BETONSPORTS FOUNDER GETS 4-PLUS YEARS

[clevfan]

BetOnSports.com founder gets 4-plus years

(AP) – 15 minutes ago

ST. LOUIS — The founder of the online gambling site BetOnSports.com has been sentenced to more than four years in prison.

Gary Kaplan was sentenced Monday in federal court in St. Louis, ending a lengthy case involving the complex world of offshore sports gambling. He pleaded guilty in August to federal racketeering and other charges.

In a plea agreement, Kaplan must forfeit $43.6 million.

Kaplan founded the company in 1995, setting up entities in Aruba, Antigua and eventually Costa Rica. The firm solicited U.S. citizens to place sports wagers by phone and over the Internet. It became one of the world's largest online gambling firms.

Kaplan has already been jailed for 31 months. The Bureau of Prisons will determine if he is given credit for time served.

[Gambet]

In a plea agreement, Kaplan must forfeit $43.6 million.

LOL!!!!! I wonder if the USA will try to find the gamblers (especially from the USA) who lost this money and return it to its' rightful owners. After all, if he was operating an illegal gambling site then the people who placed bets with him should get their money back and not the corrupt USA Government who really did nothing to EARN it.

What a joke. And, for any of you that don't already know this, the only reason the Government enforces these anti-gambling laws is to get to the money. WOW!!!!! Corruption de jour.

[clevfan]

BetOnSports.com founder gets 4-plus years

By CHERYL WITTENAUER (AP) – 11 minutes ago

ST. LOUIS — The founder of the online gambling site BetOnSports.com was sentenced Monday to more than four years in prison, ending a lengthy investigation and prosecution into one of the world's largest offshore sports gambling companies.

Gary Kaplan, 50, must also forfeit $43.6 million in illegally obtained revenue as part of a plea agreement. Prosecutors have said that amounts to more than half of Kaplan's total worth.

Kaplan pleaded guilty in August to racketeering conspiracy, violating the Wire Wager Act and conspiring to violate it. Prosecutors had been investigating offshore sports gambling since 1997, and BetOnSports since 2001.

Kaplan, sentenced to four years and three months, could end up spending just 19 additional months behind bars. He has been jailed for two years and seven months since his March 2007 arrest in Puerto Rico. U.S. District Judge Carol Jackson said it will be up to the Bureau of Prisons to determine if he is given credit for time served.

Online gaming is illegal in the U.S., and in 2006, a federal grand jury indicted Kaplan, his company and several associates. Four other former executives, including two of Kaplan's siblings, have pleaded guilty.

Kaplan, a high-school dropout who started out as a New York bookie, founded the offshore betting company in 1995, setting up entities in Aruba, Antigua and eventually Costa Rica. The firm solicited U.S. citizens to place sports wagers by phone and over the Internet directly from their accounts.

In his guilty plea in August, Kaplan said BetOnSports had 1 million registered customers and accepted more than 10 million sports bets worth in excess of $1 billion in 2004 alone. His company, by then based in Costa Rica, employed 1,700 people.

Kaplan took BetOnSports public on the London Stock Exchange's Alternative Investment Market in 2004, which netted him more than $100 million that was deposited in Swiss bank accounts. For the next two years, he served as a BetOnSports consultant.

Prosecutors said the company falsely advertised that its gambling operations were legal, and misled gamblers into believing that money transferred to BetOnSports was safe and available to withdraw at any time. Instead, investigators said, the money was used to expand operations, including purchase of a rival betting firm.

When BetOnSports ceased operation in 2006, customers lost more than $16 million.

Kaplan told Jackson in August that he initially believed that adhering to the laws in Aruba, Antigua, Costa Rica, the Dominican Republic and the United Kingdom kept him in good stead with U.S. laws. But he said he became aware as early as 2000 that such dealings violated U.S. law, and got confirmation in a legal opinion in 2002. Yet, he kept operating.

