Carruthers Ready To Use WTO Defence?

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Detained former Betonsports CEO comes out fighting

After 10 months under house arrest in St. Louis and with the US Department of Justice charges against him still untested in a court of law, David Carruthers might be expected to be growing impatient with his invidious situation.

Carruthers, then the high profile chief exec of Betonsports.com, was arrested in July last year by US authorities at Fort Worth airport in Texas whilst transiting from the UK to Costa Rica. At the time Betonsports was one of the leading public companies in the online gambling industry, a situation dramatically reversed by the subsequent enforcement activities of the US Department of Justice.

The board of Betonsports disowned Carruthers, firing him from his executive position and leaving him to face charges of racketeering and wire fraud with another nine persons associated with the company.  Carruthers raised a million dollar bail, but is still required to remain under house arrest in St. Louis and wear an electronic tag.

Fast forward to May 2007, where Judge Mary Ann Medler of the District Court in St. Louis reportedly informed Carruthers that the recent World Trade Organisation dispute findings against the discriminatory nature of United States online gambling laws may be a defence if pursued.

Carruthers has apparently taken Judge Medler's information on board and reports this week indicate that he is drawing attention to his plight as a British citizen held in a foreign  country.  Carruthers has apparently contacted unnamed individuals working for former advisers of Betonsports, asking them to lobby the UK government, the European Union and UK and European Members of Parliament on his behalf.

Those he has contacted include people at London brokers Evolution and UK auditing group Baker Tilly, requesting that they write to Charlie McCreevy, the European Commissioner for internal market services and Peter Mandelson, the UK's European Commissioner for external trade.  Members of the UK and EU Parliament are also understood to be on his contact list.

In his communication, sent earlier this month, Carruthers reportedly outlines Judge Medler's decision that allows his lawyers to seek outside opinion regarding the recent finding by the World Trade Organisation.

Carruthers accuses the US government of actions that have “destroyed businesses, free competition and lives” in his appeal for help. The letter adds that “now more than ever it is important to get heard” and that it is “critical to communicate and ensure that (the) impact and importance of this WTO decision are not lost to silence and inaction”.

The former CEO says the WTO decision has “extraordinary implications for my life” and adds that the issue “goes beyond my personal circumstances”.

“The US decision to arrest me not only shut down BetonSports, but the actions by the US government have destroyed nearly all the public online gaming companies in the UK. Based on what the WTO has now called a treaty violation, more than US$10 billion in equity of UK-listed companies were wiped away. Three UK listed gaming companies have closed completely and other UK citizens have been arrested as well, victims of a policy that the WTO has now determined as unfair and violates their treaties.”

The appeal from Carruthers follows a week in which the founder of Betonsports, arrested in March in Dominica after an extensive search by US authorities, appeared in briefly in a St. Louis Court.  Gary Stephen Kaplan (48) entered a plea of "not guilty" before Judge Medler to a series of charges laid by the Department of Justice that included racketeering

"You understand the nature of the charges? I can't read them all," Medler asked Kaplan of the 20-count indictment. "Yes," Kaplan responded.

Prosecutors claimed London-based BetonSports and Kaplan, along with former CEO David Carruthers and nine other defendants, violated U.S. laws against Internet gambling. The prosecution is demanding the company forfeit $4.5 billion.

Kaplan was remanded in custody to May 28, when a further hearing will determine whether bail can be granted.

And on May 16, Betonsports shareholders will be asked to approve that the company enter a guilty plea after what are reported to be sensitive negotiations with the US Department of Justice.  Already crippled in a business sense by an early acquiescence to a US court order to cease accepting American business, the once successful Betonsports in heading for the liquidator, according to statements by its chairman and financial director.