THE DEED IS DONE - ONLINE FIRM BETONSPORTS PLEADS GUILTY TO RACKETEERING

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Have Carruthers and Kaplan been hung out to dry by BoS directors?

Mainstream media such as CNN, international wire services and major US newspapers are carrying a story from St. Louis, Missouri concerning a plea of guilty on federal racketeering charges which has been entered by the British online gambling group Betonsports.

The Antiguan licensed and British listed online gambling company admitted to a "pattern of racketeering acts," including mail and wire fraud, operating an illegal gambling business and money laundering, U.S. Attorney Catherine Hanaway said in a statement. "This plea, combined with the terms of the civil injunction should put an end to the Betonsports illegal gambling empire," Hanaway said.

Hanaway, a prominent figure in a series of federal actions that has brought Betonsports to its knees says that the plea could result in the company being required to pay $500 000 or more in fines. Federal authorities had earlier in the case filed notice that they would also seek the forfeiture of millions of dollars, although given the company's parlous financial state this is unlikely to be realised.

Part of the plea agreement will be bad news for ex-CEO David Carruthers, currently still under house arrest ten months after his original detention; BoS founder Gary Kaplan who was arrested in Dominica in March and other defendants named in the federal indictment attacking company online gambling operations - it includes a cooperation clause.

Hanaway revealed that the plea agreement entered into on Thursday includes the company supplying witnesses and evidence in the pending cases against co-defendants. Provided the company and its directors do this, no further criminal prosecution will be brought in the Eastern District of Missouri relative to the BoS participation in the Kaplan gambling enterprise between July 2004 and the present.

Describing the news as a “punch in the stomach” to Carruthers, Point-Spreads.com said:  "The current board members and management team that agreed to work with federal prosecutors were recruited to Betonsports by the former CEO."

By pleading guilty to the racketeering conspiracy charge, Betonsports admits that it conducted an enterprise through a pattern of racketeering acts, including repeated mail and wire fraud, operated an illegal gambling business, laundered money, and admitted to multiple state gambling felony charges, according to the statement from Hanaway's office.

Betonsports admitted in federal court that the gambling enterprise began as an illegal sports betting business in New York City in the early 1990s, the statement continued. After its founder's arrest on New York State gambling charges in May 1993, the founder relocated his operation to Florida, continuing to take sports wagers from bettors in New York by telephone. In 1995, the gambling operation moved to Aruba, in the West Indies and established toll-free telephone services to take sports wagers from gamblers in the U.S. and started to accept sports wagers through the Internet. In 1997, the gambling enterprise relocated to Antigua, and then to Costa Rica.

The company faces a fine of up to $500,000 or more: The maximum fine can be double the financial gain from or loss caused by the enterprise. It also faces possible forfeitures, and the company is subject to a permanent injunction that requires it to repay money received from U.S. gamblers held by the company as of June 1, 2006.

According to the plea agreement, currently the U.S. Attorney's Office doesn't plan to charge any past or present individual Betonsports plc director, other than those already charged.

Sentencing has been set for October 19 this year, but thus far no trial date has been set for Carruthers, Kaplan and other defendants.

Betonsports agreed last year that it would permanently stop accepting bets from U.S. customers as part of an earlier settlement with Hanaway's office. The decision had a devastating impact on its business, an estimated 95 percent of which came from US sports gamblers.  Arrangements to pay US players monies owed by the company are in process through the Antiguan authorities, who earlier this year appealed to processing and advertising companies holding Betonsports funds to return same so players could be paid.