BetOnSports Ignores Federal Prosecution

As reported by the St. Louis Post-Dispatch: "BetOnSports, one of the largest online betting and gambling companies in the world, will ignore a federal criminal prosecution and civil case aimed at shutting its billion-dollar U.S. operation, a federal prosecutor said in court Monday.

"BetOnSports lawyers failed to show up Monday morning for arraignment of the company on criminal charges that include mail fraud, wire fraud and racketeering.

"They also did not attend a civil hearing in the afternoon. There, federal prosecutors asked a judge to make permanent a temporary order that bans the company from doing business with U.S. customers and seeks the forfeiture of more than $4.5 billion and other property.

"Marty Woelfle, of the Justice Department's organized crime and racketeering section, in Washington, said Steve Cohen, a New York lawyer hired to advise the company, told her BetOnSports would not answer the charges.

"…The case represents the largest prosecution of an Internet gambling company ever, said U.S. Attorney Catherine Hanaway.

"…BetOnSports is listed on the London Stock Exchange. It has offices or equipment in Costa Rica and Antigua, where gambling is legal, so there is no extradition of participants to countries where it is not…"

2006-08-01