The case could have been filed anywhere in the U.S., but the Eastern District of Missouri's former U.S. Attorney, Catherine Hanaway, was aggressive in going after online gambling operations.

[clevfan]

BetOnSports founder gets 51-month sentence

By Patrick M. O'Connell
ST. LOUIS POST-DISPATCH
11/02/2009

ST. LOUIS -- The founder of one of the world's most successful online gambling companies was sentenced Monday to 51 months in federal prison.

Gary Kaplan, 50, founder of BetOnSports, likely will serve a little more than one year behind bars. He will receive credit for the 31 months he has spent in jail since his 2007 arrest. A few more months may be shaved off for good behavior, lawyers said.

Kaplan pleaded guilty in August to charges of racketeering conspiracy, violations of the wire wager act and conspiracy.

U.S. District Judge Carol Jackson gave Kaplan the maximum sentence allowable under the terms of a pre-arranged plea agreement. Prosecutors also dropped 14 other charges under the agreement.

Jackson said Kaplan intentionally ignored U.S. laws with his gambling company, and deserved the sentence despite his remorseful statement in front of a crowded courtroom in downtown St. Louis.

"He made a gamble, " Jackson said. " ... and this is the payoff."

Jackson also cited Kaplan's two felonies from years ago -- for bookmaking and forgery -- and his efforts to avoid arrest as factors in her decision to impose the sentence.

"Regardless of how people feel about sports betting or wagering, these are criminal laws that have to be respected," Jackson said. " ... It's not up to us as individuals to pick and choose which laws we are going to follow and which one's we're not."

Kaplan also forfeits $43.65 million earned through the gambling enterprise. An additional $7 million from two accounts of his brother and sister also will be forfeited. The money will be turned over to the U.S. government.

Gamblers who lost money when BetOnSports collapsed are not eligible for restitution, although some may recover a small portion of their money as part of the liquidation being handled in Antigua.

Kaplan still has "tens of millions" of dollars in Swiss bank accounts, assistant U.S. Attorney Steven Holtshouser said.

"We are serious about enforcing anti-sports betting laws, even when carried out by off-shore entities, and especially when carried out by off-shore entities operated by U.S. citizens," Holtshouser said.

Kaplan, dressed in an orange jump suit with his legs shackled, apologized for the pain and embarrassment he has caused his family and said he has "paid a monumental price" for his actions.

One of his lawyers, Art Margulis, said the sentence was fair.

Kaplan's attorneys cited his contributions while jailed to charities such as the 100 Neediest Causes to supporting clean drinking water in Costa Rica as reasons why their client should receive a short stint under house arrest.

Instead, Kaplan will be headed to prison, perhaps in Marion, Ill., or Terre Haute, Ind.

[analyzer]

Originally Posted by clevfan

BetOnSports founder gets 51-month sentence

By Patrick M. O'Connell
ST. LOUIS POST-DISPATCH
11/02/2009

ST. LOUIS -- The founder of one of the world's most successful online gambling companies was sentenced Monday to 51 months in federal prison.

Gary Kaplan, 50, founder of BetOnSports, likely will serve a little more than one year behind bars. He will receive credit for the 31 months he has spent in jail since his 2007 arrest. A few more months may be shaved off for good behavior, lawyers said.

Kaplan pleaded guilty in August to charges of racketeering conspiracy, violations of the wire wager act and conspiracy.

U.S. District Judge Carol Jackson gave Kaplan the maximum sentence allowable under the terms of a pre-arranged plea agreement. Prosecutors also dropped 14 other charges under the agreement.

Jackson said Kaplan intentionally ignored U.S. laws with his gambling company, and deserved the sentence despite his remorseful statement in front of a crowded courtroom in downtown St. Louis.

"He made a gamble, " Jackson said. " ... and this is the payoff."

Jackson also cited Kaplan's two felonies from years ago -- for bookmaking and forgery -- and his efforts to avoid arrest as factors in her decision to impose the sentence.

