BetOnSports Shuts Down Web Site Associated Press July 19, 2006 8:06 a.m.
http://online.wsj.com/article/SB115330779761010973.html?mod=technology_main_whats_news FORT WORTH, Texas -- Offshore sports-betting operation BetOnSports shut down its Web site Tuesday night, a day after a federal judge ordered the company to stop letting Americans place wagers. BetOnSports said it was temporarily stopping all transactions while it reviewed the situation. Trading of the company's shares was suspended in London on Tuesday. They fell as much as 24% Monday following news that the company's chief executive, David Carruthers, had been arrested and closed down 17% at 122.50 pence ($2.24). On Monday, federal officials unsealed a 22-count indictment that charges 11 people and four companies with conspiracy, racketeering and wire fraud in taking sports bets from U.S. residents. Authorities said BetOnSports falsely claimed that Internet and phone wagering on sporting events was legal and licensed. Five of the 11 individuals were arrested, including Mr. Carruthers, who remained in custody in Fort Worth pending a detention hearing on Friday. Mr. Carruthers was arrested Sunday at Dallas-Fort Worth International Airport as he waited for a connecting flight to Costa Rica. The company's founder, Gary Stephen Kaplan, the biggest target in the indictment, was somewhere in Costa Rica. He had nothing to say about the case, according to a spokesman. The Justice Department is seeking the forfeiture of $4.5 billion, plus several cars, recreational vehicles and computers from the defendants. Prosecutors convinced a federal judge in St. Louis to order BetOnSports to stop accepting bets placed from within the U.S. Americans accounted for virtually all of the company's business until recently, when it began aggressively courting bettors in Asia. BetOnSports hesitated for a day before shutting down. A company spokesman, Kevin Smith, had said attorneys were deciding what to do next. ================================================= George Antunes Voice (713) 743-3923 Associate Professor Fax (713) 743-3927 Political Science Internet: antunes at uh dot edu University of Houston Houston, TX 77204-3011 Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
