Guilty Of Federal Racketeering Charges Says BetOnSports

27 May 2007

According to U.S. Attorney Catherine Hanaway and in a move that stunned the online gambling sector, BetOnSports PLC pleaded guilty to federal racketeering charges. The Fort Wayne Journal Gazette carried the details of the bargain in which Hanaway agreed to drop any further criminal prosecution of the company in return for BetOnSports cooperation in supplying witnesses and evidence in the pending cases against Carruthers, Kaplan and other lower-level defendants.

“…Now that the legal case is settled and access to the U.S. market is banned, BetOnSports is going out of business, Demerath said. “It is going to be wound up and closed down,” Demerath said.”

“”This plea constitutes a submission by the company to the U.S. justice system,” Hanaway said in a statement. “This plea, combined with the terms of the civil junction, should put an end to the BetonSports illegal gambling empire.”

“…faces a fine up to $500,000 and possible forfeitures. The company also is subject to a permanent injunction that requires it to repay wagers received from U.S. gamblers held by the company as of June 1, 2006.”

Sentencing for BetOnSports is set for Oct. 19. In the meantime, Carruthers and Kaplan remain under arrest since this deal in no way ends their prosecution.

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