Feeds

BetOnSports founder Kaplan jailed for four years

Racket rumbled

Combat fraud and increase customer satisfaction

The founder of BetOnSports.com was imprisoned for four years and three months on Monday after pleading guilty to violating the Wire Wager Act and racketeering offences.

Gary Kaplan, 50, pleaded guilty to the offences and agreed to pay $43.6m as part of a plea bargaining agreement. The huge fine reportedly amounts to around half of Kaplan's net worth.

Kaplan, who's been languishing in jail since his March 2007 arrest in Puerto Rico, may have to spend a further year behind bars. Three other BetOnSports.com execs have also pleaded guilty to various offences and face a sentencing hearing later on Tuesday, with a fourth facing sentencing at a later date, AP reports.

BetOnSports.com fell foul of US prosecutors for falsely advertising that its online gambling operations were legal and that money deposited in accounts was available for immediate withdrawal. Punters lost more than $16m when BetOnSports closed is books in 2006.

Kaplan received legal opinion that BetOnSports.com operations, licensed in the Caribbean, flouted US laws as far back as 2000. Despite this the online gambling firm continued to solicit business from US gamblers.

In the run up to sentencing by a Missouri Court, Kaplan made six-figure contributions to St Louis area charities over recent months. While acknowledging this generosity, District Judge Carol Jackson said she was "a little put off" by letters to her in support of Kaplan that followed these charitable contributions. ®

SANS - Survey on application security programs

More from The Register

next story
EU: Let's cost financial traders $400m a day, because EVIL BANKERS. Right?
Wait 'til this one hits your pension fund where it hurts
Systems meltdown plunges US immigration courts into pen-and-paper stone age
Massive outage could last four weeks, sources claim
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Edward Snowden on his Putin TV appearance: 'Why all the criticism?'
Denies Q&A cameo was meant to slam US, big-up Russia
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Judge halts spread of zombie Nortel patents to Texas in Google trial
Epic Rockstar patent war to be waged in California
US Supreme Court supremo rakes Aereo lawman in oral arguments
Antenna-array content streamers: 'Ruling against us could dissipate the cloud'
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.