Three plead guilty in BetOnSports online gaming case

[clevfan]

Three plead guilty in BetOnSports online gaming case

By Robert Patrick
ST. LOUIS POST-DISPATCH
08/07/2008

Three Florida men pleaded guilty in federal court in St. Louis Wednesday to online gambling-related charges, marking a first in attempts to shut down online gambling, prosecutors said.

The three are the first individuals to plead guilty in the case involving BetOnSports, which was once one of the largest online gambling companies in the world, and the first convictions of a "non-gambling entity" like an advertising or marketing company for a gambling-related crime, Assistant U.S. Attorney Steven Holtshouser said.

BetOnSports founder Gary Â*Kaplan and former Chief Executive David Carruthers were among those indicted in 2006 on racketeering conspiracy charges and accused of reaping billions illegally from U.S. online gamblers.

The charges effectively killed the company, which pleaded guilty last year and agreed to cooperate with the investigation.

Prosecutors have now reached the same agreement with a family that was heavily involved in promoting BetOnSports in the United States.

William Hernan Lenis, 55, who is known as "Bill," pleaded guilty to interstate transportation of gambling paraphernalia and admitted that his company Mobile Promotions sent logo-wrapped motor homes to sporting events across the country to promote BetOnSports, recruit new gamblers and collect signatures to try to change gambling laws.

The RVs had computers and mobile phones so gamblers could place bets, and one was parked at a Rams home game on Oct. 20, 2002.

Bill Lenis also admitted that Lenis family members, including son William Luis Lenis, known as "Will," nephew Manny Lenis and daughter Monica Lenis worked with him on the project.

Bill Lenis also admitted that his company Direct Mail Expertise mailed 2 million to 3 million ads for BetOnSports per year between 2000 and 2006 and dealt directly with Kaplan relatives Neil Kaplan and Lori Kaplan.

Will Lenis, 28, pleaded guilty to transmission of wagering information and faces a year or less in prison. He admitted that he helped an undercover police officer make a bet in a BetOn-Sports RV in Jacksonville, Fla., on Dec. 22, 2002.

Manny Lenis, 29, pleaded guilty to a misdemeanor charge of failing to pay a wagering tax and is likely to face probation or six months or less in prison. He admitted accepting a bet from an undercover police officer on the same date as his cousin.

In exchange for the guilty pleas, prosecutors agreed to drop all other charges against the men, and to drop charges against Monica Lenis.

Will Lenis and Manny Lenis also may be rewarded under federal sentencing guidelines with even less time for cooperating with investigators.

Holtshouser would not comment on how the pleas might affect the cases against the other defendants.

"If they testify truthfully, I don't think it would have any … adverse effect on Neil Kaplan's case," said his lawyer, Brian Steel.

Reached in London, Gary Kaplan's lawyer, Chris Flood, said, "This has no effect on Mr. Â*Kaplan's defense and we understand why … the Lenis family would feel compelled to enter their pleas."

[clevfan]

3 Miami men plead guilty in online gambling case

By JIM SALTER 08.07.08, 3:14 PM ET

ST. LOUIS - Three Florida men associated with the online gambling firm BetOnSports face sentencing in October after pleading guilty to federal charges.

William Hernan Lenis, his son, Will Lenis, and nephew Manny Lenis entered the pleas Wednesday in St. Louis. All three are from Miami.

Cases are still pending against BetOnSports founder Stephen Kaplan and former Chief Executive David Carruthers.

The U.S. Attorney's office in St. Louis in 2006 accused BetOnSports, its executives and others of illegally accepting bets online. Later that year, the government settled civil charges against BetOnSports that permanently barred the company from accepting any bets from gamblers in the U.S. The company itself pleaded guilty last year.

The case has been watched closely by the multi-billion-dollar online gambling industry.

Officials with the U.S. Attorney's office in St. Louis declined comment, citing the pending cases against Kaplan and Carruthers.

William Lenis, 55, pleaded guilty to interstate transportation of gambling paraphernalia. Authorities said his company, Mobile Promotions, sent motor homes to sporting events around the country to promote BetOnSports. Will Lenis, 28, and Manny Lenis, 29, worked with him in promoting BetOnSports, the government alleged.

William Lenis also admitted that his company, Direct Mail Expertise, mailed ads for BetOnSports from 2000 through 2006.

Will Lenis pleaded guilty to transmission of wagering information. Manny Lenis pleaded guilty to a misdemeanor of failing to pay a wagering tax.

In exchange for the pleas, other charges against the men were dropped. The government also agreed to drop charges against William Lenis' daughter, Monica Lenis.

William Lenis' attorney, Alan Ross, said the plea agreement avoided a long and costly trial.

"These are the marketing people that do direct mail, the advertising," Ross said. "They have nothing to do with the operation of the Web site, gaming - nothing. The government has launched this campaign against Internet gambling. Unfortunately, they sometimes leave in the wake the people who were not necessarily involved."

Richard Sindel, the attorney for Manny Lenis, said his client was a bit player in the case. He said he was pleased in the deal which could result in probation and no jail time.

Sentencing for all three men is Oct. 24.

The charges in the BetOnSports case were filed using a 1960s-era law known as the Wire Act, which prohibits placing bets on sports events over the phone.

[GoodKarmaGuy]

William Lenis, 55, pleaded guilty to interstate transportation of gambling paraphernalia. Authorities said his company, Mobile Promotions, sent motor homes to sporting events around the country to promote BetOnSports. Will Lenis, 28, and Manny Lenis, 29, worked with him in promoting BetOnSports, the government alleged.

William Lenis also admitted that his company, Direct Mail Expertise, mailed ads for BetOnSports from 2000 through 2006.

I feel bad for the guy but based on the above. In theory, couldn't they nail any company that accepted advertising from an online sports betting operation including poker and put them up on charges and have them face jail time? What about the guys who delivered the magazines across state lines? How about using the US Postal service to deliver those magazines across which had the advertising in them? You could fill multiple prisons just with the people connected to the online sports betting and poker advertising industry.