The Securities and Exchange Commission on Friday said it is investigating the actions of poker superstar Doyle Brunson concerning the $700 million take over bid for WPT Enterprises Inc. The SEC said the formal investigation is focusing on the legalities of Brunson's offer and the subsequent decision to publicize it. The WPT stock increased more than fifty percent to a high of $26.50 on July 8th after the disclosure of the offer was made public; but, quickly lost the gain once the credibility of the offer was questioned after the WPT said it was unable to reach Brunson or his attorneys. The take over offer then expired with no action from either side. WPT (WPTE on Nasdaq) stock closed Friday at $6.32.

The Travel Channel's most popular shows ever, The World Poker Tour Series, is owned by WPT Entertainment which is a part of Lakes Entertainment Inc. Lakes Entertainment is a casino operator based in Minnetonka, Minnesota. The company went public with an IPO in August 2004 at $8 a share.

The Las Vegas law firm of Goodman & Chesnoff represented Brunson and delivered the unsolicited bid to WPT. The firm then withdrew from the proceedings. According to the SEC Brunson has instructed the law firm, using the attorney-client confidentiality privilege, to withhold certain documents including backup materials with details of the offer and not to testify concerning critical details of the offer. Government regulators said on Friday they had filed an action in federal district court in Fort Worth, Texas to enforce the subpoenas issued to attorneys David Chesnoff and Charka Henry for the documents and testimony. Doyle Brunson refused to testify in the investigation and invoked his Fifth Amendment right against self-incrimination, the SEC said.

Doyle Brunson is one of the best known professional poker players in the world and holds a record ten World Series of Poker gold bracelets including two WSOP main event championships. He continues to play in major poker tournaments and on Friday he made the final table of the Fourth Annual Five Diamond World Poker Classic's WPT Championship at the Bellagio Resort in Las Vegas where he finished third to collect $563,485 in winnings. He regularly host the world's highest limit poker players in his 'Doyle's Game' in the private 'Bobby's Room' at the Bellagio Resort.

Brunson's attorney, Alan Isaacman was quoted as saying, "We're confident that after the investigation it will be seen that the offer was a sincere offer and that there were no laws violated."

Additional details of the investigation can be found at MSNBC and the Minneapolis-St. Paul Star Tribune.