Another Gaming CEO Arrested by U.S. Government
07 September 06
Sportingbet PLC, an online sportsbook, has voluntarily
suspended trading its shares on the London Stock Exchange
after one of its chairmen was detained by the United States
government yesterday.
Sportingbet chairman Peter Dicks was arrested at J.F.K airport
and is being held as a fugitive on an outstanding warrant
generated in Louisiana. According to an announcement made
at Sportingbet’s website, a hearing is due to take
place soon, but it wouldn’t release any more information.
This arrest comes two months after David Caruthers, CEO
of BetonSports, was arrested in Texas on charges of racketeering
and fraud. Caruthers remains in house arrest awaiting trail
in St. Louis.
In 1998, Jay Cohen and two other executives were indicted
by the Department of Justice for violating the Wire Act.
Cohen returned to the United States to fight the charges.
He lost and was sentenced to 18 months in prison.
At a local level, Richard Lee, the sixth-place finisher
of this year’s World Series of Poker, is being investigated
for running an online sports book out of his home in San
Antonio. That investigation is being run by the San Antonio
police department. Although Lee’s house was raided
and thousands of dollars worth of property was seized last
week, charges have yet to be filed.
Online gaming stocks fell as the news of Dicks’ arrest
spread because most customers of online poker and sportsbooks
live in the United States. PartyGaming shares fell about
10 percent to 105.75 pence, 888 holding fell about 15 percent
to 144 pence, and Empire Online lost 3.1 percent to 70 pence.
Share prices of Sportingbet only dropped 2 percent before
the company voluntarily stopped its shares from being traded.
Read more: http://www.cardplayer.com/poker_news/news_story/1347?class=PokerNews
