BetonSports boss bailed

17-08-2006

The former chief executive of beleaguered online gambling company BetonSports has been bailed from his jail in Texas.

David Carruthers was arrested by federal officers on July 17th when he passed through a US airport en route from the UK to Costa Rica, where BetonSports is based.

After spending the last month behind bars he has now been bailed, but must wear an electronic tag and adhere to strict restrictions imposed upon his freedom of movement.

The 48-year-old will not be permitted to leave a residence in St Louis, Texas, and so will effectively remain under house arrest until his case comes to trial.

He faces a number of charges involving the operation of a racketeering operation, including wire fraud, money laundering and repeated mail fraud.

Mr Carruthers' fate is inextricably tied to BetonSports, whose founder Gary Kaplan is also among the others held by the US department of justice.

But the BetonSports board has sought to distance itself from its ex-boss, having announced on July 25th that he had been dismissed because they considered him "unable to perform his duties".

Since then the board has completely withdrawn from operations in the US, despite the fact that the US has always been the company's biggest market. As a result around 800 employees based in Antigua and Costa Rica face unemployment.

BetonSports' shares on the London Stock Exchange were frozen the day after Mr Carruthers' arrest – but not before they had lost nearly one-fifth of their value.


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