lacked probable cause to support the search. This could have a significant impact on the case because, if the presiding judge tosses out the evidence – computers, cell phones and other paraphernalia – because of an illegal search of the Phua villa, prosecutors have indicated that they don’t have much other evidence to move forward with the case.
Phua’s attorney, David Chesnoff, was particularly pleased in the decisions by Leen. “This is a triumph for citizens everywhere, showing that courts will enforce the constitution,” Chesnoff said to the Las Vegas Review-Journal’s Jeff German. “I’m pleased that Her Honor recognized that law enforcement must not be reckless nor omit vital information when seeking a warrant.”
The initial raid of the Phua villa at Caesars Palace on July 9 saw Phua, his son Darren and six other men arrested on illegal gambling charges. The gambling ring, which allegedly featured betting action on the 2014 World Cup in Brazil, allegedly netted $13 million from its operation. After having their bail set at $2.5 million, Phua and his son were bailed out by poker professional Phil Ivey and another unnamed poker pro pending trial. Five of the other defendants have already pled guilty, with suspended sentences provided they don’t return to the United States, while the sixth had charges dropped.
Since their arrest Phua, a noted high stakes poker player, and his son have been banned from participating in poker events while awaiting trial. A motion filed in January attempting to remove that restriction from Phua and his son was denied by Magistrate Judge Bill Hoffman, who cited that the Phuas were “a danger to the community, especially the casinos” in making his decision.
The final decision on Judge Leen’s decision isn’t set in stone, however. Federal attorneys have 14 days to file an objection with U. S. District Judge Andrew Gordon, who is the presiding judge in the case.
