FBI Detain Online Betting Boss at Airport

[cisco]

The boss of online betting group BetonSports, David Carruthers, was detained by US federal authorities while changing flights in the US en route from the UK to Costa Rica yesterday.

In a statement this morning, the STOCKWATCH UK group said it is currently seeking clarification as to the basis of the detention, adding a further announcement will be made when appropriate.

STOCKWATCH UK said the move is likely to be "politically motivated".

Carruthers was accompanied by his wife, who was allowed to travel on to Costa Rica.

BETonSPORTS said today that it was seeking clarification of the basis of the detention. Meanwhile, its operations in Antigua, where it is licensed, Costa Rica and Kuala Lumpur are operating as normal.

A spokeswoman for BetonSports said Curruthers was detained at an unknown US airport at 11pm local time by the federal authorities.

Miami and New York are two main transfer points from Europe to Costa Rica.

Unfortunately only Madrid among European airports has direct flights to Costa Rica and Carruthers was sitting in the transit lounge at 11pm last night when he was approached by Federal agents who issued the traditional friendly greeting of ?Would you mind coming with us, Sir.?

The department of justice has repeatedly said it regards online betting as an illegal activity under the Wire Act, which prohibits wagers on "sporting events".

Some companies say they have legal advice suggesting firms that take bets on sports are at greater risk of prosecution than those involved in internet gaming. A bill designed to tighten US law on online betting was last week passed by the House of Representatives and has been sent to the Senate

 

[cisco]

Chief executive of BetonSports David Carruthers will be appearing in court at the Federal Court House in Fort Worth, Texas, at 2pm US Central time Monday according to a spokesperson at the FBI.

Carruthers was detained late on Sunday afternoon at Dallas airport by the US authorities while en route from the UK to Costa Rica.

He was detained by members of the FBI and the Inland Revenue Service (IRS) at around 4pm local time with a warrant for his arrest. He is believed to have spent a night in Tarrant county jail.

According to sources, Carruthers will be charged under the federal racketeering statutes or RICO (Racketeer Influenced and Corrupt Organisations Act).

The Federal warrant has been issued out of state with a sealed indictment. The hearing will determine his rights and the possible bail conditions. Sources indicate he is unlikely to be granted bail. The hearing will also determine which Federal Correctional Institute he will be sent to.

His wife Carol Carruthers was travelling with him but was released immediately. He would have spent a night in the local county jail.

Egaming Review will send out a further release at 8pm London time

 

[DeadPrez]

:scared

:wtf:

 

[DeadPrez]

RICO is mafia shit

doesn't look good

 

[hoss]

This is because of the guy who used to be behind this book, but sold up not long ago - NY guy called Kaplan...Carruthers looks like he is caught in the middle..or being put in a position to drop himself in the sh*t.

Guess there will be a few guys changing flight plans now.....

wonder what percentage of these offshore books are crime backed.......? :scared

 

[DR STRANGELOVE]

wonder what percentage of these offshore books are crime backed.......? :scared

If RICO is involved...
sounds like trouble...

 

[chump]

maybe it's some KARMA from all the bonus stealing they've done recently and BS with this group of books???

I would never play there again after all that and they steal from players, they book the bets than steal.

So many better books out there than to trust these tools

 

[danmurphy jr]

There's been rumors of Federal Arrest warrants for off-shore owners and executives, which is the reason for most books being located in countries with no extradition treaties. He is toast! What was he thinking?

 

[hoss]

"David Carruthers will appear in Court at the Federal Court House in Fort Worth, Texas, at 3pm EST. Carruthers will be charged under the federal racketeering statutes, according to unconfirmed reports."

thats not a standard offshore charge..no way... :nono:

 

[IntenseOperator]

JMO

You know after they (the Feds) make all attempts to go after the books (successful or not) they will turn their sights on the users. :com:

 

[hoss]

Maybe I was wrong....

