KAPLAN APPLIES FOR CHARGES TO BE DISMISSED

24 August 2007

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The legal team has apparently made application to have the charges against Kaplan withdrawn on grounds that the Department of Justice's interpretation of the U.S. Wire Act is overly broad, and the indictment fails to present a RICO violation because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.

Online Casino News courtesy of InfoPowa