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The U.S. Department of Justice has announced that David Carruthers, the former CEO and director of BetonSports.com pleaded guilty to several charges including racketeering and running an illegal gambling business. British born David Carruthers was hired in 2000 to run the Costa Rican based BetonSports.com. While under his management the site falsely advertised its legal status and also spent its customers’ money in order to expand their share of the market. Six years later when the company went bust it was unable to honour the $16 million of customers’ money that had been deposited in their accounts.

Carruthers faced a fine of up to $250,000 and a prison sentence of up to 20 years. Gary Kaplan, the owner of the former gambling site who hired Carruthers also faces trial along with two other co-defendants. The trial is due to commence in September of 2009.


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