The Securities and Exchange Commission (SEC) is turning the heat up on poker legend Doyle Brunson. Wallace Nakano, the operator of Brunson's namesake online poker room, has been subpoenaed by the SEC, but has thus far refused to testify. The SEC has subpoenaed Nakano in connection with its investigation of a dubious takeover bid issued by Brunson and other investors in the middle of last year.

In early July, the “Texas Dolly" and an anonymous group of investors made an unsolicited bid to acquire the World Poker Tour (WPT). The $700 million bid price was approximately twice the WPT's market value at the time. Brunson's inflated bid led the WPT's stock to skyrocket 66 percent the day the bid initiative was announced. This, in addition to the manner in which the WPT bid was declared publicly and ultimately allowed to expire, invoked the suspicion of the SEC.

In December, the SEC opened an investigation against Brunson and his online poker site, DoylesRoom.com. The SEC is examining whether the 72-year-old poker celebrity overstepped security laws with his highly-publicized bid. Specifically, the SEC is probing whether Brunson employed deceptive tactics in exchanging securities, and whether he made false statements in regard to the offer.

The SEC wants to grill Nakano for information on Brunson's WPT bid. Two subpoenas have so far been served to Nakano; however, according to Nakano's lawyer, he does not plan to testify, claiming that the subpoenas were incorrectly served and were thus invalid.

Source:  Poker777 Staff

Sunday, 05 February 2006