NEWS ALERT - David Carruthers, detained by US authorities

[jetset]

Associated Press.

FORT WORTH, Texas -- The chief executive of a major online sports-betting operation remained in custody Friday on racketeering and conspiracy charges after his lawyer asked to postpone a bail hearing.

The hearing for David Carruthers, the CEO of BetOnSports PLC, will be held instead in federal district court in St. Louis. No date was set.

"We are very optimistic that the court in St. Louis can fashion some reasonable conditions for his release," said Carruthers' lawyer, Tim Evans, after the brief hearing before a magistrate in U.S. district court.

The executive was arrested Sunday at Dallas-Fort Worth International Airport as he waited to board a flight to Costa Rica, where the company has a major operation.

Carruthers and 10 others, including the founder of BetOnSports, were named in a 22-count indictment unsealed this week by federal prosecutors in St. Louis. The government says BetOnSports fraudulently took bets from U.S. residents by phone and the Internet, and failed to pay excise taxes.

The company this week shut down its U.S.-facing Web sites to comply with a federal judge's order, which it plans to challenge.

Friday's hearing lasted less than five minutes. Evans declined to say precisely why he preferred to move the detention hearing to St. Louis.

Carruthers did not speak. He was shackled at the ankles _ handcuffs were removed shortly before the judge arrived _ and he was dressed in an orange jail jumpsuit and matching canvas slip-on shoes instead of the jeans and T-shirt that he wore at a court appearance Monday.

The lawyer said Carruthers was in good health and "doing very well under the circumstances, similar to how you would be doing if you had an orange suit on."

After the hearing, he was expected to be returned to a federal facility in Fort Worth to await travel to St. Louis.

The case has attracted intense media interest in the United Kingdom, from where Carruthers hails. Reporters representing three major London daily newspapers traveled to Fort Worth to cover Friday's hearing.

Carruthers' arrest triggered a sell-off this week of stocks of online betting operations that are publicly traded in London.

Experts who follow the industry say the real target of the indictment appeared to be Gary Stephen Kaplan, the BetOnSports founder. He is a former New York-area bookie now living in Costa Rica and remained at large despite the indictment.

The Justice Department is seeking the forfeiture of $4.5 billion, cars and computers from the defendants.

 

[cipher]

Associated Press.

FORT WORTH, Texas -- The chief executive of a major online sports-betting operation remained in custody Friday on racketeering and conspiracy charges after his lawyer asked to postpone a bail hearing.

The hearing for David Carruthers, the CEO of BetOnSports PLC, will be held instead in federal district court in St. Louis. No date was set.

"We are very optimistic that the court in St. Louis can fashion some reasonable conditions for his release," said Carruthers' lawyer, Tim Evans, after the brief hearing before a magistrate in U.S. district court.

The executive was arrested Sunday at Dallas-Fort Worth International Airport as he waited to board a flight to Costa Rica, where the company has a major operation.

Carruthers and 10 others, including the founder of BetOnSports, were named in a 22-count indictment unsealed this week by federal prosecutors in St. Louis. The government says BetOnSports fraudulently took bets from U.S. residents by phone and the Internet, and failed to pay excise taxes.

The company this week shut down its U.S.-facing Web sites to comply with a federal judge's order, which it plans to challenge.

Friday's hearing lasted less than five minutes. Evans declined to say precisely why he preferred to move the detention hearing to St. Louis.

Carruthers did not speak. He was shackled at the ankles _ handcuffs were removed shortly before the judge arrived _ and he was dressed in an orange jail jumpsuit and matching canvas slip-on shoes instead of the jeans and T-shirt that he wore at a court appearance Monday.

The lawyer said Carruthers was in good health and "doing very well under the circumstances, similar to how you would be doing if you had an orange suit on."

After the hearing, he was expected to be returned to a federal facility in Fort Worth to await travel to St. Louis.

The case has attracted intense media interest in the United Kingdom, from where Carruthers hails. Reporters representing three major London daily newspapers traveled to Fort Worth to cover Friday's hearing.

Carruthers' arrest triggered a sell-off this week of stocks of online betting operations that are publicly traded in London.

Experts who follow the industry say the real target of the indictment appeared to be Gary Stephen Kaplan, the BetOnSports founder. He is a former New York-area bookie now living in Costa Rica and remained at large despite the indictment.

The Justice Department is seeking the forfeiture of $4.5 billion, cars and computers from the defendants.

Hi Jet:

This is common tactic for the defense to wait for a bail hearing in the venue where the case in chief is brought namely Missouri rather than Dallas/Ft. Worth. But in any event the possibilities of bail being granted in this case is not good given the fact that Carruthers has no ties to the community.

