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With BetonSports former CEO, David Carruthers, pleading guilty Wednesday in what the U.S. Government is calling a "racketeering conspiracy", he is now looking at a maximum prison sentence of just under 3 years. That's a far cry from the up to 20 years he was looking at before entering into the plea.
The U.S. Justice Department issued a release following news of Carruthers plea.
"Illegal sports gambling across state and international borders by telephone or internet is a crime," said United States Attorney Catherine L. Hanaway. "Misuse of the Internet to violate the law can ultimately only serve to harm legitimate businesses.
Carruthers, a citizen of the United Kingdom, was hired by Gary Kaplan in approximately June 2000, as CEO of BetonSports.com, an existing sportsbook organization based in Costa Rica. Carruthers agreed to conduct the enterprise through a pattern of racketeering acts, including repeated mail fraud, Wire Wager Act violations, operation of an illegal gambling business and money laundering. He also developed BetonSports to the extent that it could be publicly offered for sale on the AIM, a market operated by the London Stock Exchange. In July, 2004, David Carruthers began serving as a Director of BetonSports, PLC.
The news comes at a time when the European Union has applied additional pressure on the U.S. Government to abide by a World Trade Organization decision against the U.S. stance on Internet gambling, calling it "protectionism".
"Gambling is not a victimless crime, especially when the internet is used with its global reach," said Toni Weirauch, Special Agent in Charge of IRS-Criminal Investigation. "IRS has focused its attention on offshore activities through the enforcement of tax, money laundering and other related financial criminal statutes within its jurisdiction.
David Carruthers pled guilty before United States District Judge Carol E. Jackson. He now faces a maximum penalty of 20 years in prison and/or fines up to $250,000. Sentencing has been set for October 2, 2009.
Carruthers, during his 6 year tenure at BetonSports, routinely spoke on U.S. talk shows claiming that his business was perfectly legal.
Gary Stephen Kaplan is charged with numerous felony violations of federal laws including: the Wire Act, Racketeer Influenced and Corrupt Organizations (RICO) Conspiracy, mail fraud and interstate transportation of gambling paraphernalia. He and four co-defendants are facing trial in September 2009.
Christopher Costigan, Gambling911.com Publisher
