Subpoenas flying to get information on BetonSports founder: CEO detained

Advertising entities and others disclosed to Gambling911.com that they have been subpoenaed by the US Justice Department to appear for questioning in Missouri.

Sources close to Gambling911.com have suggested this could stem from a case involving an online pharmaceutical company and the arrest of another executive from the BetonSports.com organization two years ago.

Shares in BetonSports.com plummeted Monday morning on news that the company's CEO, David Carruthers, was detained for questioning late Sunday night while attempting to catch a connecting flight in Miami to Costa Rica.  He was arriving from the United Kingdom.  Carruthers is not a United States citizen.

Mr Carruthers and his wife were en route from the UK to the BetonSports headquarters in Costa Rica when federal authorities approached Mr Carruthers in the transit lounge of the Miami International Airport.

His wife, who was said to be shaken by the experience, was allowed to continue the flight to Costa Rica.

The board is currently seeking clarification as to the basis of the detention and it said a further announcement will be made when appropriate.

A spokeswoman for the company was unable to give further details.

'David has not had any contact with the outside world. All we know is that he was detained. Why he was detained we don't know and I would not want to speculate,' she said.

Questions asked in Missouri included: "Do you know a "G", making reference to BetonSports.com founder who has used the first names "Gary" and "Greg" while overseeing the company up until last year.

Other stalwart founders of online gambling companies now run by other individuals have been indicted over the past few months, including Jessica Davis of BetWWTS.com, which is now owned by BetCorp.  Ms. Davis left the company last month. 

Davis, though not an original founder, had served as an executive of BetWWTS.com for more than ten years.  She is believed to be caught up in a bigger investigation revolving around one Bill Scott, who started the online gambling company as a call center operation in 1992.

Principals with knowledge of BetonSports.com's founder were flown all expenses paid to Missouri, according to sources close to Gambling911.com.

Late word is that BetonSports.com CEO David Carruthers could be formerly charged Monday afternoon, however this information is yet to be confirmed.

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Christopher Costigan, www.gambling911.com

Originally published July 17, 2006 1:03 pm EDT