By Margaret Cronin Fisk and Benjamin Israel
Jan. 5 (Bloomberg) -- Betonsports Plc lawyers didn't appear for the company's arraignment today on charges of violating U.S. gambling laws, opening the U.K. Internet bookmaker to sanctions.
Jeffrey Demerath, an attorney for Betonsports, messaged the government that his client told him not to appear in the St. Louis court. Michael Fagan, a prosecutor, told Magistrate Judge Mary Ann Medler he will ask next week that Betonsports be ordered to show why it shouldn't be punished.
``If they don't show up, they can be held in contempt of court and fined for every day they don't show up,'' said James Montana, a former federal prosecutor not involved in the case.
A judge might order London-based Betonsports tried in absentia if it continues to avoid court, giving the company no chance to defend itself, and the company might be fined for violating laws against electronic betting across state lines, Montana said.
``They seem to be putting themselves at risk,'' said Montana, of Vedder Price Kaufman & Kammholz in Chicago.
``I hope Mr. Demerath can talk sense to his client so we can work something out,'' Fagan, an assistant U.S. attorney, said in court. Demerath confirmed in an interview that his client instructed him not to appear. He declined to comment further.
A 22-count indictment unsealed July 17 charged the company, its founder Gary Kaplan, former Chief Executive Officer David Carruthers and others with racketeering and demanded the forfeiture of $4.5 billion.
Not-Guilty Pleas
Internet gambling, a $12 billion industry, violates federal laws against betting across state lines by telephone or other electronic means, prosecutors said.
Seven individual co-defendants, including Carruthers, pleaded not guilty. Carruthers, arrested as he changed planes at a Dallas area airport, has been under house arrest since Aug. 16 when he posted a $1 million bond. Kaplan and two other defendants are at large.
Betonsports signed an agreement in November consenting to the company's court-ordered ban from the U.S. market.
Carruthers, Kaplan's brother and sister and four people whose Miami direct-mail marketing business did work for Betonsports pleaded not guilty in a July court appearance before U.S. District Judge Carol E. Jackson in St. Louis.
The individual defendants asked Jackson to throw out the criminal case, arguing the indictment violates a World Trade Organization treaty.
Trade Treaty
``The cross-border supply of gambling and betting services'' from Betonsports offices in Costa Rica is a service ``which the United States committed to not prohibit'' when it joined the WTO, attorney Alan Ross said in court papers. Ross represents William Hernan Lenis, a direct-mail marketer.
The company maintained offices in Costa Rica and Antigua. In 2005, the World Trade Organization ruled U.S. laws criminalizing Internet-based remote-access gambling violated WTO treaty obligations, Ross, of the Miami law firm Robbins, Tunkey, Ross, Amsel, Raben & Waxman, said in court papers.
Prosecutors haven't filed papers opposing that motion.
Betonsports suspended trading of its shares on the London Stock Exchange a day after the indictment was unsealed. It fired Carruthers days later.
The company took in wagers in 2004 totaling $1.25 billion, 98 percent of which was sports bets placed by U.S. gamblers using Betonsports' Web sites and U.S. phone lines, Jackson said in an order making its U.S. ban permanent.
Refund Requests
The order ended the government's civil case against the company, filed the day the indictment was unsealed.
Betonsports has received nearly 5,000 requests for refunds. Demerath last week said the company will comply with Jackson's order that they be repaid.
A U.S. law signed by President George W. Bush in October bars credit card companies from collecting payments for Internet gambling transactions.
The criminal case is U.S. v. Betonsports, 06-cr-337, U.S. District Court, Eastern District of Missouri (St. Louis).
Jan. 5 (Bloomberg) -- Betonsports Plc lawyers didn't appear for the company's arraignment today on charges of violating U.S. gambling laws, opening the U.K. Internet bookmaker to sanctions.
Jeffrey Demerath, an attorney for Betonsports, messaged the government that his client told him not to appear in the St. Louis court. Michael Fagan, a prosecutor, told Magistrate Judge Mary Ann Medler he will ask next week that Betonsports be ordered to show why it shouldn't be punished.
``If they don't show up, they can be held in contempt of court and fined for every day they don't show up,'' said James Montana, a former federal prosecutor not involved in the case.
A judge might order London-based Betonsports tried in absentia if it continues to avoid court, giving the company no chance to defend itself, and the company might be fined for violating laws against electronic betting across state lines, Montana said.
``They seem to be putting themselves at risk,'' said Montana, of Vedder Price Kaufman & Kammholz in Chicago.
``I hope Mr. Demerath can talk sense to his client so we can work something out,'' Fagan, an assistant U.S. attorney, said in court. Demerath confirmed in an interview that his client instructed him not to appear. He declined to comment further.
A 22-count indictment unsealed July 17 charged the company, its founder Gary Kaplan, former Chief Executive Officer David Carruthers and others with racketeering and demanded the forfeiture of $4.5 billion.
Not-Guilty Pleas
Internet gambling, a $12 billion industry, violates federal laws against betting across state lines by telephone or other electronic means, prosecutors said.
Seven individual co-defendants, including Carruthers, pleaded not guilty. Carruthers, arrested as he changed planes at a Dallas area airport, has been under house arrest since Aug. 16 when he posted a $1 million bond. Kaplan and two other defendants are at large.
Betonsports signed an agreement in November consenting to the company's court-ordered ban from the U.S. market.
Carruthers, Kaplan's brother and sister and four people whose Miami direct-mail marketing business did work for Betonsports pleaded not guilty in a July court appearance before U.S. District Judge Carol E. Jackson in St. Louis.
The individual defendants asked Jackson to throw out the criminal case, arguing the indictment violates a World Trade Organization treaty.
Trade Treaty
``The cross-border supply of gambling and betting services'' from Betonsports offices in Costa Rica is a service ``which the United States committed to not prohibit'' when it joined the WTO, attorney Alan Ross said in court papers. Ross represents William Hernan Lenis, a direct-mail marketer.
The company maintained offices in Costa Rica and Antigua. In 2005, the World Trade Organization ruled U.S. laws criminalizing Internet-based remote-access gambling violated WTO treaty obligations, Ross, of the Miami law firm Robbins, Tunkey, Ross, Amsel, Raben & Waxman, said in court papers.
Prosecutors haven't filed papers opposing that motion.
Betonsports suspended trading of its shares on the London Stock Exchange a day after the indictment was unsealed. It fired Carruthers days later.
The company took in wagers in 2004 totaling $1.25 billion, 98 percent of which was sports bets placed by U.S. gamblers using Betonsports' Web sites and U.S. phone lines, Jackson said in an order making its U.S. ban permanent.
Refund Requests
The order ended the government's civil case against the company, filed the day the indictment was unsealed.
Betonsports has received nearly 5,000 requests for refunds. Demerath last week said the company will comply with Jackson's order that they be repaid.
A U.S. law signed by President George W. Bush in October bars credit card companies from collecting payments for Internet gambling transactions.
The criminal case is U.S. v. Betonsports, 06-cr-337, U.S. District Court, Eastern District of Missouri (St. Louis).
