Casinos.co.uk: Casino News Archive
Tuesday 25th July 2006
BetonSports Fires CEO David Carruthers
The online gambling company BetonSports has today sacked its chief executive David Carruthers, following his arrest and subsequent detention in the US on fraud charges.
In a statement issued today, BetonSports set out to distance itself from its former boss. 'On July 24, the contract under which David Carruthers acted as CEO of the company was terminated ... This action was taken as a consequence of Mr Carruthers' continued detention by US authorities,” it stated.
'Clearly, while he remains in the custody of the US government he is unable to perform his duties. Further, the company has been unable to speak directly with Mr Carruthers.'
Mr Carruthers and 10 others, including the BetonSports founder Gary Kaplan, were named in a 22-count indictment this week by federal prosecutors. The US government accused BetonSports of fraudulently taking bets from US residents by phone and the internet, and failing to pay excise taxes.
The London-listed company has been forced to shut down 85% of its business since the indictment, which has seen Internet gambling stocks plummet.
In a separate statement, BetonSports claimed none of its other directors - appointed after the company's flotation in 1994 – were named in the charges.
'The board wish to make absolutely clear that none of the founders of the original business has any continuing role within the company,' it said.
BetonSports further claimed that it had operated in accordance with the ‘standards expected of a UK plc’ since listing, adding: 'Some media reports have focused on alleged improper activity occurring at the group's Costa Rican business premises during VIP parties and other events. All these allegations relate to the time prior to the acquisition of the business by the company and its July 2004 float.'
Source:OnlineCasinoNews
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