David Carruthers, the former director and CEO of online sports wagering firm BetOnSports, was sentenced to 33 months in prison on Friday, the Justice Department announced.
Carruthers, a citizen of the United Kingdom, was hired by BetOnSports founder, Gary Kaplan, in 2000 as CEO of the online wagering company, which was based in Costa Rica.
"The prosecution and conviction of Carruthers is significant to the Government's efforts at enforcement of U.S. laws against offshore Internet and telephone sports wagering businesses, because Carruthers was both a foreign national and a top executive of BetOnSports," said Assistant U.S. Attorney Steven E. Holtshouser.
"Previously, executives, owners and investors believed that they were immune from the reach of U.S. law enforcement; even their business plans were directly aimed at the U.S. market. Both the conviction of, and 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."
Carruthers was arrested in Texas in July 2006, and pleaded guilty to racketeering charges linked to BetOnSports operations in the U.S. Carruthers agreed to cooperate with U.S. authorities.
The sentencing concludes a lengthy investigation and prosecution effort by several law enforcement agencies, the Justice Department said.