7 Plead Not Guilty in BetOnSports Case
Posted on: Monday, 31 July 2006, 15:00 CDT
By JEFF DOUGLAS
ST. LOUIS - Seven defendants named in a federal indictment of one of the world's largest online gambling companies, BetOnSports, pleaded not guilty Monday to federal racketeering and mail and wire fraud charges.
Neil Kaplan and Lori Kaplan Multz, the brother and sister of BetOnSports founder Gary Kaplan, were among those pleading not guilty to a 22-count indictment.
The government claims BetOnSports and its employees fraudulently took billions of dollars in wagers from U.S. residents by phone and over the Internet without paying excise taxes.
No one appeared on behalf of the BetOnSports corporation.
Gary Kaplan is a former New York-area bookie now living in Costa Rica, authorities said. He remained at large despite the indictment.
David Carruthers, chief executive of BetOnSports PLC, was expected to appear in court Monday afternoon and enter a not guilty plea.
Carruthers was being transported to St. Louis from Dallas, according to court officials. He was arrested July 16 by federal agents at Dallas-Fort Worth International Airport en route to Costa Rica, where the company has an office.
The Justice Department is seeking the forfeiture of $4.5 billion, cars and computers from the defendants.
BetOnSports fired Carruthers last week and the company has agreed to a judge's order to stop accepting U.S. bets. The company also has asked the London Stock Exchange to suspend trading of its shares.
U.S. District Judge Carol Jackson extended a temporary restraining order prohibiting BetOnSports from doing business with U.S. residents until Aug. 14. She said she will decide before then whether another hearing is necessary.
Also entering not guilty pleas at Monday's arraignments were BetOnSports employee Tim Brown; William Lenis, 52, who owned Mobile Promotions Inc., a Florida company that did promotions and marketing for BetOnSports; William Lenis' son and daughter, Monica and William Luis Lenis, and his nephew, Manny Lenis, who worked for Mobile Promotions.
William Lenis also owned two other companies named in the indictments.
A lawyer appeared for DME Global Marketing, another one of the Lenis family companies, which does work for BetOnSports, and pleaded not guilty.
U.S. Magistrate Judge Mary Ann Medler set a hearing date of Aug. 21 for the defendants who appeared, but said that hearing may be postponed.
Source: Associated Press/AP Online
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