Prosecutors expand case after finding no end to betting in cyberspace

Friday, March 27, 1998 | 10:10 a.m.

Two of the companies were named earlier this month when prosecutors unveiled what they described as the first federal prosecution of Internet gambling, warning companies and customers alike.

Afterwards, FBI agents posing as customers found that two of the companies continued to operate, resulting in new charges Thursday.

"We will continue to monitor and vigorously prosecute offshore sports betting operations that engage in this blatantly illegal activity," U.S. Attorney Mary Jo White said in a statement Thursday.

Meanwhile, three of the 14 people charged in an indictment unsealed on March 4 remain fugitives, prosecutors said.

Those charged Thursday include owners or employees of three sports betting operations that were not charged earlier in the month. Those were identified as the Global Sports Network in the Dominican Republic, Grand Holiday Casino in Curacao and World Wide Tele-sports in Antigua.

Prosecutors alleged that one of those arrested, Laurence R. Stofan, operated his business, Global Sports Network, out of Cliffside Park, N.J.

Stofan said in a telephone call from Cliffside Park that he was on his way to see a lawyer after hearing about the charges.

He said he was a company representative in the United States but that he never took any bets because he knew it was illegal to do so here.

"We don't do nothing illegal. We have an offshore operation, where it's legal," he said. "We're small time."

Stofan said that if he broke any U.S. laws, he was not aware of them.

He said his company does not accept credit cards, only cash, a policy he agrees with because he believes people might bet more than they can afford if they are acting impulsively with a credit card in hand.

If convicted of the charges, the defendants face up to five years in prison and fines of up to $250,000.

With Internet gambling, customers forward money to a company in much the same way as customers order merchandise from mail-order companies. Some companies allow customers to place bets on games through their Web sites, while others require a wager be made by telephone.

Either way, prosecutors allege the practice is illegal.