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The fallout continued Friday for executives of what was one of the biggest online gambling operations in the US just a few years ago. David Carruthers, former Chief Executive Officer of Betonsports, became the latest company member to be sentenced to jail in the US.
Carruthers helped run an online gambling operation that brought in millions of dollars thanks to US customers. Sports betting was the operation, and it was touted by the company as legal in the US.
When the federal government found out about the operation, they quickly moved to shut it down. The company, which has since been bankrupt, had several of its member arrested and charged with various crimes including racketeering.
Founder Gary Kaplan pleaded guilty to his charges back in August of last year. he received fifty-one months in prison and was ordered to forfeit $43 million of his own money to the US.
Carruthers originally pleaded guilty in April of 2009, but then revised his plea in October after he saw the agreement that Kaplan had reached with prosecutors. Carruthers’ deal calls for him to serve thirty-three months in jail.
The US has been cracking down on what they believe to be violations of the country’s online gambling policies. In the middle of 2009, PartyGaming settled their legal dispute with the US, and positioned themselves for a possible return to the US market should the laws change.
Representative Barney Frank is leading a group of lawmakers who are seeking to overturn the Unlawful Internet Gambling Enforcement Act of 2006. Even if the law is overturned, sports betting would still be illegal online in the country.