Daily fantasy-sports site Fantasy Aces LP, which last month filed for bankruptcy while owing players more than $1 million, has hired a new lawyer as questions emerge about the site’s handling of funds in players’ accounts, the Wall Street Journal reported on Friday. Robert J. DeGroot, who describes himself as a criminal defense lawyer, said that he was hired last week by Fantasy Aces to respond to questions from New York’s gaming regulator about the player accounts. Players had an estimated $1.3 million deposited in Fantasy Aces accounts when the company filed for chapter 7 bankruptcy liquidation on Jan. 31 with just $3,539 in cash on hand, according to court documents. The bankruptcy came the same day that the New York State Gaming Commission sent a letter to Fantasy Aces seeking information about the player accounts, which under state law must be kept separate from a fantasy-sports company’s other funds.
