by Anton Johan
Gary Kaplan, founder of the US betting site BetOnSports, that was once
listed on the London Stock Exchange, has been sentenced to jail time by a
Missouri court.
Kaplan has been under arrest since 2007 when he was apprehended by
authorities in Puerto Rico.
At the time, Kaplan was charged with running an illegal offshore gambling
site, fraud and racketeering.
BetOnSports has been under investigation since 2001, when US authorities
stepped up their activity to halt offshore gambling.
BetOnSports was founded in 1995 and by 2004 was a massive betting operation,
taking bets from all over the world and employing 1700 people. At its peak,
BetOnSports boasted over one million registered customers.
In 2004, Kaplan sold BetOnShares on the London Stock Exchange, earning him a
staggering £61 million, which was deposited into his Swiss Bank accounts.
Kaplan has spent the last two years and seven months under house arrest, time
that will go towards his total sentencing of 4 years in prison.
In addition, under the terms of a plea bargain reached with the US Department
of Justice, Kaplan will release funds to the value of $43 million from his Swiss
Bank accounts as a forfeiture payment.
On sentencing Kaplan, Judge Carol Jackson said that the 50 year old had
"continued to disrespect the law", knowing that his betting activities were
illegal.
"Mr. Kaplan made an educated decision, a gamble if you will," she said. "Now
here's the payoff."
When BetOnSports ceased operations in 2006, following the introduction of the
UIGEA in the United States, players lost over $16 million.
Three former executives of the group, among them two of Kaplan's siblings,
were sentenced to 10 months house arrest.
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