I only started playing poker 4 months ago. When I did so, Gene immediately advised me 'do not play on-line for real money' and explained why. In that short time, Ive seen and heard what can happen independently. I play for fun money on Pokerroom. Sometimes I 'observe' the live action. I see one table tournys etc. arranged, sometimes nightly, by the same people. The same 7 people sit and wait for two more unlucky ones to join them. Its pretty obvious by the pattern of betting that the 7 are working together. For all I know it is one guy with 7 faked ID's and 7 VDU's on his table.

Its been mentioned in their chat room before. The response is 'sure, we will look at it, but there is not much we can do, its not illegal'
I guess as long as they get their rake they couldn't care less.

I cant speak for other sites as I only use Pokerstars for the weekly chipboard tourny. I dont see there is any issue with a private buy-in tourny for 'known' people. I understand thats one of the reasons we have to make it private and password it.

Sure Ive also heard that it goes on in live rooms also, but if casinos would be so quick to act against it, why do we hear stories of players known to management being warned off the vacant spot on a particluar table??