BETONSPORTS DIRECTORS NOW IN CONTEMPT OF US COURT

9 February 2007

Judge Jackson's patience runs out

Failure to comply with a December 28 order to appear in a US Court has landed British directors of the embattled BetonSports company in deeper trouble with a US Court.

Bloombergs business news service reports that the London-listed company, which is allegedly implicated in US accusations of racketeering and violating interstate gambling laws, was found in contempt of court for failing to answer charges when the US lawyer representing the company was unable to persuade the directors to make an appearance in US District Judge Carol Jackson's court.

On Friday in St. Louis, Jackson found the company in contempt for violating her December 28 order to appear in court. Prosecutors asked her to impose daily fines on the company's officers until a representative comes forth.

Betonsports' St. Louis counsel Jeffrey Demerath called the judge's chambers yesterday and "told us he had been instructed by his client not to appear,'' Jackson said. ``I clearly believe Betonsports' actions are contumacious and disregard the court's order without any excuse.''

The London-based company was indicted last summer, together with its founder Gary Kaplan, then-Chief Executive Officer David Carruthers and nine other individual defendants. Prosecutors are seeking the forfeiture of $4.5 billion.

A not guilty plea was entered by the court on the company's behalf on Jan. 11.

In November, Demerath was one of two corporate attorneys who signed a civil consent agreement with federal prosecutors paving the way for Jackson to issue an order permanently banning Betonsports from doing business in the U.S.

On the eve of the company's scheduled arraignment on the criminal charges last month, Demerath also told the court his clients had instructed him not to answer the charges.

Betonsports' decision "suggests that corporate management is neither in a coma nor dead but, instead, contemptuous and defiant,'' Assistant U.S. Attorney Michael Fagan said in court papers asking Jackson to make the contempt finding.

US $5 000 A DAY THE PRICE FOR CONTEMPT (Update)

Betonsports accruing a $5 000 a day fine for failing to appear in US court

The price for being found in contempt of a US District Court was set at $5 000 a day this week following a judge's finding that the UK company BetonSports was in contempt for not appearing at an arraignment hearing (see previous InfoPowa reports)

At the company’s behest attorney Jeffrey Demerath skipped another hearing February 2nd- a hearing that had been scheduled appropriately enough so the company could explain why it should not be held in contempt for skipping a previous hearing, back in January.

Mr. Demerath did not or could not explain to either Judge Jackson or US Attorney Michael Fagan just why he was being paid not to attend court hearings.

U.S. District Judge Carol E. Jackson said that legal counsel from BetonSports, who acted on the instructions of his clients in not appearing had "without just cause or excuse, disobeyed and deliberately ignored" her order.

Demerath said his UK client would not take it lightly.

"It's a very serious matter and I will be conferring with the client shortly," he said.

Online Casino News courtesy of InfoPowa

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