3 more plead guilty in online gambling case

The brother, sister and former personal assistant of Gary Kaplan, the founder of the online gaming company BetOnSports, pleaded guilty Monday and agreed to forfeit millions in gambling profits.

The guilty pleas of Neil Scott Kaplan, 43, Lori Beth Kaplan-Multz, 48, and Penelope Ann Tucker, 64, leave only Gary Kaplan facing trial. Two other defendants have not been arrested. 

Each pleaded guilty to a felony racketeering conspiracy charge and agreed to turn over money held in Swiss Bank accounts that prosecutors say is linked to the proceeds of illegal online gambling. Kaplan and Kaplan-Multz also pleaded guilty to an additional conspiracy charge.

A federal grand jury handed down an indictment in 2006, accusing Kaplan, BetOnSports executives, current or former employees and vendors of helping to run an illegal online gambling operation that was once one of the world's largest – bringing in more than $1 billion in bets per year. Gary Kaplan has pleaded guilty and has been vigorously fighting the charges.

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Three BetOnSports workers plead guilty

ST. LOUIS — Two siblings and a former personal assistant of Gary Kaplan's, founder of the defunct online gambling giant BetOnSports, pleaded guilty on Monday to federal charges and agreed to forfeit millions in illicit profits.

The move leaves only Kaplan facing trial in the case that was prosecuted here.

His brother, Neil Scott Kaplan, 43, and sister, Lori Beth Kaplan-Multz, 48, and former assistant, Penelope Ann Tucker, 64, each pleaded guilty to a felony racketeering conspiracy count. They agreed to turn over money held in Swiss Bank accounts.

Neil Kaplan and Kaplan-Multz also pleaded guilty to an additional conspiracy charge.

A federal grand jury indicted them in 2006, accusing Gary Kaplan, BetOnSports executives, current or former employees and vendors of helping run an illegal gambling operation once considered among the world's largest — handling more than $1 billion in bets a year.

Two defendants have never been located. But now all the others except Gary Kaplan — including former CEO David Carruthers and the company itself — have pleaded guilty.

Carruthers and the company agreed to cooperate in the prosecution of Gary Kaplan, who has pleaded not guilty and is vigorously fighting the case.

Kaplan lawyer Art Margulis said his client was "pleased that his siblings were able to resolve their issues with the government."

Neil Kaplan and Kaplan-Multz will not spend any time behind bars beyond the one day they were held after their arrest. Neil Kaplan must serve two months in a halfway house and eight months under house arrest. Kaplan-Multz will spend two to four months in the halfway house and six to eight months under house arrest.

The two agreed to forfeit their interest in a total of $7 million or more held in offshore accounts.

Neil Kaplan worked for the company from 2000-03; Kaplan-Multz from 2000-05. Both told U.S. District Judge Carol Jackson that they placed ads for BetOnSports in Missouri and elsewhere around the country.

Neil Kaplan said he initially believed that his brother's company was legal because he saw ads for it in New York City. He said he later realized that the company was "committing a crime," but kept working there.

Tucker will get a year of probation and forfeit almost $15,000 in her Swiss account. She told Jackson that from 1997-06, she helped Gary Kaplan in banking and payment operations.

Tucker faced 6 to 12 months in prison under federal sentencing guidelines. Kaplan and Kaplan-Multz faced 21 to 27 months.

Assistant U.S. Attorney Steve Holtshouser said the sentences reflect the minimal roles that Neil Kaplan and Kaplan-Multz played, their lack of decision-making power there and their willingness to surrender their BetOnSports money.

Earlier this month, Jackson unsealed documents that suggest Gary Kaplan made roughly $47 million when BetOnSports went public in 2004, and $49 million more a year later from the sale of stock.

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