BETONSPORTS DIRECTORS UNLIKELY TO SHOW UP IN ST. LOUIS
But the company will be paying for CEO's legal costs as he seeks bail
The St. Louis Post-Despatch today (Monday) published an article on the BetonSports clash with American federal authorities due to be heard in court this afternoon.
Two matters will be heard. In one the dismissed CEO of BetonSports, David Carruthers will be arraigned on charges from a Missouri grand jury indictment, to which his lawyer Tim Evans has already said he will plead not guilty. Evans will also attempt to have Carruthers released on bail, which has thus far been opposed by the Department of Justice since he was arrested on July 16.
The other hearing will be on a federal district court restraining order granted to federal authorities to stop BetonSports from accepting bets from US gamblers and return deposits to US gamblers. The order expires today (July 31) and thus far BetonSports has closed its main site to US players but as far as is known has not complied with other requirements of the order.
The Despatch speculates on whether any of the overseas directors of BetonSports will be present at the hearings, and expresses doubt that they will, quoting "an industry insider" who said his job was at risk if he publicly identified himself, but revealed that executives at BetOnSports have discussed ignoring federal prosecutors' biggest effort in years to shut down offshore gambling and sports betting.
Other sources report that even though not present, BetonSports has confirmed they will be footing the bill for what are likely to be substantial legal costs incurred by Carruthers.
Interviewed by the Despatch, US attorney Catherine Hanaway who has been one of the driving forces behind the prosecutions refused to go into detail on likely outcomes if BetonSports ignored the court efforts, saying only: "There are further steps that could be taken down the line."
She also would not comment on whether any other cases are pending against online gambling operations. Asked if her office would pursue individual gamblers, Hanaway said, "We will continue to go after the worst first."
Today's court hearing has been called to discuss a restraining order that would ban BetOnSports from accepting business from the U.S., provide refunds for customers and force the company and executives to give up their business records, $4.5 billion and other property.
The federal government claims in court filings that BetOnSports took in more than $3.5 billion just from 2001 to 2004, by using more than 700 Web addresses and dozens of toll-free numbers to take bets. Federal investigators have reviewed company files, placed undercover bets and tracked the bets of 18 gamblers who used Western Union to send money, including two in the St. Louis area who sent a total of $40 000.
The company's most recent annual report adds almost $1.1 billion to that total from the 9.9 million bets placed online and over the phone in 2005. The 2.9 million phone bets averaged about $201 apiece, compared with the average bet of $72 for the 7 million bets placed online.
Federal prosecutors say that the company fraudulently claimed that its gambling was "legal and licensed." BetOnSports is also alleged to have committed wire and mail fraud by allowing U.S. residents to make bets, send money and accept money on the Internet and through telephone lines and by allowing gamblers to receive payment through couriers, court documents say.
BetOnSports has spent millions advertising its services through fliers mailed to St. Louis and across the country, as well as on television, radio and Internet ads that tout it as the "world's largest, legal and licensed sportsbook," according to documents filed by federal prosecutors. The company parked a logo-wrapped RV near sports stadiums in St. Louis and elsewhere to sign up gamblers, including an undercover federal agent.
http://www.online-casinos.com/news/news2605.asp
But the company will be paying for CEO's legal costs as he seeks bail
The St. Louis Post-Despatch today (Monday) published an article on the BetonSports clash with American federal authorities due to be heard in court this afternoon.
Two matters will be heard. In one the dismissed CEO of BetonSports, David Carruthers will be arraigned on charges from a Missouri grand jury indictment, to which his lawyer Tim Evans has already said he will plead not guilty. Evans will also attempt to have Carruthers released on bail, which has thus far been opposed by the Department of Justice since he was arrested on July 16.
The other hearing will be on a federal district court restraining order granted to federal authorities to stop BetonSports from accepting bets from US gamblers and return deposits to US gamblers. The order expires today (July 31) and thus far BetonSports has closed its main site to US players but as far as is known has not complied with other requirements of the order.
The Despatch speculates on whether any of the overseas directors of BetonSports will be present at the hearings, and expresses doubt that they will, quoting "an industry insider" who said his job was at risk if he publicly identified himself, but revealed that executives at BetOnSports have discussed ignoring federal prosecutors' biggest effort in years to shut down offshore gambling and sports betting.
Other sources report that even though not present, BetonSports has confirmed they will be footing the bill for what are likely to be substantial legal costs incurred by Carruthers.
Interviewed by the Despatch, US attorney Catherine Hanaway who has been one of the driving forces behind the prosecutions refused to go into detail on likely outcomes if BetonSports ignored the court efforts, saying only: "There are further steps that could be taken down the line."
She also would not comment on whether any other cases are pending against online gambling operations. Asked if her office would pursue individual gamblers, Hanaway said, "We will continue to go after the worst first."
Today's court hearing has been called to discuss a restraining order that would ban BetOnSports from accepting business from the U.S., provide refunds for customers and force the company and executives to give up their business records, $4.5 billion and other property.
The federal government claims in court filings that BetOnSports took in more than $3.5 billion just from 2001 to 2004, by using more than 700 Web addresses and dozens of toll-free numbers to take bets. Federal investigators have reviewed company files, placed undercover bets and tracked the bets of 18 gamblers who used Western Union to send money, including two in the St. Louis area who sent a total of $40 000.
The company's most recent annual report adds almost $1.1 billion to that total from the 9.9 million bets placed online and over the phone in 2005. The 2.9 million phone bets averaged about $201 apiece, compared with the average bet of $72 for the 7 million bets placed online.
Federal prosecutors say that the company fraudulently claimed that its gambling was "legal and licensed." BetOnSports is also alleged to have committed wire and mail fraud by allowing U.S. residents to make bets, send money and accept money on the Internet and through telephone lines and by allowing gamblers to receive payment through couriers, court documents say.
BetOnSports has spent millions advertising its services through fliers mailed to St. Louis and across the country, as well as on television, radio and Internet ads that tout it as the "world's largest, legal and licensed sportsbook," according to documents filed by federal prosecutors. The company parked a logo-wrapped RV near sports stadiums in St. Louis and elsewhere to sign up gamblers, including an undercover federal agent.
http://www.online-casinos.com/news/news2605.asp