"Regardless of how people feel about sports betting or wagering, these are criminal laws that have to be respected," Jackson said. " ... It's not up to us as individuals to pick and choose which laws we are going to follow and which one's we're not."

Kaplan also forfeits $43.65 million earned through the gambling enterprise. An additional $7 million from two accounts of his brother and sister also will be forfeited. The money will be turned over to the U.S. government.

Gamblers who lost money when BetOnSports collapsed are not eligible for restitution, although some may recover a small portion of their money as part of the liquidation being handled in Antigua.

Kaplan still has "tens of millions" of dollars in Swiss bank accounts, assistant U.S. Attorney Steven Holtshouser said.

"We are serious about enforcing anti-sports betting laws, even when carried out by off-shore entities, and especially when carried out by off-shore entities operated by U.S. citizens," Holtshouser said.

Kaplan, dressed in an orange jump suit with his legs shackled, apologized for the pain and embarrassment he has caused his family and said he has "paid a monumental price" for his actions.

One of his lawyers, Art Margulis, said the sentence was fair.

Kaplan's attorneys cited his contributions while jailed to charities such as the 100 Neediest Causes to supporting clean drinking water in Costa Rica as reasons why their client should receive a short stint under house arrest.

Instead, Kaplan will be headed to prison, perhaps in Marion, Ill., or Terre Haute, Ind.

We get fucked, and kaplan gets to walk with 10's of Millions of dollars in a few short years. Remind me to start up a gambling site, steal everyone's money, do 4 years, and then retire comfortably. I personally lost $5,600 to B.O.S.

The sad part of it is, BOS was part of a poker group that included about 9 different poker sites. I had just won that money in a couple of tournaments. BOS essentially was stealing from those other sites as well.

Lets see, go out and get a couple 1000 of the brightest poker players, get them to take money from multiple other sites, then confiscate their funds, real nice.

[homedog]

Kaplan also forfeits $43.65 million earned through the gambling enterprise. An additional $7 million from two accounts of his brother and sister also will be forfeited. The money will be turned over to the U.S. government.

Well that's a useful thing to do with the money. Give it to a group of degenerate gamblers who have proven that they can lose multi-billion dollars.

[howid]

Well that's a useful thing to do with the money. Give it to a group of degenerate gamblers who have proven that they can lose multi-billion dollars.

lmao... when your local degenerate gambler or drug addict cousin taps out/needs a fix and is at the end of their rope worst case scenario he robs a bank or gas station. when it's the government needing the cash influx high inducing fix they bust an easy target and confiscate their cash/stash.

[bernardoincr]

is a united states citizen and costa rican resident working in a costarican owned call center and on their payroll and paying taxes in costa rican also liable for prosecution from a united states jurisdiction????

[Mr Falcone]

Originally Posted by bernardoincr

is a united states citizen and costa rican resident working in a costarican owned call center and on their payroll and paying taxes in costa rican also liable for prosecution from a united states jurisdiction????

YES

[Juice]

Many in the true know believe that Jeff Allen and company walked with way more than that in the end. As stated before its somewhere between 40-200 million. Most say closer to the ladder. They didn't forefit much I dont believe at that. Buisness is better than ever for them too. Just like the offshores without Kaplan.

You have to admit. They got the right guy and company. It cleared out a tremendous amount of riff raff for the offshores and started the cleansing process that gets us to this point today.

A process that has not finished yet and has only just recently entered its end game phase.

[clevfan]

Kaplan's $43.6 million fine and jail term finalized in U.S.

Special to A.M. Costa Rica
Nov 4, 2009

Gary Stephen Kaplan, founder of BetonSports, a large Costa Rican offshore sports wagering business, was sentenced to 51 months in prison on multiple federal charges.

The confirmation of the sentence came from Michael W. Reap, acting U. S. attorney in St. Louis, Missouri.

