More Problems for BetOnSports and Associates

15 August 2006

It’s been reported that shareholders of BOS are considering legal action against BOS advisors based on the fact that they (advisors) did not mention any unfavorable background on Gary Kaplan, previous owner of the company prior to the the stock offering. It’s rumored that Kaplan has left Costa Rica for parts unknown but the middle east is suspected. He was included in the indictment against BOS for, among other charges, fraud and racketeering. Apparently, the advisors, Evolution Securities and Baker Tilly, felt there was no obligation to report any Kaplan history of previous gambling offenses since he was no longer associated with the company. However, some shareholders believe this information was critical in making sound investment decisions and should have been made available.

Mention should be made here that David Carruthers, the former CEO of Betonsports, who was arrested and held on a $1 million bond over a week ago is now counting his release in hours. It’s been reported that friends and family have raised the necessary money and arranged for housing and other stipulations as required for release on bond.

Meanwhile, BOS was busy firing David Carruthers and 800 other employees of BOS and announced they were out of the US market. They look to Asia to bolster their coffers but Asia is comparably a much smaller market and observers don’t believe this will be the cure, or even an effective bandage for the ailing company.