Galfond sues BlueFire Poker co-founder
Friday, 21 September 2012
Bluefire Poker was thought by many as the “Phil Galfond Training Site” so it came as something as a surprise when the high stakes legend resigned from the company late last year.
“It’s very hard to walk away from something I helped build from the ground up, but the most difficult aspect of this is the fact that I’ll miss the community… the members and my fellow coaches,” Galfond wrote at the time in a somewhat cryptic post on Two Plus Two. “Please know that it was a very difficult decision that I struggled with for a long, long time. I'm sorry that I can't elaborate further.”
It has now become somewhat clearer as to why Galfond did walk away. The online pro has sued his former business partner William F. Murphy, claiming that he has failed to pay him his share of profits from the business.
According to Courthouse News Service, Galfond claims that “he was to receive one-third of the profits from the site an ownership interest of up to 38.33 percent after vesting.” Galfond says that he was paid more than $179,000 for the first year, and more than $238,000 for the second but nothing for his third. He also claims that he was given no accounting records, financial statements or tax returns.
The 27-year-old is seeking damages for breach of contract.
"Blue Fire has been immensely successful, having thousands of members who pay an initial enrollment fee of $100 in addition to a subscription fee of $30 per month," the complaint states. "Upon information and belief, the defendant Murphy has misappropriated and converted to his own use and possession the assets of MGH."