SEC Probes Brunson WPT Bid

More than five months after his short-lived bid to buy World Poker Tour Enterprises, Inc. (WPTE), poker legend Doyle Brunson is being investigated by the SEC.

Brunson offered to purchase WPTE on July 8 for $700 million, causing the company’s stock price to skyrocket 50 percent. Shortly thereafter, the stock declined, as WPTE said it was unable to obtain further information about the bid, bringing up questions about its validity. WPTE shares closed Tuesday at $6.14.

The SEC alleges that Brunson may have violated anti-fraud laws. His attorneys, David Chesnoff and Chaka Henry, whose firm Goodman & Chesnoff represented Brunson, were also subpoenaed. Brunson has invoked his fifth amendment rights and has refused to testify. He has also told the law firm to withhold documents and limit its testimony, in order to uphold client-attorney privilege.

Originally published December 20, 2005