BetonSports, the company at the centre of a crackdown on illegal online gambling in the United States, has dispensed with its chief executive, David Carruthers, following his arrest in Dallas, Texas earlier this month.
"On July 24, the contract under which David Carruthers acted as CEO of the company was terminated," the company announced in a statement, issued yesterday.
"Clearly, while he remains in the custody of the US government he is unable to perform his duties," the statement added.
Carruthers was arrested on Sunday July 16 by the US authorities as he passed through Dallas Fort Worth airport en route from his native UK to Costa Rica, where the firm is based. A bail hearing scheduled for last Friday was postponed, and he has remained in detention since his arrest.
Last week, the US Department of Justice announced that a federal grand jury in the Eastern District of Missouri had returned a 22-count indictment charging 11 individuals, including Carruthers, and four corporations with various charges of racketeering, conspiracy and fraud as the US authorities take an increasingly hostile stance towards internet gambling.
The company's founder, Gary Kaplan, is also accused of failing to pay federal wagering excise taxes on more than $3.3 billion in wagers taken from the United States
However, a separate statement issued by BetonSports, quoted by Bloomberg News, went on to stress that the company's founders have little to do with the present running of the company.
"The board wish to make absolutely clear that none of the founders of the original business has any continuing role within the company," this statement explained.
"The original founder has a consulting agreement with the company under which his role is non-management related, which was an absolute requirement of the board for the float and thereafter," it added.
The report stated that the company is currently "evaluating" its options as it decides its next move in response to the indictments.
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