Plea Deal for Kaplan

August 24th, 2009

Gary Kaplan, BetonSports founder, pleaded guilty last week to conspiracy and racketeering. For those of you not following this story for the last three years, Kaplan was arrested in March of 2007, following a crackdown by the US government on sports betting and online wagering. BetonSports was indicted in 2006 which led to the arrest of many associated with the company. Kaplan is the last to be sentenced.

Kaplan will spend 41 to 51 months in jail and turn over more than 43 million dollars in assets. The last 2.5 years will count toward his sentencing.

So what happens to the 43 million seized from Kaplan. A very interesting question since BetonSports owes players 16 million dollars. Vantis, which is an UK accounting group hired to help settle the debt of Betonsports reported in July that only 2 million had be allocated to return to players so the most logical answer would be to go after the 43 million seized. On the other side the US government will not let that money go easily. The US government sees the money as criminal proceeds to most likely the money will stay in the US.

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