Today, former Betonsports.com CEO and Director David Carruthers pleaded guilty to federal racketeering charges. The U.S. Attorney's Office says the Betonsports organization's conspiracy included:
"Creating and disseminating advertising throughout the United States which represented that its Internet and telephone gambling operations were legal and licensed. They failed to disclose known material facts, namely that the U.S. government and most state governments viewed such operations as illegal, and that they did not have a license to operate legally anywhere in the United States."
"Representing to potential customers that money transferred by them to BetonSports on account was safe and readily available to be withdrawn at anytime. BetonSports was actually using the funds to support and expand its operations, including the purchase of Easybets. When BetonSports ceased operations in July 2006, it could not repay its customers over $16 million held on account."
Carruthers now faces up to 20 years in prison and up to $250,000 in fines. He will be sentenced on October 2nd. The man who hired Carruthers also faces charges along with four other individuals. Those charges range from RICO conspiracy to mail fraud to the interstate transportation of gambling paraphernalia. That trial is scheduled for September.