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Emily D. Swoboda
 

BoS Directors Could Face Contempt Charges

11 January 2007

Assistant U.S. Attorney Michael Fagan on Tuesday filed a motion for order to show cause after indicted sports betting company BetonSports failed to appear in federal court on Friday.

The order requires "officers, directors and/or counsel for the corporation to show cause why they should not be held in contempt or otherwise sanctioned for failure to appear for arraignment."

The company, which in November settled the related civil case against it, has thus far refused to answer the criminal charges of conspiracy, racketeering and fraud brought in July 2006. Fagan said BoS's attorney, Jeffrey Demerath, informed him on Thursday that he had been instructed by his client not to appear at the arraignment hearing on Friday, but that his client intended to comply with the permanent injunction ordered by the court.

The motion of order to show cause also applies to two of the other three corporations listed in the original indictment, which have failed to appear as well. Florida-based companies DME Global Marketing & Fulfillment, Inc., Direct Mail Expertise, Inc. and Mobile Promotions, Inc. provided promotional services for BoS. DME was arraigned in July, but a lawyer for the company stated at the time that Mobile Promotions Inc. and Direct Mail Expertise Inc. were no longer viable.

Fagan stated in Tuesday's court documents that the two companies' inactive status does not shield them from federal criminal liability or disregard for the court's authority.

If proper cause is not shown, the corporations and/or representatives could be held in contempt, fined or arrested. Furthermore, the court has the right to enter a plea of not guilty on behalf of the corporation.

Click here to view a copy of the motion.

BoS Directors Could Face Contempt Charges is republished from iGamingNews.com.
Emily D. Swoboda
Emily D. Swoboda