BetonSports CEO Sentenced To Prison For Illegal Sports Wagering
By Anna Johnson on January 14th, 2010U.S. District Judge Carol E. Jackson has sentenced U.K. citizen David Carruthers, 52 – the former Director and CEO of BetonSports, a large offshore sports wagering business – to 33 months in prison for contravening U.S. gambling laws.
The sentencing follows a lengthy investigative and prosecution effort by several U.S. law enforcement agencies – including the IRS and the FBI – which culminated in Carruthers’ prosecution and decision to plead guilty and testify against his co-defendants.
According to Assistant U.S. Attorney Steven E. Holtshouser, the prosecution and conviction of Carruthers represents a significant victory for the U.S. Government as it continues targeting offshore Internet and telephone sports wagering businesses that illegally elicit business from Americans:
“The prosecution and conviction of Carruthers is significant to the Government’s efforts at enforcement of U.S. laws against offshore Internet and telephone sports wagering businesses, because Carruthers was both a foreign national and a top executive of BetOnSports.”
“Previously, executives, owners and investors believed that they were immune from the reach of U.S. law enforcement; even their business plans were directly aimed at the U.S. market. Both the conviction of, and sentence handed down against Mr. Carruthers should send a message to any foreign business conducting illegal activities in the United States, that geography does not render it untouchable.”
BetonSports founder, Gary Kaplan, hired David Carruthers in around June 2000 to be CEO of BetonSports.com, a sports wagering business based in Costa Rica. Four years later, in July 2004, David Carruthers became a Director of the company, BetonSports, PLC.
