Betonsports saga nearing the end?

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KAPLAN APPLIES FOR CHARGES TO BE DISMISSED

BetonSports founder claims that Wire Act use is overly broad and charges are flawed

According to the Bookmaker's Review this week, the imprisoned BetonSports founder Gary Kaplan is vigorously opposing his continued incarceration and Department of Justice charges concerning offences under the Wire Act and RICO (Racketeer Influenced and Corrupt Organizations Act) laws.

The charges originate from Kaplan's claimed involvement with the BetonSports online gambling group, which was forced to withdraw from the US market by Department of Justice initiatives, losing most of its business and setting it on the road to liquidation.

Kaplan was arrested in the Dominican Republic earlier this year and extradited to the USA after an FBI search over several months (see previous InfoPowa reports). His applications for bail have been opposed on grounds that he constitutes a flight risk.

The report reveals that Kaplan has engaged a top legal team to fight his corner which includes ace lawyer Ben Brafman, who has in the past represented rapper P Diddy and former online gambling entrepeneur Jay Cohen.

The legal team has apparently made application to have the charges against Kaplan withdrawn on grounds that the Department of Justice's interpretation of the U.S. Wire Act is overly broad, and the indictment fails to present a RICO violation because it does not adequately show two essential elements in RICO charges: the continuity and structure necessary for a RICO enterprise and a pattern of racketeering activity.

Meanwhile, the gambling information portal Gambling911 reiterates earlier private claims by a Kaplan source that Kaplan is not a well man, and his condition is exacerbated by captivity.

"He is currently being denied medication and a diet suitable for the conditions ....and he's in a 30 person facility with no special units," a source close to Kaplan's case told the portal.

Kaplan apparently suffers from severe back pain as a result of a past injury.

There has been no further word on a trial date for former BetonSports CEO David Carruthers, whose arrest in Fort Worth, Texas over a year ago whilst in transit to Costa Rica triggered the Department of Justice action against BetonSports. Carruthers remains under house arrest and onerous bail conditions in St. Louis and has yet to have his day in court. He has made it clear that he will strongly defend himself against similar charges as those faced by Kaplan.

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KAPLAN STAYS IN JAIL, SAYS JUDGE COOPER

BetonSports founder's ill-health appeal fails

The Bloomberg business news agency reports that Gary Kaplan (48), the BetonSports plc founder captured 10 months after fleeing a U.S. government indictment for illegal Internet betting, has lost his bid to be freed on bail due to health considerations as he awaits trial.

U.S. District Judge Carol Jackson in a St. Louis federal court denied Kaplan's request to be released. He was initially denied bail by a federal magistrate in June after being extradited from Dominica where he was arrested by FBI agents working in concert with local authorities .

"There is no condition or combination of conditions of release that would reasonably assure the defendant's appearance," Jackson said this week in a ruling.

Formerly a major player in the online gambling industry and with most of its business in the United States, BetonSports was ruined by US Department of Justice actions that commenced with the arrest whilst in transit of former CEO David Carruthers over a year ago.

Carruthers, who has vigourously protested his innocence throughout, remains under house arrest in St. Louis and has yet to have his day in court on the many and serious charges laid against him by DoJ lawyers.

The London-based online gambling company pleaded guilty May 24 to a single racketeering conspiracy charge and agreed to cooperate with prosecutors by furnishing evidence against Kaplan and 11 co-defendants, including Carruthers. All of the 11 individual defendants have pleaded not guilty.

Kaplan had previously offered to pay for a private security detail to guard him and agreed to wear electronic monitoring equipment if he was granted bail.

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ONLINE GAMBLING'S CARRUTHERS SPEAKS

But not about the day in court he still awaits after 18 months of house arrest

In July 2006, a seemingly routine business flight from London via the USA to Costa Rica turned into a long-running nightmare for the then CEO of the powerful BetonSports online gambling group, David Carruthers. Arrested on US Department of Justice sealed warrants on a raft of accusations that covers some 22 felonies, Carruthers found himself treated as a common criminal and detained.

Subsequently, he was allowed out on astronomical bail and stringent house arrest conditions. These kept him in St. Louis awaiting trial as the months slipped past and other individuals were pulled into the charges, including BoS founder Gary Kaplan, who was arrested in Dominica and extradited to the States. Kaplan remains in custody despite three requests for bail, the latest to an appeals court.

This week Interactive Gaming News editor Mark Balestra spent some time with Carruthers to find out how a dynamic business executive keeps himself busy under these difficult circumstances - aside from preparing for his day in court, that is.

In the interview, Carruthers is far from sorry for himself, and has adopted a positive and productive approach to his incarceration. Avoiding for legal reasons any discussion of his defence case, he told Balestra that after eighteen months of restriction he is still making the best of the things and looks forward to a fair trial.

Now in his fifties, Carruthers is probably in the best physical shape of his life, exercising and training for a 26.2 mile marathon run for charity next year for which he is seeking sponsors. In October he launched a Web site featuring news and information related to the online gambling industry as well as information about himself. He updates the site regularly, and blogs daily on politics, sports, health and whatever else comes to mind.

Talking about the St. Louis marathon, Carruthers told Balestra: "I was focused on trying to find a charity that was local and would help perhaps children, and I discovered that the race, the event itself, has two nominated charities – the first one being leukemia, which involves children as well as adults, and the second one being back stoppers, which is a local charity focused on people that are here to protect and serve others that have suffered great loss, and supports their families after that great loss. And I think they were very fitting and worthwhile charities. So I've decided to run with them. . . . No pun intended. And I look forward to being able to raise some money for them.

"One additional factor is that back in the U.K., my son's best friend for over 20 years was struck with leukemia in 2006 and is currently battling back well post bone marrow transplant. His name is Jonjo Roouney. He is additional motivation and an inspiration to me. His troubles started almost the same time as mine.

"There are two ways in which you can help me raise some money for these charities. One is to make a straightforward donation, to reward them for my efforts in running this race. And the other one is that I'm going to put my running vest up for sponsorship opportunity. And I intend to hold a silent auction for that opportunity. Those that are interested can submit a bid by email. There's two catches: The first catch is that it will be exclusive, so it will be expensive. And the second one is that if I can get around to 26.2 miles of a very hilly marathon course in St. Louis in under four hours, I'd like them to double their commitment, which will give me more even more motivation to ensure that we can get around this course in a respectable time.

"I've not gone about this with the view of hobbling around in six hours. I'm going to try to do it in a respectable time. And I think under four hours for the fist-time marathon for a 50-year-old who's been sat on his ass for 35 years is quite a high bar."

Carruthers says he remains in good spirits and is focusing mind and muscles where he can, ".....and I'd like to wish anybody that knows me - all my friends and colleagues and associates - a very healthy and wealthy seasons greetings."

To make a donation to David's worth marathon cause, contact him at carruthers486@msn.com for details. You'll also find more information at his Web site: www.DavidCarruthers.com.