"The gaming world is in shock. BETonSPORTS CEO David Carruthers has been
indicted on Racketeering, Conspiracy and Fraud Charges.

Federal prosecutor Mark Nichols summarized the multi-count indictment in open court, saying that Carruthers and several other people were charged with conspiracy in offering bets on professional and college sports to U.S. residents.

BetonSports took wagers on an Internet site and over a toll-free telephone line, Nichols said.

Prosecutors asked that Carruthers be held until he could be sent to Missouri to face charges.

Bleil agreed that Carruthers would remain in custody at least until a detention hearing can be held Friday in Fort Worth.

It was known within the industry that Gary Kaplan was under federal investigation for his actions while at the helm of BETonSPORTS, before the company went public in 2004. Gary Kaplan is rumored to be the real main man behind Igotsportsbook.com, a sportsbook established last year after Kaplan sold his remaining shares in BETonSPORTS." (from the onlinewire).

Boys - I have to say your country's gambling laws are a mess and they are going to get worse....we have some decent books in the UK, but they can't risk taking bets from US residents......hope you all have Canadian relatives :SIB

hoss

 

[MadJack]

ouch

ouch

Eleven Individuals and Four Corporations Indicted On Racketeering, Conspiracy And Fraud Charges
7/17/2006 5:34:00 PM

--------------------------------------------------------------------------------
To: National and State desks, Legal Reporter
Contact: U.S. Department of Justice, 202-514-2008; Web: http://www.USDOJ.GOV

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.

BetonSports PLC, a publicly-traded holding company that owns a number of Internet sportsbooks and casinos, was among the companies charged in the indictment. The founder of BetonSports.com, Gary Stephen Kaplan, 47, was charged with 20 felony violations of federal laws including: the Wire Act, Racketeer Influenced and Corrupt Organizations (RICO) Conspiracy, interstate transportation of gambling paraphernalia, interference with the administration of Internal Revenue laws and tax evasion.

Other defendants in the racketeering conspiracy include: Kaplan's siblings, Neil Scott Kaplan and Lori Kaplan Multz; Norman Steinberg; David Carruthers, chief executive officer of BetonSports.com; Peter Wilson, media director for BetonSports.com; and Tim Brown, Steinberg's son-in-law. The three other charged companies, all Florida-based, were Direct Mail Expertise, Inc., DME Global Marketing and Fulfillment Inc. and Mobile Promotions Inc. Also charged are William Hernan Lenis; Monica Lenis and Manny Gustavo Lenis, owners and operators of the Florida companies; and William Hernan Lenis' son, William Luis Lenis.

"Illegal commercial gambling across state and international borders is a crime," said U.S Attorney Catherine L. Hanaway of the Eastern District of Missouri. "Misuse of the Internet to violate the law can ultimately only serve to harm legitimate businesses. This indictment is but one step in a series of actions designed to punish and seize the profits of individuals who disregard federal and state laws."

The indictment alleges that Gary Kaplan started his gambling enterprise via operation of a sportsbook in New York City in the early 1990s. After Kaplan was arrested on New York state gambling charges in May 1993, Kaplan moved his betting operation to Florida and eventually offshore to Costa Rica. According to the indictment, BetonSports.com, the most visible outgrowth of Kaplan's sports bookmaking enterprise, misleadingly advertised itself as the "World's Largest Legal and Licensed Sportsbook." The indictment also alleges that Kaplan failed to pay federal wagering excise taxes on more than $3.3 billion in wagers taken from the United States and seeks forfeiture of $4.5 billion from Kaplan and his co-defendants, as well as various properties.
The indictment alleges that Gary Kaplan and Norman Steinberg, as the owners and operators of Millennium Sportsbook, Gibraltar Sportsbook, and North American Sports Association, took or caused their employees to take bets from undercover federal agents in St. Louis who used undercover identities to open wagering accounts. The indictment also alleges that Kaplan and Mobile Promotions illegally transported equipment used to place bets and transmit wagering information across state lines and that DME Global Marketing and Fulfillment shipped equipment to Costa Rica from Florida for BetonSports.com.

