BetOnSports admit charges
BetOnSports, the London-based sports gambling website, has admitted to charges of racketeering brought against it by the U.S federal prosecutors.
The company has accepted that it had committed “repeated mail and wire fraud, operated an illegal gambling business, laundered money and admitted to multiple state gambling felony charges”.
Chief executive, David Carruthers, who was arrested in July, is still in the custody of authorities. Founder Stephen Kaplan also remains under arrest.
Under the terms of the admittance by BetOnSports, no more prosecutions can be brought against BetOnSports and there are no plans to charge anymore directors. However, it is possible that other executives may by forced to testify against their former boss, Mr Carruthers.
Jeff Demerath, Betonsports’ lawyer, said: “We’ll certainly co-operate with them. If they appeared on the stand they would certainly tell the truth.”
Demerath also went on to state that BetOnSports is now going to be “wound up and closed down".
In response to the plea by BetOnSports, U.S Attorney Catherine Hanaway, the judge overseeing the case, did not mince her words.
“This plea constitutes a submission by the company to the U.S. justice system," Hanaway said in a statement.
"This plea, combined with the terms of the civil junction, should put an end to the BetOnSports illegal gambling empire."
The sentencing is due for October 19, with fines of “double its financial gains or losses caused” possible. It also faces forfeitures and is required to pay back money to U.S customers who held money in an account with company as of June 1 2006.
However, according to Demerath, the company could escape the fines as the company is currently in liquidation.
Editor, Jackpot.co.uk - 2007-05-25 12:20:17