|
 BetonSports
Founder Gets Off on
Some Charges
A federal judge
recommended the US
drop tax evasion and
obstruction charges
against Gary Kaplan,
the imprisoned
founder of bankrupt
British on line
gambling company
BetonSports Plc.
Kaplan, 49, would
still face charges
of conspiracy and
violating US
Internet gambling
laws.
According to
eGaming Review
Magazine:
Court documents from
the US District
Court of Missouri
relating to the case
brought by the US
government against
Betonsports
founder Gary Kaplan
on tax evasion
charges, reveal that
Kaplan is arguing
that he did not
violate tax laws
because “no wagering
excise tax was owed
by him because the
wagers either were
not accepted in the
Unites States or
were not placed by a
person who was in
the United States”.
The document adds:
“Questions of venue
in criminal cases
are not merely
matters of former
legal procedure.
They raise deep
issues of public
policy.” The
response from the
prosecution adds
that while the US
government “argues
that the defendant
was subject to the
wagering excise tax
pursuant
to defendant’s
status as owner and
operator of various
specified gambling
entities doing
business in the
United States”, the
court found “the
defendant’s
arguments
persuasive”.
Someone close to
Kaplan on Thursday
clarified that
the ruling is not
related to Kaplan
being a US citizen
placing a bet in the
US but rather the
judge feels that
there are two steps
in Statue 4401(wager
excise tax)--- where
the bet is placed
and where it is
accepted.
"It is placed in the
US but accepted in
Antigua or Costa
Rica. The gov't
argued that even
though it was a
foreign corporation
accepting the bets,
they felt they were
"sham" corporations
owned and controlled
by Kaplan, therefore
Kaplan was in
reality taking the
bets and he was a US
citizen in a foreign
country taking bets,
so he is responsible
for the excise tax.
The magistrate
judge declared that
the corporations
were not in fact
sham corporations,
in fact, the gov't
had indicted one of
the corporations in
the RICO charge (betonsports
plc) so therefore
these were
legitimate foreign
corporations set up
in foreign countries
to do a successful
business. You cannot
name fictious people
or corporations in
RICO charges.
Furthermore, she
felt that people are
not breaking the law
when they set up
foreign corporations
to conduct their
business to take
advantage of a tax
break or a tax
exemption.
"It is a major
victory for online
wagering, and could
bring a favorable
ruling on the motion
to dismiss because
of the WTO ruling.
That motion has not
been answered by the
judge yet."
Read Report and
Recommendation from
Magistrate Judge
Concerning Gary
Kaplan
Here
Kaplan has one of
the best legal teams
including Ben
Brafman and Alan
Dershowitz.
----
Gambling911.com News
Wire
Originally published
May 1, 2008 11:27 am
EST |
