by Ryan D. Jaeger
A Federal Court in Missouri has found the former Chief Executive
Officer of BetonSports, David Carruthers guilty of racketeering and has
sentenced him to 33 months in prison.
BetonSports was one of the world's largest and most successful sportsbetting
groups, having being founded in 1995.
In 2004, the group floated on the London AIM and boasted over one million
customers.
However, the months leading up to the Unlawful Internet Gambling Enforcement
Act (UIGEA) led to the arrest of several top executives in the business,
including Carruthers and BetonSports founder Gary Kaplan.
After the arrests, trading on the group was suspended.
Carruthers served about a month in prison before being released to house
arrest, where he has been for over three and a half years.
He agreed to cooperate with the US Department of Justice on condition that he
would receive leniency in his sentencing, and he was convinced to plead guilty
to racketeering charges.
The 52 year old was sentenced this week to 33 months in prison by Judge Carol
Jackson.
According to a statement by the DOJ this concluded "a lengthy investigative
and prosecution effort by several law enforcement agencies."
Late last year, founder, Gary Kaplan was sentenced to four years in prison
and was ordered to forfeit £26 million in illegal earnings.
