BETONSPORTS SACKS ARRESTED CEO

25 July 2006

Guardian Unlimited
Tuesday July 25, 2006
Mark Tran

The online gambling company BetonSports today sacked its chief executive after his arrest in the US on fraud charges.

David Carruthers was arrested last week at Dallas-Fort Worth international airport, Texas, while on his way from the UK to Costa Rica, where BetonSports is based.

BetonSports today issued a statement distancing itself from its former boss: “On July 24, the contract under which David Carruthers acted as CEO of the company was terminated … This action was taken as a consequence of Mr Carruthers’s continued detention by US authorities.

“Clearly, while he remains in the custody of the US government he is unable to perform his duties. Further, the company has been unable to speak directly with Mr Carruthers.”

Mr Carruthers and 10 others, including the founder of BetonSports, Gary Kaplan, were named in a 22-count indictment this week by federal prosecutors. The US government accused BetonSports of fraudulently taking bets from US residents by phone and the internet, and failing to pay excise taxes.

The London-listed company has been forced to shut down 85% of its business since the indictment.

The arrest of Mr Carruthers and the move against BetonSports sent internet gambling stocks plummeting.

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