Kaplan Pleadings in BetOnSports

[JPFisher55]

For those interested Gary Kaplan is not rolling over and playing dead like Neteller and its founders. At MajorWager.com, you can find links to all his motions including many to dismiss the charges against him. One of them is related to GATS and the WTO. I am not going to link them because there are eight documents. The first one is about interpretation of the Wire Act and the seventh one involves GATS and the WTO. The rest are about tax issues and other motions.

[BluffTHIS!]

Jay Cohen didn't roll over either and yet they rolled over him and left him for dead.

Regarding "the seventh one involves GATS and the WTO", the question I would ask of you attorneys is what legal standing an international treaty has in domestic law when there is a conflict? For instance if the U.S. made a treaty with Canada that companies based in Canada could ship candy bars to the U.S., but at the same time Congress criminalized such activity, would a person indicted for such in a U.S. court be able to assert the treaty invalidated the domestic law?

[adanthar]

If the treaty was passed after the ban, probably (although it would not necessarily always work.)

[BluffTHIS!]

[ QUOTE ]
If the treaty was passed after the ban, probably (although it would not necessarily always work.)

[/ QUOTE ]

On the international law side, I would think that such a criminal law passing after the treaty would void the treaty, or cause it to fall into abeyance. But on the domestic side, what precedents if any are there, regardless of chronology, for an international treaty taking precendence over domestic law? And this is aside from the specifics of this case where the DoJ will just spout the Trade Rep's line that the US never made any such commitments.

[adanthar]

There are a few I can think of, but the ones in criminal court have largely been death penalty cases dealing with violations of the right to consular access and that type of thing - in those, the treaty arguments have largely been ignored. This is another story, though; it's a less serious matter and the argument is much less technical. The case is also taking place in federal court, another good sign (state courts notoriously and almost universally don't give a damn about international obligations in crim law.)

Note, however, that none of this is a defense to income tax fraud and that even if he wins this case on that point, it's not binding anywhere except very tangentially persuasive evidence in that particular district.

[JPFisher55]

Actually, income tax evasion does not seem to be part of the Kaplan case. It is evasion of excise and gambling taxes charged by fed. and some states. Kaplan seems to argue that such taxes are not due on gambling income from Costa Rica.

[JPFisher55]

The two most interesting are the first and seventh document. The first one involves interpretation of The Wire Act and the seventh one involves the WTO application. If you don't understand how the WTO ruling is a defense read the seventh pdf document. It is good.
The first document states the the Wire Act only covers sports betting, not casino gambling.
The other documents are various procedural motions and motions to dismiss the tax charges. Apparently the govt. is indicting Kaplan for failing to pay excise taxes from gambling income earned in Costa Rica.
I don't know what are Mr. Kaplan's chances of success. But they are probably higher on appeal than at the trial level.
If he wins on the first motion about casino gambling not covered by the Wire Act then online poker has its exemption.
This will take some time and the situation is different than during Jay Cohen's case.

[oldbookguy]

Actually I think Kaplan's chances are pretty good at trial.

This idea of the WTO defense actually was suggested by the Judge in the case, quoting from an old story at point spreads:

[ QUOTE ]
BETonSPORTS CEO David Carruthers appears to have a little luck on his side these days. Judge Mary Ann Medler of the United States District Court, Eastern District of Missouri, ruled that World Trade Organization’s recent panel ruling in favor of Antigua can be introduced as grounds for dismissal of the indictment's against Carruthers.

The ruling was issued SUA SPONTE, which in Latin means “of one’s own accord,” is a legal term that means to act spontaneously without prompting from another party. Attorneys for Carruthers have until May 2nd, 2007 to file their motions. The US Government has until May 9 to file and any reply will be filed no later than May 16th, 2007.

[/ QUOTE ]

I posted a story in my pre 2+2 days at Card player about this.

http://forums.cardplayer.com/forums/...ic.php?t=47800

obg

[Emperor]

The issue about the unpaid taxes is also muddied by the fact that the IRS refuses to accept them. (Sorry can't find a citation, maybe ask Jay) These offshore casinos have offered to pay taxes due, but the IRS in conjuntion with the DOJ has refused to accept. (So they can prosecute later of course)

[Merkle]

Minor hijack

Are any attorneys using this forum familar with trademark/servicemark issues? If so please PM me.