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Paul Leggett Video Interview Produced by Tokwiro EnterprisesPart 3 – The UltimateBet ScandalTokwiro Enterprises Video Page of Paul LeggettPaul Leggett Tokwiro Video on YouTube pt. 1Paul Leggett Tokwiro Video on YouTube pt. 2Paul Leggett Tokwiro Video on YouTube pt. 3
Question #1
Susan
– Alright. We’re going to fast forward to 2007. The Kahnawake GamingCommission has issued its findings on the Absolute Poker Scandal, you’ve thrown out theold management, and now you and Joe are in your new positions. There have beencomprehensive reforms you’ve done. It would appear you were doing everything right,and now we’ve discovered another scandal at the other company we have been alludingto, which is UltimateBet. I gather that this cheating incident was different than the one atAbsolute Poker. What was this one about?
 Paul L
– The allegations were involved on account with the username NioNio. Theyaccused this account of having an unfair advantage because of the results it had achievedwhile playing poker on UltimateBet. So we immediately began the investigation, weimmediately contacted the KGC within 24 hours, and started a very thorough and longinvestigation to determine exactly what had occurred.
Question #2
Susan
– Now remind us, when did Tokwiro buy UltimateBet?
 Paul L
– We bought UltimateBet at the same time as Absolute Poker, in October 2006
Question #3
Susan
– So how long had this cheating been going on?
 Paul L
– The cheating dated back, at this point we understand that it dates back until2004.
Question #4
Susan
– How come it was only being discovered now?
 Paul L
– Its complex. But basically because these people worked for UB prior to usacquiring it.
Question #5
Susan
– So another inside job?
 Paul L
– Another inside job from the previous owners. It’s just extremely unfortunate andshocking, but what we learned was that the perpetrators were able to do this because theywere involved in the operations of UltimateBet.
Question #6
Susan
– Lets be clear about timelines. Tokwiro acquired UltimateBet in October 2006. Itwasn’t incorporated in Quebec until June 2007, so who owned it in 2006?
 
 Paul L
– The companies were purchased by Joseph Norton in October 2006. Then theassets and the businesses were held in trust until Tokwiro Enterprises could arrange, or make financial arrangements and setup the Corporate Entity. Tokwiro Enterprises wasfiled in April 2007 and it was officially registered in Quebec in July 2007.
Question #7
Susan
– What was Blast-Off?
 Paul L
– Blast-Off is basically the company that held the asstes in trust for TokwiroEnterprises until it was established.
Question #8
Susan
– In any case it’s all Joe Norton. Joe Norton bought them. Joe Norton setupTokwiro. Joe Norton put these companies into Tokwiro.
 Paul L
– Yes. These types of companies that are used for the transition of ownershiphappen a lot and this is just one of these instances.
Question #9
Susan
– Lets go back to the UltimateBet cheating. Tell me a bit more about how you became aware of it.
 Paul L
– Again, we were alerted to it by the players and we then immediately started aninvestigation. We started to look into it and after thorough investigation we started torealize that the statistics of these players were, that this player was cheating were indeedabnormal outside the statistical probability that a great poker player could achieve. Soimmediately or very early on we were able to identify something was wrong. So then our investigation expanded and it started to include multiple accounts. We started to getexperts involved in helping us analyze the data. Then in February (2008) we were able toidentify, like we were convinced that the same kind of cheating was occurring. We wereable to identify the tool, or the software that was used in order to perpetrate the cheating.
Question #10
Susan
– When Tokwiro bought UltimateBet, what would the normal due diligence be?
 Paul L
– Eworld Holdings was the company that owned the brand of UltimateBet whenwe purchased it. Excapsa Software Services was a publicly traded company that providedsoftware to UltimateBet and I guess (Eworld) was a partial owner of what we bought.
Question #11
Susan
– So a publicly traded company was actually involved in a cheating scandal?
 Paul L
– Well the company was public when the cheating occurred and the peopleemployed by a publicly traded company were involved. So during the due diligence process we relied heavily on those public filings and statements and records to due a lotof due diligence. The company had been audited several times when it went public. Werelied pretty heavily on that, but of course we did our own due diligence to the softwareand to the financial health of the business, things of that nature. But there are millions of lines of code. This is a major, an online poker business the size of UltimateBet has amajor, major suite of software and it’s millions of lines of code that would have to be
 
audited. Unfortunately the due diligence process did not catch it. I don’t think it’s the firsttime something like this could pass a due diligence process.
Question #12
Susan
– Do you have any rights or claims against the company that sold youUltimateBet?
 Paul L
– In my opinion, and our litigators opinion, Absolutely we do. So we areaggressively pursuing all legal options that we have right now.
Question #13
Susan
– What was it like when you discovered this was going on? How did you feel, youand Joe?
 Paul L
– It was an extremely upsetting time but Joe and myself are very determined people. We were ready for the challenge. We knew it wasn’t going to be easy, specificallywith the Absolute Poker scandal that just occurred but we were confident in the fact thatnobody from our enterprise had anything to do with this whatsoever. We’re going makesure that we understood exactly what happened, that the players were going to get their money back and we would make sure that those responsible are held accountable.
Question #14
Susan
– What happened?
 Paul L
– Essentially the perpetrators were able to use software code that was on theservers. It was placed on the servers long before we ever bought the business, in order toview hole cards during real time. In this instance it is in fact a superuser account wheresomebody could log in and view hole cards during real time. But it was a fairly complexscheme where the perpetrators were able to log in with one account and see everyone’scards at the table. Then they would log in with another account and use that informationto their advantage and win the money. They would try to obfuscate and cover-up andmake it less obvious by changing usernames for these accounts frequently, so the publicwouldn’t see how much they were winning, so it wouldn’t become immediatelyidentifiable. Then they would move the money around the site in a complex web of transfers from player to player. In poker you are able to transfer money to your friendsand things like that. So they moved money and exploited their knowledge of the securityof UltimateBet. They moved the money around and withdraw the money and get themoney off the site.
Question #15
Susan
– So how many people were there involved?
 Paul L
– Well there was, from everything our investigation our report determined onemain perpetrator that all of the cheating links back to, but there was definitely other  people that were needed in order to move the money around. It’s hard to say who knewexactly what aside from the main perpetrator but there’s definitely a long list of suspectsthat may have had knowledge of what was going on.
Question #16
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