Carruthers Plead Not Guilty
David Carruthers, the former chief executive of one of the biggest online gambling companies worldwide, BetOnSports, will stay under federal custody after pleading not guilty to charges of mail and wire fraud and racketeering.
The US government charged BetOnSports and its employees for allegedly taking billions of dollars in wagers from U.S. residents via online transactions without paying excise taxes.
Other BetOnSports employees and associates named in a federal 22-count indictment also entered not guilty pleas. The siblings of BetOnSports founder Gary Kaplan, namely Neil Kaplan and Lori Kaplan Multz, likewise pleaded not guilty.
Meanwhile, Costa Rica-based Gary Kaplan, who used to be a New York-area bookie, remained at large despite the indictment.
The Justice Department is seeking the forfeiture of $4.5 billion, several cars and cutting-edge computers from the defendants.
However, BetOnSports PLC, a British online gambling company, did not send representatives for the hearing.
In reaction, U.S. Attorney Catherine Hanaway said, "They (BetOnSports PLC) have not had any regard for the law. And to not appear would be a further step along that same path."
Federal agents arrested Carruthers on July 16 at the Dallas-Fort Worth International Airport when he was en route to Costa Rica, where BetOnSports has an office.
BetOnSports has fired Carruthers following his arrest. The firm has also agreed to a judge's order to stop accepting U.S. bets.
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