Former Online Gambling
Exec Pleads Guilty to Charges
 April
8 - Last week in a federal court in St Louis, Missouri,
David Carruthers,
the
former CEO of large online gambling firm BetOnSports Plc,
pleaded guilty to charges of racketeering and fraud as part of a
plea deal that could see the 51-year-old spend
up to 33 months in a U.S. prison.
Scottish-born Carruthers was the CEO of BetOnSports from July
2000 until July 24, 2006. On July 16, 2006 he was
arrested in the United States on charges of federal
racketeering, conspiracy, fraud and gambling,
that carry a maximum sentence of 20 years, hence the plea deal.
In court Carruthers
admitted that BetOnSports cost its customers $16 million when it
closed,
following the U.S. online gambling crackdown. He also admitted
that the online gambling firm
lied to its customers
that it was a 'legal and licensed' entity, and that their money
was safe and sound.
Carruthers told the court that when he first joined BetOnSports
he did not believe the business was illegal,
but soon realised that it was. And that the firm violated the
laws of Missouri, Illinois and four other U.S. states, and
committed wire fraud in its transactions and mail fraud in its
advertising.
Most damaging to Carruthers was his statement that
BetOnSports 'furtively and covertly' made use of third parties
to disguise the money being collected and paid to online
gamblers, which was a big admission of that the firm knowingly
and
willingly took part in racketeering and money laundering.
After pleading guilty to the charges,
the former online gambling executive was released from jail
after posting bail for $1 million and agreeing to undergo
electronic monitoring.
He will remain free pending the trial
of the other BetOnSports executives involved in the case, and
his
eventual sentencing.
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