BoS a No-Show again in US Federal Court

5 January 2007

Indicted sports betting company BetonSports (BoS) pulled another no-show in federal court today.

In what would have been the long-awaited arraignment hearing for the corporation, indicted in July 2006 on charges of conspiracy, racketeering and fraud, BoS's lawyer, Jeffrey Demerath, was instructed by his client not to appear, according prosecuting attorney, Assistant U.S. Attorney Michael Fagan.

Fagan said that Demerath informed him, however, that BoS intends to fully comply with the permanent injunction ordered in a recent civil case.

Fagan said that if he could not "talk some sense" into opposing counsel, he would file with the court a motion of order to show cause why BoS could not appear. If the company cannot satisfactorily show proper cause, Fagan said, the government would then take further actions against the company.

U.S. Magistrate Judge Mary Ann Medler urged Fagan to discuss the situation with Demerath and attempt to "work it out" before taking legal action.

Demerath would not comment on the circumstances.

Fagan also addressed two of the three other corporations listed in the original indictment, which have yet to be arraigned. Florida-based companies DME Global Marketing & Fulfillment, Inc., Direct Mail Expertise, Inc. and Mobile Promotions, Inc. provided promotional services for BoS. DME was arraigned in July, but a lawyer for that company stated at the time that no representatives of Mobile Promotions Inc. or Direct Mail Expertise Inc. were likely to appear because the two companies were no longer viable.

Fagan said he may enter a motion of order to show cause why Direct Mail Expertise, Inc. and Mobile Promotions, Inc. should not be sanctioned to appear for arraignment, regardless of their viability.

Meanwhile, the evidentiary hearing in the case against BoS and all defendants has been pushed back to March 2, 2007.

Emily Swoboda is the senior staff writer at IGamingNews. She lives in St. Louis, Mo.