This article documents a current event. Information may change rapidly as the event progresses.

David Carruthers

Born:	September, 1957 Edinburgh, Scotland
Occupation:	Chief Executive Officer
Website:	BETonSPORTS Plc

David Carruthers (born September, 1957 in Edinburgh, Scotland) was the CEO and a board member of BETonSPORTS Plc, an internet gambling company from July 2000 until July 24th, 2006, and is an advocate of online gambling regulation. Wikipedia does not have an article with this exact name. ... Edinburgh viewed from Arthurs Seat. ... A chief executive officer (CEO), or chief executive, is the highest-ranking corporate officer or executive officer of a corporation, or agency. ... 1957 (MCMLVII) was a common year starting on Tuesday of the Gregorian calendar. ... Edinburgh (pronounced ; Dùn Èideann () in Scottish Gaelic) is Scotlands capital, and its second-largest city. ... Motto: (Latin for No one provokes me with impunity)1 Anthem: Multiple unofficial anthems Capital Edinburgh Largest city Glasgow Official language(s) English, Gaelic, Scots2 Government Constitutional monarchy  - Queen Queen Elizabeth II  - Prime Minister Tony Blair MP  - First Minister Jack McConnell MSP Unification    - by Kenneth I 843  Area    - Total 78... Chief Executive Officer (CEO) is the job of having the ultimate executive responsibility or authority within an organization or corporation. ... Slot machines in Las Vegas, Nevada. ...

Career

A native of Edinburgh in Scotland, Carruthers attended Art college before joining Ladbrokes Plc, the UK's largest retail bookmaker in 1976^[1], where he became the youngest betting shop manager at the age of 19. During a twenty-four year career with Ladbrokes, Carruthers graduated with an MBA from the University of Wolverhampton and rose to manage business development strategy for Ladbroke shops in West England. He managed around forty of the business’s then 1,900 high street betting shops, managing the Midlands and south Wales territories. Ladbrokes, part of Hilton Group plc, is the second-largest chain of betting shops in the United Kingdom, after William Hill plc. ... The University of Wolverhampton is a British university, located on four campuses across the West Midlands and Shropshire. ...

Appointment as CEO, BETonSPORTS Plc

In July 2000, while it was still a privately held company, Carruthers was appointed as CEO of BETonSPORTS, and tasked with bringing the company to a stock market listing.

This he achieved in July 2004 when BETonSPORTS Plc successfully listed on the London AIM stock market, and raised £54.6 million (at the time US$101 million).

At the time of the initial listing 48.1% of the company’s issued share capital was placed with institutional investors. The offering was underwritten by Evolution Beeson Gregory. It was the third largest IPO fundraising on AIM during 2004.

Carruthers oversaw rapid growth for the company, which more than trebled its operating profits during his tenure. He was appointed to the board of directors on June 18, 2004. BETonSPORTS had a turnover, for the year ended January 31, 2004, of US$1.6 billion. The Group generated a 276% increase in turnover over the period 1999-2004 and profits before tax rose from US$0.6m to approximately US$26m during the same period.

In the fiscal year ending Feb. 5, 2006, the company reported a 65 percent gain in operating profit on continuing operations to $20.1 million. The company said it handled $1.77 billion worth of bets for the year, up 25 percent.

As at Feb. 5, 2005 Carruthers owned 1,185,567 ordinary shares in the company (1.46% of the company based on 81.15 million shares outstanding), and had options for 3 million shares exercisable at £1.40 per share between 15/07/2007 and 15/07/2014^[2].

Online Gambling Regulation Advocacy

Carruthers is a noted and vocal advocate of online gambling regulation. He has frequently engaged in public debate with opponents of online gaming (particularly in the United States), and has argued vociferously for government oversight and taxation of the industry.

Representative of his arguments for regulation is a recent Baltimore Sun article by Carruthers^[3]: The Baltimore Sun is the major newspaper in Baltimore, Maryland, with a daily press run of about 430,000 copies, and a Sunday run of 540,000 copies. ...

"Here is the secret that these politicians don't want the public to know about our industry: We want to be regulated. We want to be taxed. We want to be licensed. Instead of dealing with us constructively to address issues of mutual concern, these legislators prefer to pretend that they can control the Internet.

Instead of protecting the public, they would rather waste time on public posturing to their partisan base, and they would rather waste tax dollars on empty legislative exercises instead of taking ethical actions that would increase revenues to cities, states and the federal government from the taxes we would pay."

In 2004, when leading Internet portals Google and Yahoo! announced they would stop carrying adverts for online casinos, blaming a "lack of clarity" in US regulations, Carruthers told the New York Times: "I urge these search engines and other service providers to stand up for themselves and challenge these pressure tactics by federal prosecutors."^[4] The New York Times is an internationally known daily newspaper published in New York City and distributed in the United States and many other nations worldwide. ...

