Already in trouble with US Courts, the London-listed online gambling company, BetonSports, is now finding itself in deeper trouble with the courts after failing to respond to charges of racketeering and violating interstate gambling laws. BetonSports directors were supposed to appear in St. Louis in the court of US District Judge, Carol Jackson, on December 28th, but they never did even after the US lawyer representing the company urged them to do so. As a result, Judge Jackson found the company in contempt of court, prompting prosecutors to ask that Jackson impose daily fines on BetonSports until company representatives did appear in court. Jeffrey Demerath, BetonSports' St. Louis counsel, even called the judge's chambers and ``told us he had been instructed by his client not to appear,'' Jackson said. ``I clearly believe Betonsports' actions are contumacious and disregard the court's order without any excuse.'' Last summer, when BetonSports was indicted, its founder Gary Kaplan, the then-Chief Executive Officer David Carruthers and nine other individual defendants were indicted as well. Prosecutors are asking for a forfeiture of $4.5 billion. On January 11th, the court entered a plea of not guilty on behalf of the company. Back in November, two corporate attorneys signed a civil consent agreement with federal prosecutors that made it possible for Judge Jackson to issue an order permanently banning BetonSports from operating and doing business in the US. Demerath was one of the attorneys that signed the agreement. Just prior to BetonSports’ scheduled arraignment on the criminal charges last month, Demarath informed the court that BetonSports had told him not to respond to the charges. Commenting on BetonSports’ decision not to respond, Assistant U.S. Attorney, Michael Fagan, said that the decision “suggests that corporate management is neither in a coma nor dead but, instead, contemptuous and defiant”. Fagan filed the court papers asking Jackson to make the contempt finding. Posted on: February 14, 2007
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