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Starnet Says It Won Default Judgment Against Claude Levy

Starnet is a major provider of gaming software and e-cash services for online gaming sites. Originally based in Vancouver, it moved its headquarters to St. John's, Antigua, after a raid by Canadian authorities in August.

Levy, a native of Belgium, controls numerous online gaming sites and a Web publication called Gambling Magazine.

Starnet said the Commercial Court in Mons, Belgium, entered a default judgment against Levy, Gambling Magazine and Starnet News. Default means the other party didn't show up to contest the suit.

Levy, Gambling Magazine and Starnet News were ordered to cease using the name Starnet or any name resembling Starnet and "to cease making defamatory accusations against Starnet on the Internet," Starnet said in a statement.

Violation of the orders, according to the company, will result in a penalty of 100,000 Belgian francs (about US$2,350) per day as of the date of notification of the judgment. The court also ordered Levy to publish the judgment on home pages of the Gambling Magazine and Starnet News Web sites for 15 consecutive days as of the date of notification.

In addition, Starnet says, the court gave Starnet the right to publish the judgment at Levy's expense in any two newspapers or trade magazines.

Meldon Ellis, chief executive of Starnet, said in a statement, "We are very pleased with the Court's decision and believe it reflects the high quality and integrity of Starnet's operations and all Starnet employees. We remain extremely confident in our litigation strategy and legal team representing Starnet and we will continue to work methodically through each of the legal issues the company faces."

Levy's Gambling Magazine site, however, is unrepentant today. The lead item claims that the majority of Starnet's board of directors are unhappy with Ellis and secretly offered Ellis' job to Levy!

The site also claims that the defendants in the Starnet suit were never informed that there was a hearing, and that the default judgment will be set aside. Belgian courts don't have jurisdiction in this case, the magazine alleges.

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