Pursuant to a complex plea agreement, Kaplan, 50, entered pleas of guilty Aug. 14 to charges of conspiracy to violate the RICO statute, conspiring to violate the Wire Wager Act and violating the Wire Wager Act. He appeared Monday for sentencing before U. S. District Judge Carol E. Jackson in St. Louis.

As part of the plea, Kaplan has forfeited to the United States $43.6 million in criminal proceeds. An additional amount of approximately $7 million has been forfeited in related proceedings, bringing the total forfeiture in this case to over $50 million.

Kaplan admitted that beginning in the mid to late 1990s, he set up business entities offshore in Aruba, Antigua and eventually Costa Rica to provide sportsbook services to U.S. residents through Internet Web sites and toll-free telephone numbers. He founded, operated, and controlled, with other co-conspirators, the enterprise known as BetOnSports.

According to the U.S. Attorney's Office:

BetOnSports advertised heavily in the U.S. to solicit U.S. residents to place sports wagers by telephone and over the Internet. BetOnSports-related entities controlled toll free numbers and domain names advertised by BetOnSports. Technologically, Kaplan’s toll-free telephone lines terminated in Houston, Texas or Miami, Florida and then were forwarded to Costa Rica by satellite transmitter or fiber-optic cable. Some of Kaplan’s Web servers were located in Miami and were remotely controlled from Costa Rica. U.S. residents became customers of BetOnSports by depositing funds on account and placing wagers over U.S. toll-free telephone lines and via the Internet using the deposited funds. Funds were sent from the U.S. customers to operations outside the U.S. and BetOnSports sent winnings from outside the U.S. to its U.S. customers.

BetOnSports was highly successful and attracted a large number of U.S. customers. By 2004, the BetOnSports organization’s principal base of operations in Costa Rica employed approximately 1,700 people. During the year ended Jan.31, 2004, BetOnSports had close to 1 million registered customers, accepted over 10 million sports bets in a cumulative gross amount that exceeded $1 billion. In mid-2004, Kaplan made a successful public offering of the stock of BetOnSports on the London Alternative Investment Market that netted him over $100,000,000. Those funds eventually found their way into various Isle of Jersey trusts which invested the funds in Swiss bank accounts.

Reap stated: “Kaplan was unique in the scope and scale of his illegal operation. Despite his immense profits, he is living in federal custody. This case should serve as a warning to others who might choose to defy the laws of the United States on such a grand scale.” Reap also noted that, “Kaplan’s business model itself was built on a wager that the U.S. could not and would not enforce its anti-sports book laws to reach Kaplan. Today, Kaplan lost that wager.”

“In addition to a lengthy prison sentence, Mr. Kaplan forfeited over $43 million to the United States government” said Toni Weirauch, special agent in charge of IRS Criminal Investigation. “By taking away their assets and profits, we deprive them of the proceeds of their criminal activity.”

“Gary Kaplan was sentenced to the maximum under the plea agreement which sends a message to those operating illegal offshore gambling enterprises,” said Roland Corvington, special agent in charge of the FBI in St. Louis. “In addition to being in prison, hopefully some of the money forfeited will go to useful purposes such as fighting other Internet-related crimes, such as catching child predators who think they can hide on-line.”

This sentencing concludes a lengthy investigative and prosecution effort by several law enforcement agencies, including the IRS and the FBI. Kaplan has been in custody without a bond set since his arrest in March, 2007.

The governments of the Isle of Jersey and Switzerland gave assistance with the prosecution, the U.S. government said.

Neil Scott Kaplan, Penelope Ann Tucker and Lori Beth (Kaplan) Multz also have entered guilty pleas in the case and were scheduled to be sentenced Tuesday, but the outcome was not available.

David Caruthers, the No. 2 man at BetOnSports, also has pled guilty and will be sentenced in January.

The original indictment on BetOnSports dates from June 1, 2006. It named 14 persons including Kaplan.