Paul Bilzerian, convicted felon and father of controversial poker player Dan Bilzerian, used his son’s cannabis business to hide money he’s owed the U.S. Securities and Exchange Commission (SEC) for decades, federal investigators allege.
The elder Bilzerian and Ignite, the aforementioned cannabis business, along with Bilzerian’s long-time accountant, Scott Rohleder, were indicted Friday by a grand jury in Los Angeles for fraud. Paul Bilzerian, who has claimed poverty for years, is said to have used Ignite to hide part of the money he’s owed the SEC since the early 1990s.
Bilzerian’s Facing Legal Issues
Paul Bilzerian, 74, a former corporate takeover specialist, was convicted in 1989 on nine securities related counts, and was sentenced to four years in prison. The SEC then filed a civil suit against the white-collar criminal, and a judge, in 1993, ruled in favor of the SEC and ordered Bilzerian to disgorge $33.1 million in profits plus interest from takeover attempts.
The amount owed, with interest, came to $62 million, but Bilzerian never paid it back, and has long claimed that he not only doesn’t have the money, but has been broke. Interest has continued to pile up over the years, and now the feds are seeking $180 million.
But the Bilzerian’s are now facing even more issues as federal agents claim that Mr. Bilzerian isn’t broke and instead dodged paying the judgment while running the failed Ignite cannabis business.
“This indictment alleges a long-running pattern of criminal behavior to avoid a regulator’s judgment, mislead investors, and cheat the IRS,” said United States Attorney Martin Estrada. “My office will continue to use all tools available to protect investors and ensure the security of our nation’s economy.”
Did Dan Bilzerian Make His Money Through Poker?
Dan Bilzerian, a former GGPoker ambassador, has long claimed to have won over $50 million playing poker in high-stakes private games. That claim has been disputed by some members of the poker community, and many have alleged he inherited his wealth from his father, perhaps the money owed.
Other poker pros, however, have suggested Bilzerian did make millions at the poker table. Chance Kornuth told a story about playing with Bilzerian in 2013 in which the Chip Leader Coaching founder came away impressed with his game. He even helped Bilzerian prepare to face Alec Gores, the billionaire Bilzerian claims to have won millions off in heads-up private poker games.
The social media playboy left GGPoker in June 2022, and referred to poker players as “f*****g nerds” following a bitter exit from the poker world. He’s been on an anti-Semitic crusade on social media recently, adding to his reputation as a misogynist.
According to the indictment, Paul Bilzerian, Ignite, and Rohleder allegedly conspired to impede the SEC from collecting on the judgments through shell companies from December 2018 to September 2024.
Dan Bilzerian wasn’t specifically mentioned in the indictment, but the indictment instead referred to Paul Bilzerian’s son as “D.B.,” who was listed as the CEO of Ignite.
Paul Bilzerian, who left the U.S. years ago and has been living in St. Kitts and Nevis, has fought the SEC for years, seemingly doing everything in his power to avoid paying off the now nine-figure debt. His claim of having no money has long been disputed by the SEC, but he’s apparently avoided opening bank accounts in his name.
“What bank accounts? Do you think I’d be stupid enough to have a bank account?” he told the Wall Street Journal in 2014.
The indictment backs up the claim that the elder Bilzerian indeed doesn’t have any bank accounts. But the Justice Department alleges he’s been funneling millions of dollars into Ignite International Brands Ltd. the past six years with the aid of his accountant, Rohleder. Prosecutors say although Dan Bilzerian is the listed CEO of Ignite, Paul Bilzerian was running the Canada-based company behind the scenes.
Paul Bilzerian and Ignite were charged Friday with defrauding the United States and wire fraud. Rohleder, who served as the company’s chief financial officer, faces charges of conspiring to commit wire and securities fraud and assisting with the preparation of false tax returns. Dan Bilzerian, however, has not been charged with any crime.
The poker player recently listed his mansion for sale in Las Vegas, and he’s seeking $25 million. He has over 30 million Instagram followers.