Federal judge tosses remaining FBI evidence against Paul Phua

A Nevada federal court has dismissed the bulk of the remaining evidence against accused illegal online betting operator Wei Seng ‘Paul’ Phua.

On Tuesday, US District Judge Andrew Gordon effectively pulled the legs out from under prosecutors by barring them from using evidence obtained by FBI agents under highly suspect circumstances. Gordon’s ruling followed a two-hour hearing in which prosecutors attempted to preserve their already shaky case against Phua, a Malaysian businessman known for his high-stakes poker play.

Phua was one of eight individuals arrested last July for allegedly operating an illegal online sportsbook out of three luxury villas at Caesars Palace in Las Vegas. But the justification supporting the government’s search warrants was called into question after the FBI’s tactics were revealed.

Believing something illicit was going on behind closed doors, the FBI convinced Caesars to shut off the internet connections to the villas. When Phua & Co. called for tech support, the FBI sent in agents equipped with hidden body cameras. The FBI used this video evidence to obtain their warrants, despite senior justice officials warning that the chicanery raised serious Fourth Amendment issues.