Gary Kaplan, founder of the online gambling site, BetOnSports.com, was sentenced on November 4 to more than four years in prison and forced to forfeit nearly $43.7 million in illegally obtained revenue. The sentence was part of a plea agreement announced in August. Prosecutors alleged that BetOnSports.com falsely advertised that its gambling operations were legal under U.S. law, and misled gamblers into believing that money transferred to BetOnSports was freely available for withdrawal. In 2006, BetOnSports ceased operations and prosecutors allege that customers lost more than $16 million. Kaplan told the Court that he initially believed that his foreign activities were legal, but from 2000 realized that this was not the case. Despite receiving a legal opinion that BetOnSports.com operations, licensed in the Caribbean, violated U.S. law, his firm continued to solicit business from U.S. gamblers.
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