Have a good one.

 

[tennis_balls]

best article i've read yet on this

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looks like Carruthers used poor judgement in getting involved with Kaplan.

 

[bossplayer]

MGM stance

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looks like Carruthers used poor judgement in getting involved with Kaplan.

My guess is that the MGM has a capable staff of IT guys with a software license ready to go if gambling becomes legalized, very interesting reading.

 

[Buddy]

Sunday Times article

Another interesting article in the Sunday Times yesterday

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[tennis_balls]

Calvin playing it safe

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[tennis_balls]

I was surprised to hear an ad for betonsports on my favorite radio station today........the ad was promoting the upcoming US football season and gave an 800 phone number but never mentioned the website. WTF?

 

[cipher]

This is hilarious. BOS finally hired a litigator that's going to jerk the DOJ's chain instead of the other way around.

Have a good one.

 

[AussieDave]

I've been semi following this, but, on a whole I'm still rather green @ least to the BOS issues.

What baffles me is the following:

If gambling causes so much harm, what makes horses racing, lottery and Vegas for that matter any different?

A gambling addiction is like an illness, it's not like some one has control at Vegas but loses all control when gambling online.

As far as the DOJ's reference to some guy in the UK losing 17K in BP a day after stealing 1million BP to feed his online habit. I'm sure vegas and the "other" forms of legal gambling in the USA hold many, many sad stories far exceeding the one's that are being used by the DOJ.

It would be nice to see the industry regulated, it would be nice if I could gamble at Lassiters online here in OZ too. But that's an issue for my Government to deal with. For now they're more than happy for me to do my nuts at any number of B&M casino's Australia wide or for that matter any pokie (slots) venues 5 min drive North, South East or West from my home.

 

[jetset]

The AP reportage out of St Louis was a little confusing yesterday - the initial report said that Carruthers had not been arraigned with the others due to travel delays, but then later reports said that he had, in fact arrived in St. Louis, had been arraigned and pleaded not guilty....but that unlike the others named in the indictment he would not be released on bond.

So, he remains in jail - presumably now in St. Louis - until the next hearing date which was set for August 21 by U.S. Magistrate Judge Mary Ann Medler, who said that there may even be a postponement on that.

One of the marketing companies named in the indictment had a legal representative there, but apparently there was no-one from BetonSports, which gave US Attorney Catherine Hanaway a chance to score a point, saying she wasn't surprised.

"They have not had any regard for the law. And to not appear would be a further step along that same path," she said.

The lawyer for the marketing company scored too: "BetOnSports and others who did not come here, maybe they are thumbing their nose at the government," D'Agrosa told The Associated Press. "We do not think much of this case either."

 

[cipher]

The AP reportage out of St Louis was a little confusing yesterday - the initial report said that Carruthers had not been arraigned with the others due to travel delays, but then later reports said that he had, in fact arrived in St. Louis, had been arraigned and pleaded not guilty....but that unlike the others named in the indictment he would not be released on bond.

So, he remains in jail - presumably now in St. Louis - until the next hearing date which was set for August 21 by U.S. Magistrate Judge Mary Ann Medler, who said that there may even be a postponement on that.

One of the marketing companies named in the indictment had a legal representative there, but apparently there was no-one from BetonSports, which gave US Attorney Catherine Hanaway a chance to score a point, saying she wasn't surprised.

"They have not had any regard for the law. And to not appear would be a further step along that same path," she said.

The lawyer for the marketing company scored too: "BetOnSports and others who did not come here, maybe they are thumbing their nose at the government," D'Agrosa told The Associated Press. "We do not think much of this case either."

Hi Jet:

At this point I'm hearing that Carruthers has been granted bail in the amount of $1,000,000.00, in addition to surrendering his passport and the further proviso that he not leave the city of St Louis, Missouri pending a further disposition by the Court. It's my understaning that he will be released later on today and upon receipt of the $1,000,000,00 being received by the court.

Have a good one.

 

[AussieDave]

One of the marketing companies named in the indictment had a legal representative there, but apparently there was no-one from BetonSports, which gave US Attorney Catherine Hanaway a chance to score a point, saying she wasn't surprised.

Hypothetically if someone from BOS did show for the court appearance couldn't they be arrested too?

It's a bit like your wife asking "does my bum look fat in this", whatever you do it's wrong.

 

[jetset]

Hi, Cipher - yes, this story is unfolding quickly and although I have not yet seen confirmation on the wire services of your report above there was definitely speculation on this aspect late yesterday. Predictions were that Tim Evans would be able to broker a million dollar bail deal with Hanaway that would allow Carruthers to get out of jail, albeit with e-tagging and confinement to the city precincts. He could be there for some time before this case is actually heard.

