Lawyers On Both Sides In Civil And Criminal Charges Against Company Seeking Settlement Of Charges Being Brought Against BetOnSports

BetOnSports was reported this week in the St. Louis Post Dispatch to be the target of federal prosecutors in St. Louis and Washington. The London-based company, which is an Internet gambling company, is seeking a settlement with respect to civil and criminal charges that have been brought against the company.  All this has been explained by lawyers from both sides who are dealing with the court case.

The lawyer for BetOnSports whose name is Jeffrey Demerath, has told United States District Court Judge Carol Jackson that his company has one interest, and that is in having the problem resolved.  The lawyer told Jackson that it was their intent through discussions with the court, to resolve all charges both civil and criminal, being brought against the company.

The attorney representing the United States, United States Attorney Michael Fagen, told Jackson that he thought that the problem could be resolved amicably.  With this in mind, Jackson decided to continue a temporary restraining order that had been set, until October 16th, so that the competing parties might be able to negotiate a settlement.  When the hearing was completed lawyers from both sides refused to comment.

The first time that a lawyer for the company has been seen in the federal court in St. Louis was Tuesday.  At first the federal prosecutors were not able to serve the company with proper legal papers.  The Company C. E. O. David Carruthers was given details of the charges, which were being brought against his company following his July arrest at a Texas airport.  BetOnSports fired Carruthers when he was still in jail.

Judge Jackson apparently holding a notice from Demerath that he had entered the case for the company, said that she thought that this was good news. 

In June of this year the employees of BetOnSports, and other companies linked to bet on sports, as well as individuals, were indicted for mail fraud, on charges of racketeering, as well as wire fraud.  U.S. prosecutors have said that they knowingly went against the law when they allowed customers from the United States to place bets and to gamble over the phone and online.

CEO of BetOnSports, David Carruthers, was taken into custody when his plane stopped at the Dallas – Fort Worth airport on the 16th of July.  He was charged after being taken from the plane while on his way to his home in Costa Rica.

A bond of $1 million has been set for Carruthers, which has been paid and he is free although under home detention, and is now staying in a St. Louis hotel.

A temporary restraining order was awarded to prosecutors.  The order stopped the company from allowing U.S. customers to bet on BetOnSports  web site.  The order also requires that the company pay back $4.5 billion as well as additional property and in addition, they must hand over their business records.

Between the years of 2001 and 2005, it is estimated that approximately $4.6 billion was wagered with the company BetOnSports.  This is according to court documents and in accordance with the company's annual report.  Of the 9.9 million bets that were placed in the year 2005, most of these were placed by U.S. bettors.  On August 11th, the company's executives may it known that BetOnSports had ceased accepting bets from players living in the United States, and added that it intended to refund money to customers as it became available.  The only issue that is left at this time then, is that of refunds as well as dealing with a fine and the company’s handing over of its documents.

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