BetonSports CEO pleads guilty

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David Carruthers, the former director and chief executive officer of BetonSports, pleaded guilty today to a racketeering conspiracy involving illegal gambling.

Carruthers, a citizen of the United Kingdom, was hired by Gary Kaplan around June 2000, as CEO of BetonSports.com, a sportsbook organization based in Costa Rica. He pleaded guilty before Chief U.S. District Judge Carol E. Jackson, of the St. Louis-based federal court.

Carruthers agreed to cooperate with the government, and the government agreed that Carruthers’ sentence will be no more than 33 months, or nearly three years. He also agreed to pay full restitution. The government agreed to dismiss the other counts against Carruthers. The maximum penalty for racketeering conspiracy is 20 years in prison, a $250,000 fine or both.

BetonSports’ fraud affected more than 250 victims who lost between $7 million and $20 million, according to the plea agreement.

In addition to providing illegal gambling, BetonSports used customers’ money to support and expand its operations, and when it ceased operations in July 2006, the company couldn’t repay more than $16 million in customer funds it held on account.