Blotter: Betonsports CEO pleads guilty to racketeering
Thursday, GamingIntelligence.com reported that former Betonsports Plc. CEO David Carruthers pleaded guilty to racketeering conspiracy charges in a U.S. District Court in Missouri. According to state prosecutors, the conspiracy led to losses of between $7 million and $20 million for more than 250 victims.
A U.K. citizen, Carruthers was appointed CEO of Betonsports in June 2000. He was arrested in 2006 after the U.S. Attorney’s office for the Eastern District of Missouri brought charges against the company for racketeering, mail fraud, violation of the Wire Act, operation of illegal gambling and money laundering. Since the charges were filed, the company has admitted to involvement in the conspiracy as part of an agreement with the U.S. District Attorney’s office.
Representatives from the U.S. District Attorney’s office said the company misrepresented its operations as legal during its advertising campaigns when it did not possess a license to operate in the U.S. Representatives also charge that the company misconstrued material facts, saying that money deposited in a Betonsports account was secure and could be withdrawn at any time.
“In actual fact, the company was using the funds to support and expand its operations, including the purchase of Easybets. When BetonSports ceased operations in July 2006, it could not repay $16 million held on account to its customers,” the U.S. Attorney’s office said.
Carruthers faces a maximum prison sentence of 20 years and fines of up to $250,000. Sentencing is scheduled to begin on Oct. 2, 2009.
phill.provance@gamblingplanet.org
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