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Internet Gambling Kingpin Found And Arrested In Dominican Republic
BetOnSports.com Founder Steve Kaplan Has Been Arrested
March 31, 2007
Federal Prosecutors in the United States have confirmed the capture and arrest of Gary Stephen Kaplan, founder of the internet sports betting company BetOnSports.com. Kaplan was apprehended at a hotel in the Dominican Republic as a joint effort of Dominican and US Authorities.
Steve Kaplan, who has used the alias' Greg Kaplan and Greg Champion, is the founder of the internet sports betting giant, BetOnSports.com. Kaplan was arrested in New York in 1992 for operating an illegal bookmaking business, after which he moved his operation to Florida. In 1996 or 1997 Kaplan moved his operation offshore to Costa Rica, where the internet sports betting empire was formed.
Kaplan's sports betting business grew to encompass more than 700 internet domains and operated under multiple brands, such as Millennium and MVP Sportsbook. As the company became more powerful, it was eventually launched as a publicly traded company on the London Stock Exchange. At this time, Kaplan stepped into the background of the company and David Carruthers, a former Ladbrokes executive was placed at the helm of the internet sports betting business.
In July 2006 Carruthers was apprehended by Federal authorities while changing planes in Texas. At that time the St Louis office of the US Department of Justice unsealed an indictment that charged Carruthers, Kaplan and several others with 22 counts of fraud and racketeering. Kaplan was not apprehended during the initial sweep, and appeared to drop off the radar entirely, until his arrest on Wednesday.
Kaplan was arrested on Wednesday at a hotel in Santo Domingo. The arrest was the result of a raid carried out jointly by the Dominican National Police, the US State Department and the FBI. Following his arrest, Kaplan was taken to Puerto Rico where he appeared before a US Federal Judge. The Judge ruled against Kaplan on Friday, ordering the gambling kingpin to remain in custody pending an extradition to St. Louis.
Kaplan and Carruthers, who is current under house arrest while awaiting trial in St. Louis, were both charged under Title 18 of the US Criminal Code. Commonly referred to as the Wire Act, this 1960s era law was passed by Congress to prevent mobsters in New York from placing or accepting sports bets via the telephone. Although outdated, it is presently used by law enforcement as a tool to prosecute offshore gambling companies such as BetOnSports.com
In related news, the World Trade Organization upheld a ruling on Friday which charged the United States with unfair trade practices with the way in which it targets online gambling operators, such as BetOnSports.com. The ruling opens a door for sanctions to be legally levied against the United States, although this is unlikely to effect the Kaplan case.
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