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Emily D. Swoboda

More on the BoS Bust: 11 Indicted in Long Running Investigation

17 July 2006

BetonSports CEO David Carruthers, who was detained by FBI agents Sunday night in Dallas, was ordered held in custody today after a brief appearance in federal district court.

His arrest came out of a sealed indictment that had been issued by a federal grand jury in the Eastern District of Missouri.

Federal prosecutor Mark Nichols said in Carruthers' hearing this afternoon that the 22-count indictment charges Carruthers and 10 other people with conspiracy, racketeering and fraud in offering bets on professional and college sports to U.S. residents.

BetonSports took wagers on an Internet site and over a toll-free telephone line, Nichols said.

Prosecutors asked that Carruthers be held until he could be sent to Missouri to face charges, which could be as early as Thursday.

The 10 other individuals listed in the indictment include BetonSports founder Gary Stephen Kaplan, charged with 20 felony violations of federal laws including the Wire Act, Racketeer Influenced and Corrupt Organizations (RICO), Conspiracy, interstate transportation of gambling paraphernalia, interference with the administration of Internal Revenue laws and tax evasion; Kaplan's siblings, Neal Scott Kaplan and Lori Kaplan Multz; Norman Steinberg; Peter Wilson, media director for; and Tim Brown, Steinberg's son-in-law.

The three other charged companies, all based in Florida, were Direct Mail Expertise, Inc., DME Global Marketing and Fulfillment Inc. and Mobile Promotions Inc. Also charged are William Hernan Lenis; Monica Lenis and Manny Gustavo Lenis, owners and operators of the Florida companies; and William Hernan Lenis's son, William Luis Lenis.

More on the BoS Bust: 11 Indicted in Long Running Investigation is republished from
Emily D. Swoboda
Emily D. Swoboda