Carruthers explained to the Wall Street Journal in an August 2, 2004 article: "What happened with alcohol [prohibition] was a disaster," he said. "Nobody wants this business, which is flourishing offshore, being pushed back onto the streets and the back alleys of the U.S." He also argues that "there's a huge missed opportunity here" for the US government to collect revenue.^[5] The Wall Street Journal is an influential international daily newspaper published in New York City, New York with an average daily circulation of 1,800,607 (2002). ...

On April 4, 2006 Carruthers debated Rep. James A. Leach (R-Iowa), on the merits of Rep. Leach's 'Unlawful Internet Gambling Enforcement Act' (H.R. 4411). In response to Rep. Leach's rhetoric, Carruthers presented the case for the regulation of the online gambling industry in the United States^[6].

Arrest during US transit flight

On Sunday July 16, 2006 Carruthers was arrested at Dallas-Fort Worth International Airport in Texas while changing planes. He was travelling with his wife Carol (who was also arrested but subsequently released) from the BETonSPORTS Annual General Meeting in the United Kingdom to his home in Costa Rica where they have resided since 2000. July 16 is the 197th day (198th in leap years) of the year in the Gregorian Calendar, with 168 days remaining. ... 2006 (MMVI) is a common year starting on Sunday of the Gregorian calendar. ... Dallas/Fort Worth International Airport (IATA: DFW, ICAO: KDFW) is located between the cities of Dallas and Fort Worth, and is the busiest airport in Texas. ... This article does not cite its references or sources. ...

(At that meeting held on Friday July 14th he had publicly announced that the chances of the 'Unlawful Internet Gambling Enforcement Act' (H.R. 4411) being passed by the US Senate are "remote"^[7].) July 14 is the 195th day (196th in leap years) of the year in the Gregorian Calendar, with 170 days remaining. ...

As of July 21 Carruthers was still behind bars in Fort Worth, Texas awaiting a bail hearing^[8] concerning Federal charges filed in Missouri related to his company taking wagers over the telephone and Internet from US citizens. July 21 is the 202nd day (203rd in leap years) of the year in the Gregorian Calendar, with 163 days remaining. ... Flag Seal Nickname: Cowtown Location Location in the state of Texas Coordinates , Government Counties Tarrant County Denton County Mayor Michael J. Moncrief Geographical characteristics Area     City 298. ... Official language(s) None Capital Jefferson City Largest city Kansas City Largest metro area St. ...

The charges are several, including 'Mail Fraud', 'Transmission of Wagers/Wagering Information', 'Interstate Transportation of Gambling Paraphernalia', and 'Interference with Administration of Internal Revenue Laws', specifically the evasion of Federal wagering excise taxes^[9].

Coming straight after the controversial extradition of the NatWest Three, to which it has been compared because both cases involve the indictment of non-US persons for actions taken outside the United States, the Carruthers case has attracted much media attention. The NatWest Three, also known as the Enron Three, are three United Kingdom businessmen—Giles Darby, David Bermingham and Gary Mulgrew—who were extradited to the United States on July 13, 2006 on charges relating[1] to the collapse of the Enron Corporation in 2001 when they were working for...

Analysts speculate that Carruthers' detention is politically motivated^[10]:

"We will be monitoring this case closely as it is too early to say if this is part of a broader strategy on prevention of Internet gambling in the US or if it is the Department of Justice flexing their muscle and trying to influence legislation," said Greg Harris, an analyst at Cannacord Capital.

"David Carruthers is a prominent advocate of the pro-online gambling industry and the fear that this is an escalation of the anti-lobby will trouble markets," Williams de Broë analyst Nigel Parson said.

Initial Detention Hearing

At a detention hearing in Fort Worth, Texas on July 20th, David Carruthers waived his right to a bail hearing when he appeared before the Texas court. Flag Seal Nickname: Cowtown Location Location in the state of Texas Coordinates , Government Counties Tarrant County Denton County Mayor Michael J. Moncrief Geographical characteristics Area     City 298. ...

Instead, he asked to have the conditions of his release discussed in the jurisdiction of East Missouri, where the charges were filed. The magistrate agreed to the request. Official language(s) None Capital Jefferson City Largest city Kansas City Largest metro area St. ...

"We are very optimistic that the court in St. Louis can fashion some reasonable conditions for his release," said Carruthers' Texan lawyer, Tim Evans. The Gateway Arch, shown here behind the Old Courthouse, is the most recognizable part of the St. ...

"We want to have the detention hearing in the jurisdiction of East Missouri," Evans told the court.

