Internet Betting Firm Freezes Trading After Arrest

As reported by the Guardian: "The UK internet gaming company BetonSports today suspended trading in its shares, after the arrest of its chief executive in the US.

"BetonSports also said it was making 'urgent enquiries' with the relevant US officials to clarify its position.

"Shares in the company plunged by as much as 24% yesterday, after it emerged that its chief executive, David Carruthers, was detained by US federal authorities on Sunday night, as he changed flights at Dallas en route to the company's headquarters in Costa Rica, from the UK.

"Mr Carruthers is being held in custody in Fort Worth, Texas, after a federal grand jury in the eastern district of Missouri issued a 22-count indictment against him, other individuals and four companies on charges of racketeering, conspiracy and fraud. BetonSports has been unable to contact Mr Carruthers since his arrest.

"...Besides arresting Mr Carruthers, the US department of justice has issued a temporary restraining order requiring the company to stop taking sports bets from the US, and to return money held in wagering accounts to account holders in America..."

2006-07-18