The Sentencing of David Carruthers

09 January 2010

David Carruthers’ ordeal is finally over. Or soon will be in 33 months. That is the length of the sentence handed down to him by Judge Carol E. Jackson of the Missouri Eastern district Court following a plea agreement between David Carruthes and federal prosecutors yesterday. He has been confined to a hotel in St. Louis, MO. Since his arrest in 2006, he has been under electronic surveillance while waiting for trial.

In a prepared statement he read in court, he apologized for his mistakes and for the trouble that he and BetOnSports had caused.

This is the end of a battle which started when David Carruthers was arrested on July 16, 2006. On July 18, 2006, BetOnSports suspended trading of its shares on the London Stock Exchange. David Carruthers was released as the CEO one week later. In May 2007, the company pleaded guilty to a racketeering related charge.

In April, 2009, Carruthers pleaded guilty to racketeering charges and agreed to help in the federal investigation and prosecution of BetOnSports founder Gary Kaplan. In October of that same year, he withdrew his plea and pleaded guilty again to the same charge under a new plea agreement with federal prosecutors after Gary Kaplan had pled guilty in the same court.

David Carruthers attorney had asked the court to take into account his 3 years of house confinement and his time in jail. Those pleas obviously fell on deaf ears.

Judge Jackson told Carruthers in court: “I believe your apology and remorse, but I know at some point you learned that this endeavor was illegal. I don’t think you thought it was a grey area. I think you knew there would be ramifications for your conduct.”

David Carruthers arrest and court proceedings have drawn a lot of attention from everyone in the online gaming debate. Barney Frank, Democratic congressman, stated that Carruthers arrest at the Texas airport was: “one of the most Stalinist things I’ve ever seen my government do”.

Gary Kaplan was sentenced to 51 months in prison and forfeited $43 million to the U.S. government on November 2, 2009.

BetonSports was fined $28.2 million on Dec. 1, 2009. A company attorney told the judge that the company would be unable to pay the fine because under United Kingdom law, they have to repay creditors first. In a statement issued in March 2009, a European Union investigation held that the U.S. laws making online betting to be illegal, “constitute an obstacle to trade” which is inconsistent with World Trade Organization rules. “The provisional conclusions of the report imply that WTO proceedings against U.S. measures would be justified,” the 20 member European Commission stated.

Related News

  • 23 June 2009

    Betonsport's Founder to face Trial

    It’s been awhile, but you should remember this situation very well, especially if you live in America. Gary Kaplan, the founder of the online sportsbook Betonsports,  and 10 other defendants were indicted 3 years ago in St. Louis for accepting sports wagers over the Internet and via phone, which was in direct violation of the age-old USA wire act which prohibits such activities.

    Read full article
  • 17 July 2006

    CARRUTHERS, 10 OTHERS PLUS 4 CORPORATIONS INDICTED ON RACKETEERING, CONSPIRACY AND FRAUD CHARGES

    Department of Justice MONDAY, JULY 17, 2006 Eleven Individuals and Four Corporations Indicted on Racketeering, Conspiracy and Fraud Charges WASHINGTON – A federal grand jury in the Eastern District of Missouri has returned a 22-count indictment charging 11 individuals and four corporations on various charges of racketeering, conspiracy and fraud, the Department of Justice announced today. The indictment was returned on June 1, 2006, and unsealed today.

    Read full article
  • 26 July 2006

    Bet-On-Sports Fires CEO But Mystery Surrounds Former Founder Gary Kaplan

    The INQUIRER By Tony Dennis: Wednesday 26 July 2006, 10:23 LEADING UK online betting site, Betonsports has fired its CEO. Mainly because he is under arrest in Fort Worth,Texas. Amongst the charges against David Carruthers are racketeering and charges of illegally taking online sports bets. The company is insistent that besides Carruthers and founder, Gary Kaplan, none of the other directors are named in the charges.

    Read full article