BetonSports Failed to Disclose Investigation to Ad Venues
BetonSports, a criminal enterprise as deemed by the US Justice Department, has no money to pay its players. Now the online gambling firm through its legal representation is demanding monies back from all advertising venues.
Gambling911.com has been fielding calls from ad venues all week that received notice from BetonSports that they want their money back.
If anything, ad venues - many of which have suffered irreparable damage as a result of promoting BetonSports - may have a case themselves against the defunct online gambling firm.
"We took BetonSports on believing they had ample money in the bank to pay customers," said one website owner who wished not to have his name or site mentioned. "Now, after promoting BetonSports, there are countless numbers of our readers owed money by this **** company. We look like ******* scammers because of BetonSports. And now they think we owe them? Give me a ******* break!"
In the case of venues such as the Casino Affiliate Convention, money from BetonSports was paid upfront and used towards the conference. Publications - unlike most online gambling websites - require money upfront to pay costs and that money must come from sponsors like BetonSports. After all, nobody told BetonSports to shut down after they entered into these ad contracts.
(pictured right: US Attorney overseeing the BetonSports matter, Catherine Hanaway)
But matters get worse.
There is evidence to suggest that BetonSports representatives knew they were under investigation long before they entered into most of their final ad contracts.
A media firm that worked with BetonSports had been subpoenaed and notified a high ranking BoS executive of this subpoena back in January of 2006, six months before the indictment against BetonSports was handed down.
U.S. District Judge Carol Jackson found that BetOnSports is in contempt of court for failing to appear in St. Louis District Court to answer charges of racketeering and violating interstate gambling laws.
The judge in this case has slapped the company with a $5000 a day fine. BetonSports Board of Directors, including a British Lord (Lord Glentoran, Shadow Minister for Northern Ireland) and Operations Manager, Clive Archer, last seen in Suffolk, England, continue to thumb their noses up at the US Justice Department.
Gambling911.com, which did not have BetonSports as a sponsor at the time the indictment was handed down, suggests it might be prudent to hire an "inexpensive" attorney (preferably one who can't find work and is hard up for cash) to respond in writing to the attorneys representing BetonSports. This is important in order to avoid the slim possibility of default judgements.
Your attorney may recommend that you contact the Department of Justice in St. Louis (where the BetonSports complaint was filed) and provide the DoJ with correspondence from BetonSports law firm.
Unless it can be demonstrated that your company is conducting business within a specific jurisdiction (such as New York where the BetonSports law firm is located), you may be able to require any possible action to commence in the jurisdiction where your company is based (see the landmark case we won: English Sports Betting vs. Tostigan here).
(Left: Gambling911.com landmark case should provide some guidance for other website owners)
In our eyes, any legal action that may be taken as a result of BetonSports suggestion that advertisers owe them money and that this is a primary reason why customers are still owed money, may fall under the category of a "frivolous lawsuit", but this is something an attorney would be better able to determine.
It is believed that BetonSports had not entered into written binding contracts with most ad venues, though this may not be the case with certain individuals and/or organizations. If a written contract had been entered into, it is likely that ad venues can argue BetonSports breached that contract by: 1. Shutting down, 2. Misrepresentation (failing to alert said ad venue of an ongoing investigation, 3. Engaging in alleged criminal activity not known to said ad venue (money laundering and racketeering).
To recap, Gambling911.com advises the following:
1. Seek a cheap attorney whose sole purpose is to respond back to BetonSports law firm explaining why you do not owe money to them. You do not want to risk a possible default judgment. The attorney should reference that BoS is being held in contempt of court by the Department of Justice so that this fact goes on record in any correspondence. DO NOT RESPOND TO BETONSPORTS REPRESENTATIVES ON YOUR OWN.
2. We strongly advise forwarding any correspondence from BetonSports legal representation to the Department of Justice in Missouri, but you may instead wish to collect said correspondence for a later date. It is entirely possible that ad venues may be called in as witnesses against BetonSports.
3. Make sure you are properly served. Emails do not qualify for proper service. Your attorney can better address the topic of "proper service".
4. Do not under any circumstances send funds to BetonSports as they are under investigation for money laundering. The Justice Department is alleging in its complaint that BetonSports is a criminal enterprise. IT IS AGAINST THE LAW TO KNOWINGLY SEND FUNDS TO A CRIMINAL ENTERPRISE. Any transactions between you and BetonSports must be handled through a court of law.
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Christopher Costigan, Gambling911.com
Originally published February 14, 2007 12:01 pm ET
