The St. Louis Post-Despatch reports that BetOnSports will ignore
a federal criminal prosecution and civil case aimed at shutting its
billion-dollar U.S. operation, according to a federal prosecutor in
a court statement on 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 failed to attend a civil hearing in the afternoon, where
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.
Reached later by phone, Cohen said, "I can't comment on
what position, if any, the company intends to take in the litigation."
He said he was advising the company "on certain issues,"
including jurisdiction.
The case represents the largest prosecution of an Internet gambling
company ever, said U.S. Attorney Catherine Hanaway. Hanaway said it
was very rare for someone to simply ignore a federal prosecution.
"They're just doing what they have been doing," she
noted. "I don't think it's surprising that they would continue
to."
But Hanaway said her office achieved a "very significant
step forward" by getting the company to shut down its
hundreds of Web sites to U.S. consumers.
Carruthers' Texas lawyer, Tim Evans, said he expects to work out a
deal to free Carruthers on $1 million bond with a condition that he
stay in the St. Louis area and wear a GPS tracking device.
The 48-year-old British businessman's associates say he is not doing
well. One said: "He looks like a beaten man - not physically
beaten but just beaten down." Wearing leg irons, a white
T-shirt and loose beige slacks, Carruthers only spoke to confirm his
name, age and plea.
All of the other criminal defendants pleaded not guilty either in
person or through lawyers, including one other company, DME Global
Marketing & Fulfillment Inc.