A US federal judge on Monday stated the evidence gathered by FBI from the Caesars Palace, Las Vegas, when charging Malaysian gambling kingpin Phua Wei Seng and his son Darren should be tossed out as the warrant was "fatally flawed".

However, the same judge, in a separate decision, said that the FBI were within their authority to carry out their ruse as technicians to enter the Phua's villa.

The Las Vegas Review Journal reported in the first decision, US Magistrate Judge Peggy Leen found that 'false and misleading statements' were made by FBI agents in a sworn affidavit they submitted in seeking a judge’s permission to search the villas in July.

“She concluded that the search warrant affidavit, without the errors and false statements, was 'fatally flawed' and lacked probable cause to support the search.

“This is a triumph for citizens everywhere, showing that courts will enforce the (US) constitution. I’m pleased that her honour recognised that law enforcement must not be reckless nor omit vital information when seeking a warrant,” Phua’s lawyer David Z Chesnoff was quoted as saying.

Phua has been in the local headlines recently for his supposed links to BN government leaders and purported national security contracts which were given to him. This came to light following his arrest by the US authorities and the disclosure of a letter from Home Minister Zahid Hamidi who cleared him of international organised crime links.

FBI notes showed that they had recorded all the ongoings in the villa before arresting him, his son, along with his other workers. Phua has claimed his arrest was the result of entrapment.

Prosecutors have 14 days

The Las Vegas Review Journal said Leen’s decision followed four days of hearing that included testimony from FBI Agent Minh Pham, who prepared the still-sealed search warrant affidavit.

Nevada US Attorney Daniel Bogden said prosecutors are reviewing Leen’s findings and have 14 days to respond.

Prosecutors previously said they would have a tough time proving the case against the Phuas without the material seized in the July 9 raid which incuded  dozens of cell phones, computers, iPads and other electronic equipment.

During the case, Chesnoff and co-defense counsel Thomas Goldstein argued the agents conducted an unconstitutional, warrant-less search to gather evidence.

In their notes, FBI revealed how Phua and his betting den was being staked out before FBI moved in.

In her 32-page decision, Leen said the failure to disclose the ruse was the only 'material omission' in the search warrant affidavit, reported the Las Vegas Review Journal .

She said the magistrate judge who approved the search warrant should have been given that information to help her determine whether agents had demonstrated probable cause for the July 9 search.

“The investigators’ suspicions that Phua was engaged in illegal sports betting at Caesars Palace may be borne out by the evidence recovered in the execution of the warrant,” Leen wrote. “However, a search warrant is never validated by what its execution recovers.”

‘FBI ruse not unconstitutional’

In a separate decision filed Monday, Las Vegas Review Journal reported that Leen ruled that FBI agents were within their authority to pose as technicians when they obtained consent from the Phuas to enter the villa on July 5.

“The ruse itself did not violate the constitutional rights of the defendants," she said adding the Phuas were 'tricked but assumed the risk' when they let the agents inside the villa.

US prosecutors have alleged that Phua has ties with the Hong Kong-based 14K triad and his group made a USD$13 million profit in June and July last year accepting World Cup bets in the scheme that stretched to Macau.

Phua ( above ) and his lawyers have strongly denied ties with the triad.

Home Minister Zahid has stated that Phua’s national security ties with Malaysia are 'a secret'. According to police sources, Phua was also convicted back home for running an online betting den in 2004.