For those of you who know of David Carruthers, you should be aware that he was the former CEO of BetOnSports plc who in 2006 was held by US authorities in Texas as he was flying from London to Costa Rica.

This was part of a clamp down by US law who were tackling major offshore organisations that had been offering illegal online gambling activities and services to players within the US.

He was therefore charged for violating US federal laws that directly related to illegal gambling in the US. The indictment of BetOnSports reported that there had been a minimum of nine violations of the law. Carruthers was put under house arrest and the bail bond was placed at $1,000,000. Carruthers actual charge was violating the US Wire Act of 1961.

Three years later in April of 2009, David Carruthers then went on to plead guilty to charges relating to racketeering. He also agreed to assist the authorities during the federal investigation of the founder of BetOnSports, Gary Kaplan.

The prosecutors recommended that the former SEO should receive a total sentence of no more than three years. This would also come with the possibility of an early release with current time served because he was living under house arrest in a hotel for three years.

Carruthers decided to withdraw his plea of guilty in September of 2009 but the former CEO then decided to agree a plea deal with US prosecutors in early 2010. He had decided to plead guilty to one count of racketeering conspiracy. This led to him being sentenced to a total of 33 months in prison.

The Scotsman became the first executive of an online gambling company to plead guilty in a racketeering case of this kind.  He was optimistic at the time that he would receive probation from the prosecuting US District Court Judge, Carol Jackson. However, Carruthers was sentenced nonetheless. He did manage to end up receiving a lighter sentence than Kaplan who received 51 months and is currently spending his time in a penitentiary in Illinois.

Carruthers did explain that he regretted the situation and was quoted in an edition of Business Week as saying, “I understand now that the business was operating outside of the United States. I realise I made the biggest mistake of my life. I am sorry for the actions of BetOnSports and the trouble it caused.”

Steven Holtshouser, the Assistant US Attorney of the Eastern District of Missouri said, “The prosecution and conviction of David Carruthers is significant to the Government’s efforts at enforcement of US laws against offshore internet and telephone sports wagering businesses, because Carruthers was both a foreign national and a top executive of BetOnSports.

“Both the conviction of, and the sentence handed down against Mr Carruthers should send a message to any foreign business conducting illegal activities in the United States, that geography does not render it untouchable, added the Assistant US Attorney.