3 plead guilty in online gambling case
By JIM SALTER,
AP
Posted: 2008-08-07 17:37:37
ST. LOUIS (AP) - Three men who helped promote the online
gambling firm BetOnSports have pleaded guilty to federal charges.
William Hernan Lenis, his son, Will Lenis, and nephew Manny
Lenis entered the pleas Wednesday in St. Louis. Attorneys for the
Miami men said they were minor players caught up in a high-profile
investigation.
The U.S. attorney's office in St. Louis in 2006 accused
BetOnSports, its executives and others of illegally accepting bets
online. Later that year, the government settled civil charges
against BetOnSports and permanently barred the company from
accepting any bets from U.S. gamblers. The company itself pleaded
guilty last year.
The case has been watched closely by the multibillion-dollar
online gambling industry.
Officials with the U.S. attorney's office in St. Louis declined
to comment on Wednesday's pleas, citing pending cases against
BetOnSports founder Stephen Kaplan and former chief executive David
Carruthers.
William Lenis, 55, pleaded guilty to interstate transportation
of gambling paraphernalia. Authorities said his company, Mobile
Promotions, sent motor homes to sporting events around the country
to promote BetOnSports. Will Lenis, 28, and Manny Lenis, 29, worked
with him in promoting BetOnSports, the government alleged.
William Lenis also admitted that his company, Direct Mail
Expertise, mailed ads for BetOnSports from 2000 through 2006.
Will Lenis pleaded guilty to transmission of wagering
information. Manny Lenis pleaded guilty to a misdemeanor of failing
to pay a wagering tax.
Other charges against the men were dropped and the government
agreed to drop charges against William Lenis' daughter, Monica
Lenis.
William Lenis' attorney, Alan Ross, said the plea agreement
avoided a long and costly trial.
"These are the marketing people that do direct mail, the
advertising," Ross said. "They have nothing to do with the
operation of the Web site, gaming - nothing. The government has
launched this campaign against Internet gambling. Unfortunately,
they sometimes leave in the wake the people who were not
necessarily involved."
Richard Sindel, the attorney for Manny Lenis, said his client
was a bit player in the case. He said he was pleased with the deal,
which could result in probation and no jail time.
Sentencing for all three men is set for Oct. 24.
The charges in the BetOnSports case were filed using a 1960s-era
law known as the Wire Act, which prohibits placing bets on sports
events over the phone.
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08/07/08 17:25 EDT