Gambling Chief Fired After Texas Arrest
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
LONDON — One of the world’s largest betting Web sites, which is facing fraud and racketeering charges in America, has fired its British chief executive as he languishes in a Texan jail.
David Carruthers was arrested as he changed planes in Dallas 10 days ago, when flying to Costa Rica from Britain. He was the chief executive of Beton-Sports, a sports betting Web site based in the Central American country.
His arrest, by FBI agents, was part of a major 22-count indictment against 11 individuals and four companies, all connected to BetonSports.The charges include racketeering conspiracy, mail fraud, and tax evasion.
Mr. Carruthers was fired by the company’s board which is attempting to draw a line under the company’s past, particularly the involvement of its founder, Gary Kaplan, a New York bookmaker. Though his day-to-day involvement ended in 2004, he remains the largest shareholder through his Boulder investment vehicle.
A source close to the company admitted that it “didn’t look good” that it had severed all ties to Mr. Carruthers while he awaits a bail hearing. The company is not going to pay his legal fees. “It wasn’t an easy thing to do,” the source said. “But David was the only link the company had left to Gary Kaplan. We have to move forward.”
