More news about David

BetonSports’ Carruthers waives right to bail hearing

By investor.ft.com
Created: 1:00 PM ET July 21, 2006
Last Updated: 7/21/2006 1:00:25 PM
David Carruthers, chief executive of BetOnSports.com, who was arrested on conspiracy, fraud and racketeering charges, waived his right to a bail hearing when he appeared before a Texas court on Friday.

Instead, the internet gambling executive, who is expected to file a not guilty plea to the charges, 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.

After the hearing, his lawyer said he thought it was more likely he would be granted bail there.

“We want to have the detention hearing in the jurisdiction of East Missouri,” Tim Evans, his lawyer, told the court.

“We order that David Carruthers be detained pending a detention hearing to be held in the prosecuting district,” said Judge Charles Bleil.

When he appears before the East Missouri court “he is certain to enter a plea of not guilty,” a source close to Mr Carruthers said.

Mr Carruthers filed into the Fort Worth courthouse chained in a line with other prisoners wearing an orange prison jumpsuit. He was shackled at the hands and feet and tied to the prisoners in front and behind.

FBI agents arrested Mr Carruthers in Fort Worth airport last Sunday as he changed flights on his way from London to Costa Rica, where BetOnSports is based. He and 10 others are charged with running internet and phone gambling on US college and professional sports, which is illegal there.

Mr Carruthers’ detainment came after Congress passed a bill to ban internet gambling last week, but was a shock to the businessman, a prominent lobbyist for online sports betting in the US, and a regular visitor to the country.

Outside the courtroom, his lawyer 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 is expected to make the journey to a jail in St Louis, Missouri by prison bus on Saturday.

And also:

Internet Gambling Executive’s Arrest Raises Questions on US Motives

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Haynes and Boone, LLP: Internet Gambling Executive’s Arrest Raises Questions on US Motives

Last Update: 5:07 PM ET Jul 20, 2006

DALLAS, July 20, 2006 /PRNewswire via COMTEX/ — The surprise airport arrest of a prominent UK internet gambling executive this week is a counter-productive application of US law that ignores complex international trade issues, says Larry Gaydos, partner in the White Collar Defense/Antitrust Practice Group at Haynes and Boone, LLP.

“Selectively targeting foreign businessmen who are respected in their own country to sensationalize the issue is unfair to the individuals and our friends in the international community,” says Mr. Gaydos, who has extensive experience in white collar criminal defense, foreign trade, and general criminal matters. “Long-term, it may also have adverse consequences on US business. If the tables were reversed, I am sure the US would be outraged.”

Along with the recent extradition of three UK bankers to face Enron- related charges in Houston, the arrest of BetOnSports.com executive David Carruthers at Dallas-Fort Worth International Airport Sunday night has prompted many in the UK business and legal communities to cry foul. As the New York Times pointed out this week, “Now, many fear that the same controversial extradition treaty could be used to force British online gambling executives to stand trial in the United States.” Understandably, gaming stocks on the London Stock Exchange have been severely impacted.

But, Mr. Gaydos says, the two cases are actually quite different in legal foundation. The British banker extraditions involved wire fraud, but encompassed conduct that would be a crime in most countries. The supporting FBI affidavit used in the extradition proceedings properly sets out a “probable cause” case, he says.

The Carruthers arrest, however, is problematic because the activity involved — online gambling — is legal in the UK.

“The issues involved are complex international issues involving trade and broader issues about the international policing of the Internet,” Mr. Gaydos says. “The many problems associated with both these international issues require international solutions. The US attempt to do an end-run through a publicized arrest like this is legitimately perceived as arrogant and probably counter-productive to the mutual international goal of solving a growing problem.”

Mr. Gaydos is available for interviews by contacting Doug Bedell at [email protected] or calling 214-651-5815.
Haynes and Boone, LLP is an international corporate law firm with offices in Texas, Washington, D.C., Mexico City, Moscow and New York, providing a full spectrum of legal services.

SOURCE Haynes and Boone, LLP

Douglas Bedell of Haynes and Boone, LLP, +1-214-651-5815, or cell, +1-214-651-3058, or [email protected]