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BETonSPORTS Founder Gary Kaplan Pleads Not Guilty |
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Written by Thomas Jensen
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Tuesday, 15 May 2007
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 Gary Stephen Kaplan, the founder of the BETonSPORTS Plc pleaded not guilty on Monday. was indicted in June of 2006 by a federal grand jury in Missouri which accused him and 10 others of engaging in racketeering, conspiracy and fraud arising from the operation of Costa Rica-based Internet gambling businesses.
The United States "War on Internet Gambling" began last July 2006 with the arrest of BETonSPORTS CEO David Carruthers during a layover at the Dallas/Fort Worth airport. Carruthers was detained traveling between the United Kingdom and Costa Rica and extradited to St. Louis where he remains in a hotel under house arrest pending trial.
Gary Kaplan was arrested this past March in the Dominican Republic and entered the plea in an appearance before Magistrate Judge Mary Ann Medler of the U.S. District Court. Kaplan will in custody pending a May 25 detention hearing that could determine if he can be released on bond.
Clive Parritt, the current chairman of BETonSPORTS stated, "We are close to an agreement with the DoJ under which the case against BetonSports will be closed. We will agree the company has been associated with being part of an 'illegal gambling enterprise' between 1992 and 2006 but essentially we are being penalized for buying the company from Kaplan."
Apparently the settlement would prevent any of the current un-indicted board of directors from having charges brought against them including Lord Glentoran, the Tory shadow minister for Northern Ireland.
Point-Spreads.com believes that Kaplan is going to have a tough road ahead of him now that the current board of directors appears ready to cut a deal. As part of the deal, the prosecution could ask the current board to testify against Kaplan. Meanwhile Norm Steinberg and Peter Wilson are still at large. Steinberg happens to be residing in Costa Rica immune to extradition while Wilson’s whereabouts are unknown at this time.
While Gary Kaplan is being served up as the one responsible for the collapse of BETonSPORTS, bad management decisions after Kaplan relinquished control are helping the current board of directors decide to plead guilty.
Creditors and shareholders will be updated at a meeting on May 16th, 2007 which will also see BETonSPORTS plc go into liquidation. US customers are still owed money by the main subsidiary, BETonSPORTS Antigua, which is also being wound down.
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Last Updated ( Tuesday, 15 May 2007 )
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