"We order that David Carruthers be detained pending a detention hearing to be held in the prosecuting district," was Judge Charles Bleil's reply.

Outside the courtroom, Evans explained why Mr Carruthers had made the surprise move to shift the hearing to East Missouri. "Yesterday afternoon we determined it would be in our best interests to waive our right to a detention hearing here," he said. "We are very optimistic that the East Missouri court can fashion some optimistic and reasonable conditions for his release."

After his appearance in court, Mr Carruthers returned to the medium-security federal prison in Fort Worth to spend the night. He was expected to make the journey to a jail in St Louis, Missouri by prison bus on Saturday July, 22nd.^[11]

Termination as CEO

Carruthers was terminated as BETonSPORTS Chief Executive Officer on July 24, 2006, following his arrest and detention. The company cited Carruthers' inability to perform his daily business duties while jailed as the primary reason for the termination of his contract.^[12] It is widely speculated that BETonSPORTS' board made this move in order to distance itself from the scandal and from questions regarding the criminal background of company founder Gary Kaplan.^[13]

The original news item submitted to the London Stock Exchange Regulatory News Service stated that as a consequence Carruthers has also been removed as a director of BETonSPORTS Plc.^[14]

Arraignment

On Monday July 31, 2006 the defendants in the criminal case were arraigned before U.S. Magistrate Judge for the First Eastern District of Missouri, Mary Ann L. Medler. July 31 is the 212th day (213th in leap years) of the year in the Gregorian Calendar, with 153 days remaining. ... 2006 (MMVI) is a common year starting on Sunday of the Gregorian calendar. ... Arraignment is a common law term for the formal reading of a criminal complaint, in the presence of the defendant, to inform him of the charges against him. ...

Entering not guilty pleas were Neil Kaplan and Lori Kaplan Multz, brother and sister of BETonSPORTS Plc. founder Gary Kaplan, along with BETonSPORTS employee Tim Brown; owner of Mobile Promotions Inc. William Lenis; Lenis' daughter and son Monica and William Luis Lennis, and his nephew Manny Lenis, who worked for Mobile Promotions.

An attorney for one of the Florida firms indicted, DME Global Marketing & Fulfillment Inc., entered a not guilty plea, while two other companies did not enter pleas, including BETonSPORTS Plc itself.

David Carruthers was also supposed to appear in the St. Louis court, but was still in the process of being transported from Fort Worth, Texas. Flag Seal Nickname: Cowtown Location Location in the state of Texas Coordinates , Government Counties Tarrant County Denton County Mayor Michael J. Moncrief Geographical characteristics Area     City 298. ...

A not-guilty plea was entered for him, and he will remain in custody until what is expected to be $1 million (£539,000) bail bond arrangement can be finalized.^[15]

Wearing leg irons, a white T-shirt and loose beige slacks, Mr Carruthers only spoke to confirm his name, age and plea. Speaking outside the court, his lawyer, Tim Evans, said: "Right now, we want to get him out and living in clean sheets and clean clothes."^[16]

Release on Bail

David Carruthers was released on bail the morning of August 16th, 2006. His conditions of release include a $1 million (£527,000) bail bond and that he must remain under house arrest in a hotel in Clayton, Missouri, 24 hours a day (only being permitted to leave the hotel for court appearances, meetings with his attorneys or medical emergencies). He must also wear an electronic tagging device so that his movements may be constantly monitored, and it was required he get a dedicated phone line installed at the hotel.^[17] Clayton is the county seat of St. ...

During the hearing, Carruthers asked the judge only one question: "The house incarceration: Is that 24 hours a day?". Judge Medler confirmed it was. Federal officials overseeing Carruthers' bond wouldn't confirm whether he will be forced to stay in his room, or have access to the entire hotel. Carruthers' St. Louis attorney, Scott Rosenblum stated that his client is not a flight risk.

"He's looking forward to responding to these charges in court," Rosenblum said.^[18]

Other

Carruthers is a food connoisseur, lover of fine wines and an expert snooker player. A connoisseur (Fr. ... Snooker is a billiards sport that is played on a large (12 × 6) baize-covered table with pockets in each of the four corners and in the middle of each of the long side cushions. ...

References

See also

• NatWest Three
• Jay Cohen

The NatWest Three, also known as the Enron Three, are three United Kingdom businessmen—Giles Darby, David Bermingham and Gary Mulgrew—who were extradited to the United States on July 13, 2006 on charges relating[1] to the collapse of the Enron Corporation in 2001 when they were working for... Jay Cohen is a television producer, announcer and art auctioneer on luxury cruise ships. ...

External links

• BETonSPORTS Plc corporate site
• 'Free David Carruthers' site