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11 including CEO of offshore gambling Web site charged in Texas



Printer Friendly VersionPost a CommentTell a Friend about this Article18 July 2006
As reported by: Augusta Chronicle
Federal officials on Monday charged 11 people, including the CEO of a big gambling Web site, alleging they committed conspiracy, racketeering and fraud in taking sports bets from U.S. residents.

The Justice Department is seeking the forfeiture of $4.5 billion, cars and computers from the defendants, including BetOnSports PLC and three other companies.

BetOnSports Chief Executive David Carruthers and four other defendants were arrested over the weekend. Carruthers was being prevented from boarding a flight Sunday from Texas to Costa Rica, where the company has operations.

The 22-count indictment was unsealed Monday in St. Louis, where a federal judge also ordered BetOnSports to stop accepting bets placed from within the United States.

Several of the defendants live outside the United States, which will make them hard to catch, said U.S. Attorney Catherine Hanaway in St. Louis.

"This is a tough crime to prosecute," she said.

Among those who live abroad is Gary Stephen Kaplan, the founder of BetOnSports, which is incorporated in the United Kingdom and listed on the London Stock Exchange.

Trading of the company's shares was suspended in London on Tuesday. Shares of BetOnSports fell as much as 24 percent Monday following news of Carruthers' arrest, but they recovered to close 17 percent lower at 122.50 pence ($2.24).

In the fiscal year ending Feb. 5, BetOnSports reported a 65 percent gain in operating profit on continuing operations to $20.1 million. The company said it handled $1.77 billion worth of bets for the year, up 25 percent.
Article By: Augusta Chronicle

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