The racketeering conspiracy alleges that the defendants agreed to conduct an enterprise through a pattern of racketeering acts, including repeated mail fraud, wire fraud, operation of an illegal gambling business and money laundering.

In conjunction with the indictment, the United States has filed a civil complaint in federal court to obtain an order requiring BetonSports PLC to stop taking sports bets from the United States, and to return money held in wagering accounts to account holders in the United States. U.S. District Judge Catherine D. Perry issued the temporary restraining order today. A hearing in the civil case has been requested within 10 days. As authorized by federal statute, the FBI is issuing letters to four telephone companies, instructing them to stop providing phone service to the Internet sportsbooks and casinos operated by BetonSports PLC.

Gary Kaplan resides in Costa Rica and a warrant has been issued for his arrest. Neil Kaplan, 40, is in custody in Ft. Pierce, Florida. Carruthers, 49, a resident of Costa Rica and Bromsgrove, Worcestershire, England, is in custody in Ft. Worth, Texas. William Luis Lenis and Manny Gustavo Lenis are in custody in Miami. Tim Brown was arrested near Philadelphia. Warrants have been issued for the other defendants not currently in custody. The United States will seek extradition of all defendants to St. Louis for prosecution.

The charges are the result of a joint investigation by Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. The prosecution is being conducted by the Organized Crime and Racketeering Section of the Justice Department's Criminal Division and the U.S. Attorney's Office for the Eastern District of Missouri. The Florida Department of Law Enforcement, the Tampa Police Department, the Jacksonville, Fla. Sheriff's Office, and NFL Security and NCAA Enforcement Office personnel also assisted in the investigation.

The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty.

http://www.usnewswire.com/
-0-
/? 2006 U.S. Newswire 202-347-2770/

 

[freelancc]

:mj13:

 

[vinnie]

The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty.

Not when your dealing with the Feds

 

[MadJack]

if anybody has money with betonsports, millennium, gibraltar or infinity, i'd recommend playing the safe side and pull out for now.

i don't know what's going to happen, if anything, but i'd rather have my money safely in neteller, or at home, or with a book that isn't being hassled by the DOJ.

just my opinion.

 

[jpblack34]

Jack, you think Calvin Ayre will go to Vegas now for the conference? IMO, he's gotta lay low now and let this ride out.

 

[MadJack]

Jack, you think Calvin Ayre will go to Vegas now for the conference? IMO, he's gotta lay low now and let this ride out.

i was just talking to a good friend who thinks he will be there. i'm not sure after talking to him.

this is some crazy stuff that's going on but i think it's mainly OLD stuff in the charges.

who knows.....

if i was calvin, i'd stay away.

 

[Dr. Fade]

It happened to me in 1998. I don't know why anyone would be surprised. I'm surprised they haven't charged anyone since then. The one thing I am surprised about is they went after a Non-US citizen. Welcome to "Freedom."

 

[Dell Dude]

All of this is 100% unconstitutional. The charging on a non-American. The unilateral attempt to ban advertising and confiscate funds from an offshore entity. I think they are even charging the sportsbook itself. They are basically throwing everything they got. Unfortunately they have no right to do any of it. I want to see how this plays out. If this is allowed to even make it to trial, then the rule of law has been replaced with the rule of the jungle. That means it's time to stick it up the FBI's ass and flood the US market with "illegal" online gambling by whatever means necessary.

 

[Dell Dude]

That's really the only thing you can do. You can't reason with them.They don't care about the Constitution. They don't care about the will of the American people. They don't respect or care about other countries laws and sovereignty. Only thing they (politicians, LE) understand is brute force. When they realize internet gambling has become too massive and invasive to control led alone stop, then they'll come around. And you can't get there through the legal or poltical system. That is rigged for the "house".