BetonSports, the internet gaming company, said on Tuesday that it had terminated the contract of David Carruthers, its chief executive, “as a consequence of [his] continued detention by US authorities”.
“Clearly, while he remains in the custody of the US government he is unable to perform his duties.
Further, the company has been unable to speak directly with Mr Carruthers,” it said.
Mr Carruthers was arrested in the US on July 17 en route to Costa Rica, where BetonSports is based.
The US Department of Justice has charged BetonSports, Mr Carruthers, company founder Gary Kaplan and associates and suppliers on 22 counts of racketeering, conspiracy and fraud in a move that could cause lasting damage to the high-profile online industry.
With Mr Carruthers’ arrest, the DoJ has sent out an unambiguous message: online gambling in the US is illegal and those who flout the law will be prosecuted.
However, the arrest may have other consequences as investors fret about the risks of doing business in the US following the arrest of Mr Carruthers and the extradition of the “NatWest Three” bankers from the UK to face fraud charges related to the collapse of energy giant.In addition to the announcement of the termination of Mr Carruthers’ contract, BetonSports sought to clarify on Tuesday that no other director from the current board was named in the DoJ indictment, saying: “The board wish to make absolutely clear that none of the founders of the original business has any continuing role within the company.”