NEWS ALERT - David Carruthers, detained by US authorities

[Casinomeister]

BetonSports NEWS ALERT

The egaming industry was rocked by the news Monday morning that David Carruthers, high-profile chief executive of BetonSports had been detained by the US authorities while on route from the UK to Costa Rica.

A statement from the company released to the London Stock Exchange said it was "seeking clarification as to the basis of the detention" and a further announcement would be made when appropriate.

Shares in the egaming sector took a hit as the news hit the markets on Monday morning, with BetonSports suffering a drop at one point Monday of over 20% or more that 30p. Sportingbet also fell over 10% or over 34p while PartyGaming saw its share price fall 7.5% or 8p.

The news comes one week after the US House of Representatives passed the Internet Gambling Prohibition Act. The bill proposes a further crackdown on internet gambling. It has now been passed to the Senate.

Analysts were at a loss to explain the developments. One suggested it was strange such a move should be made before any further legislation should have been made law. Another suggested the US Department of Justice might have a "beef" with BetonSports for "lots of reasons; telephone betting, advertising, the founder."

An industry source suggested the move might be a reaction to the extradition of the so-called NatWest Three´ last week. The three UK bankers have been arraigned in the US on Enron-related fraud charges.

eGaming Review will update on the news later today (Monday).
http://www.egrmagazine.com/

[Westland Bowl]

I definitely would want to know "the basis for detainment" too!!! There are a couple of issues here:

1. If US authorities are acting on behalf of the bill the passed the House last week, they evidently didn't read it or more importantly, don't know the political process of how a bill becomes law in US. The bill gives no authority whatsoever to anyone in anything just yet. And again, the bill only deals with the use of credit cards and transfers of funds for gambling purposes.

2. If US authorities arrested David because he runs a online sports betting operation albeit on non-US soil in which US citizens bet, it is like US authorities arresting the Amsterdam seller of pot (where it's legal) after discovering a small stash on a person entering the US. The US authorities would be over-stepping their jurisdiction in this case.

In any case, I guess the US authorities arrested David....because they can and likely get away with it. There are probably some other issues that will later come out about this.

[jetset]

Unfortunately information on this is still sketchy, although that will change as the day wears on, I'm sure.

Carruthers is a fighter, and you can bet that he will have officialdom up to its ears in lawyers by now. He was apparently "detained" (an ambiguous term that could mean several things and not necessarily being in jail) at 11pm Sunday night.

Carruthers is a British subject, which would also have to be factored in to any action.

This could be just an intimidatory move if all they did was question him - he has been an articulate and high profile proponent of regulated online gambling in the USA for years and would therefore be a tempting target for the feds - remember how they tried to intimidate publications with that "you may be committing an offence" letter???

[greedygirl]

Just in from eGaming Review:

News Alert: Carruthers 'due in court this afternoon



Chief executive of BetonSports David Carruthers will be appearing in court at the Federal Court House in Fort Worth, Texas, at 2pm US Central time according to a spokesperson at the FBI.

Carruthers was detained late on Sunday afternoon at Dallas airport by the US authorities while en route from the UK to Costa Rica.

He was detained by members of the FBI and the Inland Revenue Service (IRS) at around 4pm local time with a warrant for his arrest. He is believed to have spent a night in Tarrant county jail.

According to sources, Carruthers will be charged under the federal racketeering statutes or RICO (Racketeer Influenced and Corrupt Organisations Act).

The Federal warrant has been issued out of state with a sealed indictment. The hearing will determine his rights and the possible bail conditions. Sources indicate he is unlikely to be granted bail. The hearing will also determine which Federal Correctional Institute he will be sent to.

His wife Carol Carruthers was travelling with him but was released immediately. He would have spent a night in the local county jail.

[Casinomeister]

Originally Posted by greedygirl

...According to sources, Carruthers will be charged under the federal racketeering statutes or RICO (Racketeer Influenced and Corrupt Organisations Act).

The Federal warrant has been issued out of state with a sealed indictment. The hearing will determine his rights and the possible bail conditions. Sources indicate he is unlikely to be granted bail. The hearing will also determine which Federal Correctional Institute he will be sent to.

Well THAT sucks. Since when did he have a warrant out for his arrest??

[spearmaster]

This is a bad sign. I wonder what he did to piss the government off... unless perhaps Sen. Leach went after him after being burnt badly in the Wall Street Journal (or was that NY Times) debate...

[Westland Bowl]

It is possible that the Justice Department is trying to indirectly influence legislation in Congress, especially the Senate to put higher priority on developing a Senate version of the House bill. The timing couldn't have been better. But if I were a Senator, I'd be pissed off that the Justice Department would use such tactics to get me to do something.....strong-arming me through media manipulation.

[Mousey]

If this Carruthers owns/runs a business (that is legal) in another country how can the FBI arrest him? Is this man a US citizen? 'corrupt organization'? According to whom?

Well, I'm confused as hell...

I keep getting this weird, icky, sick to my stomach feeling ... like when I read about the Burning Times, or about McCarthy and the Red Scare ....

It's all so damn surreal....

Thank you all for any news and future updates.

[Mousey]

This is really getting ugly....

CEO of offshore gambling Web site charged

04:49 PM CDT on Monday, July 17, 2006
Associated Press

FORT WORTH, Texas -- David Carruthers, whom authorities say runs an offshore gambling company that illegally takes bets from U.S. residents, was ordered held in custody Monday after a brief appearance in federal district court.

Carruthers was detained Sunday as he tried to change flights en route from the United Kingdom to Costa Rica, where his BetsonSports PLC is based.

A sealed indictment had been issued in Missouri.

Federal Magistrate Judge Charles Bleil ordered the indictment unsealed, but prosecutors declined to make a copy available until they could hold a press conference later Monday.

Federal prosecutor Mark Nichols summarized the multi-count indictment in open court, saying that Carruthers and several other people were charged with conspiracy in offering bets on professional and college sports to U.S. residents.

BetonSports took wagers on an Internet site and over a toll-free telephone line, Nichols said.

............

there's a bit more but I didn't want AP mad at me. LOL

[Mousey]

More info about the charges an the individuals charged.

http://releases.usnewswire.com/GetRelease.asp?id=69335

My apologies for an offsite link.