BetonSports Founder Could be Close to Settling with US Government

Written by:
C Costigan
Published on:
Aug/19/2008
BetonSports Office

Gary Kaplan, the captured founder of online gambling's once largest sports betting outfit BetonSports, could be settling with US authorities for an untold amount of money according to various sources throughout Costa Rica and those close to his case.

BetonSports - once publicly traded on the London Stock Exchange - was forced to shut down following indictments of Kaplan, former CEO David Carruthers, and eight others. Three of those charged and involved in marketing the company via a "mobile bus traveling the US with gambling paraphernalia" entered into plea agreements just last week.

"He (Gary) has got millions of dollars in the bank and the best lawyers money can buy," said one source, who believes that a stiff fine and likely no more than a one year sentence is likely to be handed down.

Amazingly, close confidants of Kaplan's believe he will return to the online gambling scene.

"It's all he knows and I have no doubt he would be able to compete with the rest of the industry once more," the source relayed to Gambling911.com.

"You cannot fight the US Government," warned former Miami Beach Mayor, Alex Daud, whose book, Sins of South Beach, details his own fight with US law enforcement over corruption charges that ultimately led him to a brief prison stint. Daud, at the time, had resources to fight, but admitted to Gambling911 if he had to do it over again "I would have fled to another country that does not have an extradition agreement with the US."

In Kaplan's case, he fled to another country - the Dominican Republic. That island nation's law enforcement was more than willing to assist the US in capturing BetonSports' founder just over six months after his indictment. Kaplan has since been deemed a "flight risk" and is being held behind bars. Carruthers - a British national who routinely appeared on US television shows proclaiming how he was immune from the long arm of US law - was the first to be picked up while changing flights at the Dallas Fort Worth Airport. He has since been placed on house arrest and permitted to run the Boston Marathon, with his ankle monitoring bracelet.

Meanwhile, liquidators in charge of paying off customers of the besieged sports betting company still owed monies have been unable to locate all possible claimants. Likewise, liquidators have been unable or unwilling to take legal action against at least two main payment processors accused of holding millions of BetonSports funds.

"BetonSports paid for my new home," the owner of one processor is rumored to have been telling those within the industry.

Tommy, a customer waiting years to be paid a few thousand by BetonSports liquidators told Gambling911.com "I told (the liquidators) they can keep the $15," referring to a letter advising him that this was the amount he would be entitled to for the time being.

Those close to Kaplan claim it was BetonSports former CEO, David Carruthers, who caused the company to go under "through mismanagement and possible misappropriation of funds".

"He (David) was also sleeping with half the staff," another Kaplan cohort alleges.

In the end, many within the firm believe that payment processors have ultimately prevented BoS customers from being paid. Mismanagement of funds remained the root cause, however.

Kaplan officially left the company more than a year prior to the indictments being handed down though he remained on as a "consultant" to the firm.

-----

Christopher Costigan, Gambling911.com Publisher

Gambling News

PA Gambling Market Up 3.2% With Sports Betting

PA Gambling Market Up 3.2% With Sports Betting

The Pennsylvania gambling market witnessed a 3.2 percent increase in the month of January.

Governor Chris Christie to Join Sports Betting Hall of Fame at Betting on Sports America

Governor Chris Christie to Join Sports Betting Hall of Fame at Betting on Sports America

Governor Chris Christie is to be recognised by the sports betting industry for the pioneering role that he played in widening the scope for sports betting in the US.

Oddsshark Banned From New Jersey

Oddsshark Banned From New Jersey

The popular odds provider website Oddsshark.com has apparently been banned from the state of New Jersey.

Bitcoin Sees First Sharp Rise in Months: Possible End to Five-Month Losing Streak

Bitcoin Sees First Sharp Rise in Months: Possible End to Five-Month Losing Streak

Following a sharp decline in its price from over $6000 to around $3500 these last five months, Bitcoin was at a one-month high Monday, up nearly 7% on the day to just over $3800.

Malta Suspends Series of Online Gambling Licenses

Malta Suspends Series of Online Gambling Licenses

This week, the ‘Malta Gaming Authority -MGA’ has announced a trio of licensee suspensions for online gambling companies.

Syndicate