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Former Director and CEO of BetOnSports Sentenced

U.S. Attorney’s Office January 08, 2010
  • Eastern District of Missouri

ST. LOUIS—David Carruthers, the former Director and CEO of BetOnSports, a large illegal offshore sports wagering business, was sentenced to 33 months in prison, Acting U.S. Attorney Michael W. Reap for the Eastern District of Missouri announced today.

This sentencing concludes a lengthy investigative and prosecution effort by several law enforcement agencies, including the IRS and the FBI. Mr. Carruthers was the first major defendant in the case to plead guilty and he had agreed to testify against his co-defendants if necessary.

Carruthers, a citizen of the United Kingdom, was hired by BetOnSports Founder Gary Kaplan in approximately June 2000 as CEO of BetOnSports.com, an existing sportsbook organization based in Costa Rica. In July, 2004, David Carruthers began serving as a Director of BetOnSports, PLC.

“The prosecution and conviction of Carruthers is significant to the Government’s efforts at enforcement of U.S. laws against offshore Internet and telephone sports wagering businesses, because Carruthers was both a foreign national and a top executive of BetOnSports,” said Assistant U.S. Attorney Steven E. Holtshouser. “Previously, executives, owners, and investors believed that they were immune from the reach of U.S. law enforcement; even their business plans were directly aimed at the U.S. market. Both the conviction of and sentence handed down against Mr. Carruthers should send a message to any foreign business conducting illegal activities in the United States, that geography does not render it untouchable.”

“Illegal Internet gaming operations continue to be areas of concern for IRS” said Toni Weirauch, Special Agent in Charge of IRS Criminal Investigation. “With our law enforcement partners, IRS will continue to play an enforcement role in the illegal gaming industry and other illegal offshore activity.”

“The successful investigation and prosecution of this case not only put this group of criminals in prison but can indirectly help solve other computer-related crimes,” said Roland J. Corvington, FBI Special Agent in Charge of the St. Louis Division. “Some of the millions of dollars previously forfeited from this case have already been granted to RCCEEG, a regional computer crimes task force, which provides local law enforcement free technical and legal assistance to investigate such cases as child predators online.”

Carruthers, 52, appeared today for sentencing before U.S. District Judge Carol E. Jackson.

Reap commended the work on the case by the FBI, IRS Criminal Investigation, and the Chesterfield Police Department. Assistant U.S. Attorneys Steven E. Holtshouser, Steven Muchnick, and Special Assistant U.S. Attorney Charles Birmingham handled the case for the U.S. Attorney’s Office.

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