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Cake Poker just can’t seem to stay out of the poker headlines over the past year, and none of the news has been very good for the once promising online poker network. According to pokerscout.com, Cake Poker is being sued by early contributors to the site claiming Cake Poker has not compensated their early work with the company.

A notice of Civil Claim was filed in British Columbia, Canada by Ryan Bennett and Francois Piette who according to Pokerscout.com are alleging “that they developed groundbreaking concepts such as multi-level marketing (think Refer-A-Friend) and the use of photo-real images on a poker site. These ideas were shared with the principals of Yummy Interactive, who went on to form the Cake Poker Network.”

The pair state they had an agreement for a 20% share of the company, but received only a small fraction of their promised compensation.

As PokerScout points out, the real revelation may be the corporate structure outlined in the Civil Claim, since US-friendly poker rooms –that operate outside of US law—are normally impossible to crack to even see who the official owners are and the corporate structure for fear of prosecution.

PokerScout quotes the plaintiffs as saying: “a British Columbia corporation was going to be incorporated [which] would then be rolled into an offshore entity which would then operate and market” the project. They were told this was “necessary because you can develop online poker software in British Columbia but you cannot operate an online poker site from British Columbia.”

PokerScout has also posted a copy of the Civil Claim.