BetonSports Attorney Says Board of Directors will not Testify Against Kaplan, Carruthers

BetonSports Attorney Says Board of Directors will not Testify Against Kaplan, Carruthers

Jeffrey T. Demerath, attorney for BetonSports PLC, tells Gambling911.com that the Board of Directors will not be testifying in a court of law against company founder Gary Kaplan and former CEO David Carruthers, refuting an article that appeared earlier this week.

Kaplan, Carruthers and others were indicted almost a year ago, charged with money laundering and racketeering among other alleged crimes. BetonSports shut down as soon as the indictments were handed down. Customers of BetonSports are still owed millions of dollars.

Online gambling operator BETonSPORTS plc. pleaded guilty to U.S. racketeering charges and agreed to cooperate in a case against the company's founder and other co-defendants, federal prosecutors said on Thursday.

BETonSPORTS admitted to a "pattern of racketeering acts," including mail and wire fraud, operating an illegal gambling business and money laundering, U.S. Attorney Catherine Hanaway said in a statement.

"First, the "Directors" did not plead guilty--only the corporation did so. In fact, the agreement states that the present directors (as well as several prior directors who recently resigned) will not be charged," said Demerath.

"Secondly, there is no provision in the agreement whereby any of the present directors are required to 'testify against' the remaining co-defendants. Rather, the agreement contains standard language found in virtually every plea agreement I have seen in my thirty years of experience that if requested BOS will provide a "custodian of records" (who in all likelihood would not be a director but an employee) should the Government wish to use any records from BOS files at the trial.

"This testimony would ONLY be to the effect that the documents at issue are authentic and in fact were maintained in the regular course of BOS's business. In fact, this type of testimony would be available from BOS to the remaining defendants as well should they request it. The directors will also be available should either side wish one or more of them to testify about any specific facts or occurrences if proper subpoenas are issued just like anyone with relevant information could be called by either side at a trial. BOS is not taking any sides in this case and the plea agreement does not in any way require it to do so."

A trial date has not been set. Gambling911.com has also been in communication with defense attorneys in the BetonSports matter who are in the process of trying to move any trial to the state of Florida.

Gambling911.com expected an update regarding payment of funds owed to BetonSports customers and the status of daily fines that were levied against the company after failing to appear in court several months ago.

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Christopher Costigan, Gambling911.com

Originally published May 30, 2007 11:38 pm ET