NOT GUILTY PLEAS ENTERED FOR BETONSPORTS CEO
01 August 2006
ST. LOUIS – The former chief executive of one of the world’s largest online gambling companies, BetOnSports, will remain in federal custody after pleading not guilty Monday to charges of mail and wire fraud and racketeering.
David Carruthers, 48, was one of several BetOnSports PLC employees and associates named in a federal 22-count indictment who pleaded not guilty.
Neil Kaplan and Lori Kaplan Multz, the brother and sister of BetOnSports founder Gary Kaplan, were among those pleading not guilty.
The government claims BetOnSports and its employees fraudulently took billions of dollars in wagers from U.S. residents by phone and over the Internet without paying excise taxes.
No one appeared on behalf of BetOnSports PLC, a British online gambling company. U.S. Attorney Catherine Hanaway wasn’t surprised.
“They have not had any regard for the law,” Hanaway said. “And to not appear would be a further step along that same path.”
Gary Kaplan is a former New York-area bookie now living in Costa Rica, authorities said. He remained at large despite the indictment.
Carruthers was transported to St. Louis from Dallas, according to court officials. He was arrested July 16 by federal agents at Dallas-Fort Worth International Airport en route to Costa Rica, where the company has an office.
The Justice Department is seeking the forfeiture of $4.5 billion, cars and computers from the defendants.
BetOnSports fired Carruthers, who is a citizen of the United Kingdom, last week and the company has agreed to a judge’s order to stop accepting U.S. bets. The company has also asked the London Stock Exchange to suspend trading of its shares.
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
18 July 2006US GAMBLING BILL IN SPOTLIGHT AFTER INDUSTRY ARRESTS
Reuters Tue Jul 18, 2006 5:11pm ET16 By Julie Vorman WASHINGTON, July 18 (Reuters) – The indictment of BETonSPORTS Plc (BSS.L: Quote, Profile, Research) executives for racketeering should add momentum to U.S. legislation that aims to ban broader types of Internet gambling, two Republican backers said on Tuesday. The U.S.Read full article
24 July 2006A HYPOCRITICAL INTERNET GAMBLING BAN
THE HAMILTON SPECTATOR Protecting American family values — or the offline industry? Gambling is one of the great successes of online commerce. Americans bet nearly $6 billion online last year, roughly half the global total The Economist (Jul 22, 2006) As someone paid to have a keen appreciation of risk, David Carruthers must regret his choice of travel agent.Read full article