Former CEO of sentenced to prison term

The U.K. man is sentenced to 33 months in prison on a racketeering conspiracy charge

The former director and CEO of, a large offshore sports-wagering business, has been sentenced to 33 months in prison for his role in running the illegal gambling operation.

In April, David Carruthers pleaded guilty in U.S. District Court for the Eastern District of Missouri to one count of racketeering conspiracy. He was the first major defendant in the U.S. Department of Justice's prosecution of BetOnSports officials to plead guilty, and he agreed to testify against the other defendants, the DOJ said in a press release.

In November, BetOnSports founder Gary Stephen Kaplan was sentenced to 51 months in prison on multiple charges. Kaplan also agreed to forfeit US$43.7 million as part of his plea agreement, made Aug. 14.

Kaplan hired U.K. citizen Carruthers as CEO of in about June 2000.

The DOJ has targeted BetOnSports, which was based in Costa Rica, for running an illegal Internet-based gambling operation. Online gambling is illegal in the U.S.

BetOnSports advertised "heavily" to solicit U.S. residents to place sports wagers by telephone and over the Internet, the DOJ has said

BetOnSports attracted a large number of U.S. customers. By 2004, the company's headquarters in Costa Rica employed about 1,700 people. In 2003, BetOnSports had close to 1 million registered customers and accepted more than 10 million bets totalling more than $1 billion, the DOJ said.

“The prosecution and conviction of Carruthers is significant to the Government’s efforts at enforcement of U.S. laws against offshore Internet and telephone sports wagering businesses, because Carruthers was both a foreign national and a top executive of BetOnSports,” Assistant U.S. Attorney Steven Holtshouser of the Eastern District of Missouri said in a statement.

“Previously, executives, owners and investors believed that they were immune from the reach of U.S. law enforcement; even their business plans were directly aimed at the U.S. market.

"Both the conviction of, and sentence handed down against Mr. Carruthers should send a message to any foreign business conducting illegal activities in the United States, that geography does not render it untouchable.”

Join the CSO newsletter!

Error: Please check your email address.

Tags gamblinglegalBetOnSportsCEOsprison

More about Department of JusticeDOJKaplan

Show Comments

Featured Whitepapers

Editor's Recommendations

Solution Centres

Stories by Grant Gross

Latest Videos

  • 150x50

    CSO Webinar: Will your data protection strategy be enough when disaster strikes?

    Speakers: - Paul O’Connor, Engagement leader - Performance Audit Group, Victorian Auditor-General’s Office (VAGO) - Nigel Phair, Managing Director, Centre for Internet Safety - Joshua Stenhouse, Technical Evangelist, Zerto - Anthony Caruana, CSO MC & Moderator

    Play Video

  • 150x50

    CSO Webinar: The Human Factor - Your people are your biggest security weakness

    ​Speakers: David Lacey, Researcher and former CISO Royal Mail David Turner - Global Risk Management Expert Mark Guntrip - Group Manager, Email Protection, Proofpoint

    Play Video

  • 150x50

    CSO Webinar: Current ransomware defences are failing – but machine learning can drive a more proactive solution

    Speakers • Ty Miller, Director, Threat Intelligence • Mark Gregory, Leader, Network Engineering Research Group, RMIT • Jeff Lanza, Retired FBI Agent (USA) • Andy Solterbeck, VP Asia Pacific, Cylance • David Braue, CSO MC/Moderator What to expect: ​Hear from industry experts on the local and global ransomware threat landscape. Explore a new approach to dealing with ransomware using machine-learning techniques and by thinking about the problem in a fundamentally different way. Apply techniques for gathering insight into ransomware behaviour and find out what elements must go into a truly effective ransomware defence. Get a first-hand look at how ransomware actually works in practice, and how machine-learning techniques can pick up on its activities long before your employees do.

    Play Video

  • 150x50

    CSO Webinar: Get real about metadata to avoid a false sense of security

    Speakers: • Anthony Caruana – CSO MC and moderator • Ian Farquhar, Worldwide Virtual Security Team Lead, Gigamon • John Lindsay, Former CTO, iiNet • Skeeve Stevens, Futurist, Future Sumo • David Vaile - Vice chair of APF, Co-Convenor of the Cyberspace Law And Policy Community, UNSW Law Faculty This webinar covers: - A 101 on metadata - what it is and how to use it - Insight into a typical attack, what happens and what we would find when looking into the metadata - How to collect metadata, use this to detect attacks and get greater insight into how you can use this to protect your organisation - Learn how much raw data and metadata to retain and how long for - Get a reality check on how you're using your metadata and if this is enough to secure your organisation

    Play Video

  • 150x50

    CSO Webinar: How banking trojans work and how you can stop them

    CSO Webinar: How banking trojans work and how you can stop them Featuring: • John Baird, Director of Global Technology Production, Deutsche Bank • Samantha Macleod, GM Cyber Security, ME Bank • Sherrod DeGrippo, Director of Emerging Threats, Proofpoint (USA)

    Play Video

More videos

Blog Posts

Market Place