You've probably already noted the clever legal footwork of the BoS lawyer in NY who has apparently advised them not to appear, but at the same time denies any authority to accept service of documents.

BTW the UK Guardian carried a really interesting biog piece on Catherine Hanaway, describing her as a 42 year old, six foot, cigar smoking conservative! She sounds like quite a character!

 

[AussieDave]

Wonder why I'm being ignored! Hmmm my dad wasn't a glazier (I'm not invisible) so that can't be the reason. Maybe I should also shoot the intellectual sh#t breeze instead of just asking a simple question

 

[lots0]

Hypothetically if someone from BOS did show for the court appearance couldn't they be arrested too?

Depends... On who they are and what they do.

I’ll give odds (10/1 - any takers?) that if G showed up the feds would bust him in a heart beat... But some secretary with no decision making authority in the company may well not get touched.

I'm not invisible

Nope, but you were asking a question that most Americans would ignore, because the answer is considered obvious.

 

[cipher]

Hypothetically if someone from BOS did show for the court appearance couldn't they be arrested too?

It's a bit like your wife asking "does my bum look fat in this", whatever you do it's wrong.

Hi Treez:

If legal counsel were to appear in Court they couldn't be arrested for appearing. But the mere act of their appearing on behalf of a defendant (corporate or individual) could demonstrate to the Court that a legal service of process had been accomplished simply by virtue of that legal counsel's appearance.

Have a good one.

 

[cipher]

Hi, Cipher - yes, this story is unfolding quickly and although I have not yet seen confirmation on the wire services of your report above there was definitely speculation on this aspect late yesterday. Predictions were that Tim Evans would be able to broker a million dollar bail deal with Hanaway that would allow Carruthers to get out of jail, albeit with e-tagging and confinement to the city precincts. He could be there for some time before this case is actually heard.

You've probably already noted the clever legal footwork of the BoS lawyer in NY who has apparently advised them not to appear, but at the same time denies any authority to accept service of documents.

BTW the UK Guardian carried a really interesting biog piece on Catherine Hanaway, describing her as a 42 year old, six foot, cigar smoking conservative! She sounds like quite a character!

Hi Jet:

Yes, there is definitely some "chain jerking" by defense counsel going on instead of the last month's "chain jerking" by the Justice Department. Moreover, I'm confident that the Justice Department Attorney's are well aware that they're being jerked around and not liking one damn bit. But there's absolutely nothing they (the Justice Department) can do about it. That's pretty much happens when you rely on the shotgun approach going in.

Have a good one.

 

[sdaddy]

I'm curious, has this been a big story in the UK? Yes, there've been some articles here in major US papers, but I've seen nothing on network TV news. Granted there are a lot of other big news events going on now, I still find that a bit surprising.

 

[peralis]

I'm curious, has this been a big story in the UK? Yes, there've been some articles here in major US papers, but I've seen nothing on network TV news. Granted there are a lot of other big news events going on now, I still find that a bit surprising.

Like you said.. the rest of the world and their authorities realise that there are more important things in this world than betting on sports.

 

[jetset]

You make a good point regarding mainstream media. Certainly Reuters and AP have followed the story diligently and The Guardian in the UK had a reporter in St. Louis who interviewed US attorney Hanaway and Tim Evans, the Texas lawyer that Carruthers has engaged.

The Independent and the Times have carried good angles away from the usual wire service copy, too.

Last I heard was that Evans was hoping to get Carruthers out on a million dollar bail this week sometime, although the family and its contacts were having some problems raising the ca sh and finding a permanent address in St. Louis to comply with the court's requirements.

 

[mucullus]

BoS preparing to close its Costa Rica Facility

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[Casinomeister]

Carruthers out! - 17/08/06

BetonSports former CEO David Carruthers was yesterday released on bail after posting the $1 million bond required. Under conditions of his bail, Carruthers will be electronically monitored and confined to his St Louis, Missouri residence, and only allowed to leave with permission from the authorities.

"Its been an ordeal but were pleased that hes out," said Scott Rosenblum, one of Carruthers lawyers, outside the courthouse. Carruthers declined to comment on the situation.

Carruthers release had been delayed from earlier in the week amid technical difficulties related to the installation of a proper phone line to work with the electronic monitoring system.

He will now await trial over a number of charges, including racketeering and fraud. His legal team have not commented on defence strategies, suffice to say that they'll be "prepared to defend the case at trial."

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