Court documents from the US District Court of Missouri relating to the case brought by the US government against Betonsports founder Gary Kaplan have surfaced revealing that Kaplan is arguing that he did not violate tax laws because “no wagering excise tax was owed by him because the wagers either were not accepted in the Unites States or were not placed by a person who was in the United States”.

Kaplan is facing several charges, including those regarding tax evasion, after he was arrested in the Dominican Republic just over a year ago. He was indicted in June 2006, along with eleven others over charges relating to fraud, conspiracy, racketeering and tax evasion.

It is only the tax evasion charge and the issue of location which has been challenged at present.

The document says: “The government further alleges that defendant Kaplan caused and directed that wagering funds be sent outside the United States. There are no allegations that persons in the Eastern District of Missouri were directed to send funds outside the United States.”

The court document adds: “Questions of venue in criminal cases are not merely matters of former legal procedure. They raise deep issues of public policy.” The response from the prosecution adds that while the US government “argues that the defendant was subject to the wagering excise tax pursuant to defendant’s status as owner and operator of various specified gambling entities doing business in the United States”, the court found “the defendant’s arguments persuasive”.

Gary Kaplan’s legal team includes well-known lawyer Alan Dershowitz.

Posted: 2008-05-01