According to a report that surfaced on eGamingReview(EGR) on Monday, Avoine, a subsidiary of Madeira Fjord that purchased Absolute Poker in late 2006 or early 2007, claimed it did not know about any illegal activity that led to the site’s founders being indicted on Black Friday. EGR quoted an Avoine executive as saying, “During the period of 2007 to the present, neither Avoine nor its management knew of the allegedly wrongful conduct upon which the plaintiff’s forfeiture claim is predicated.”

According to EGR, Avoine sold the room to Absolute Enterprises in 2007. In its response to the U.S. Department of Justice’s Black Friday civil forfeiture complaint, Avoine lawyers revealed, “Norwegian tax authorities have asserted a claim in the [Madeira Fjord]bankruptcy case alleging that, based [among other factors] on Avoine’s acquisition and disposition of the [Absolute Poker] assets and subsidiaries, [Madeira Fjord] is obligated to pay taxes totaling in excess of 175 million Norwegian Krone.” The legal team has argued that this tax liability should be thrown out.

Absolute Poker and its sister CEREUS Network site, UB, are at a standstill in paying back U.S. players following their exile from the American market on Black Friday. In an October article here on PocketFives, an Absolute Poker spokesperson told us, “As previously stated, the distribution of funds to our U.S. players remains our highest priority. However, we are still in discussions with the DOJ in order to facilitate player payments and, consequently, can make no further comments at this time. We will provide an update at the appropriate time.”

Last May, MSNBC published an article asserting that Madeira Fjord was set to file for bankruptcy. About three weeks removed from Black Friday at the time, Absolute Poker officials responded by saying, “The apparent confusion over this issue stems from the fact that Blanca recently informed a debt holder, Madeira Fjord, that it was terminating debt payments to, and its relationship with, them. As a result, Madeira Fjord apparently filed a notice of bankruptcy in Norway. This notice has no negative impact upon Blanca, the operating company, or its brands.”

Blanca Games currently owns Absolute Poker and UB. It appears to be in shambles financially, as in December, two reliable sources close to PocketFives told us that players owed money by either site could expect to receive 15 to 20 cents on the dollar, assuming a repayment plan is adopted. PocketFives Co-Founder Adam Small, who broke the news in our Poker Sites forum, analyzed, “It does seem like they’re legitimately closing shop and getting what’s left of their funds paid out soon.”

There has been no update on the prospects of players being reunited with their finances since December. Meanwhile, last week, the poker traffic ranking site PokerScout reported that the CEREUS Network has shed 99.8% of its cash game traffic since this time last year, one month prior to Black Friday. Full Tilt Poker, the only other site not to repay players, had its license formally revoked last year and is now idle.

The most recent update on Absolute Poker and UB from the sites’ licensing body, the Kahnawake Gaming Commission, came in mid-October: “Over the past several weeks, we were advised of a potential solution prepared by Blanca and its representatives establishing a process to liquidate Blanca’s assets and distribute proceeds to players. We understand that this process has been presented to [the DOJ]for consideration and approval.” No further information on the proposed liquidation plan has been given since.

In mid-December, Absolute Co-Founder Brent Beckley pleaded guilty to conspiracy, telling a judge, “I knew that it was illegal to deceive the banks.” He also admitted that he knew “it was illegal to accept credit cards so that customers could gamble on the internet.” Sentencing is scheduled for next month; what his punishment will be remains to be seen.

Stay tuned to PocketFives for continuing coverage of the Black Friday fallout.