$28.2 Million Fine For BetOnSports
02 December 2009
If you are keeping score, mark one up for the government. On Tuesday, BetOnSports, the giant gambling house brought down by federal prosecutors, was sentenced to probation and a fine of $28.2 million.
However, BetOnSports is in debt up to it’s eyeballs, owing many millions more than it has, so it is doubtful it will pay any of the fine according to lawyers on both sides. It is estimated that it still owes seven to eight million dollars to U.S. gamblers; and that amount may be quite understated. It is believed that many gamblers did not make claims, fearful of repercussions from the federal government.
It is unlikely that any gamblers still owed money will see anything more than pennies on the dollar.
The company went out of business in 2006 after Gary Kaplan, its founder and several more executives were indicted in St. Louis, MO on federal charges accusing them of running an illegal gambling operation. Former CEO David Caruthers pled guilty in April 2009, but has yet to be sentenced.
In its prime, it handled more than $1 billion in bets a year through its many websites. It quit taking bets from U.S. players later that year, and in May 2007, pleaded guilty to racketeering conspiracy.
Gary Kaplan pled guilty to conspiracy, racketeering conspiracy and violating the Wire Wager Act and forfeited $43.65 million, and in November, was sentenced to 51 months in prison. His brother and sister pleaded guilty in June to felony conspiracy charges and turned over more than $6 million they had in Swiss bank accounts.
23 June 2009Betonsport's Founder to face Trial
It’s been awhile, but you should remember this situation very well, especially if you live in America. Gary Kaplan, the founder of the online sportsbook Betonsports, and 10 other defendants were indicted 3 years ago in St. Louis for accepting sports wagers over the Internet and via phone, which was in direct violation of the age-old USA wire act which prohibits such activities.Read full article
17 July 2006CARRUTHERS, 10 OTHERS PLUS 4 CORPORATIONS INDICTED ON RACKETEERING, CONSPIRACY AND FRAUD CHARGES
Department of Justice MONDAY, JULY 17, 2006 Eleven Individuals and Four Corporations Indicted on Racketeering, Conspiracy and Fraud Charges WASHINGTON – A federal grand jury in the Eastern District of Missouri has returned a 22-count indictment charging 11 individuals and four corporations on various charges of racketeering, conspiracy and fraud, the Department of Justice announced today. The indictment was returned on June 1, 2006, and unsealed today.Read full article
26 July 2006Bet-On-Sports Fires CEO But Mystery Surrounds Former Founder Gary Kaplan
The INQUIRER By Tony Dennis: Wednesday 26 July 2006, 10:23 LEADING UK online betting site, Betonsports has fired its CEO. Mainly because he is under arrest in Fort Worth,Texas. Amongst the charges against David Carruthers are racketeering and charges of illegally taking online sports bets. The company is insistent that besides Carruthers and founder, Gary Kaplan, none of the other directors are named in the charges.Read full article