(PRESS RELEASE) – This time it's more than just a slap on the wrist. This time someone is behind bars. David Carruthers, CEO of BetonSports.com, was arrested on July 16 while changing planes in Dallas, Texas. Carruthers was on his way to Costa Rica, where the publicly traded company's operations offices are based. He is an active and vocal advocate for the legalization and regulation of online gaming, so he was a major target for US officials.
A full copy of the indictment is also available for viewing here
The charges include 22 counts of racketeering, conspiracy and fraud, and Carruthers is not alone. Officials have also charged company founder Gary Kaplan as well as associates and suppliers. Immediately after Carruthers' arrest, investors panicked and stocks on the London Stock Exchange, in the online gaming sector fell more than 1 billion dollars.
So what does this mean for the online gaming industry? Ron Mendelson, director of offshoreXplorer.com, explains, "It is more important than ever for online gaming organizations and their principals to ensure they have complete and proper offshore protection strategies in place. The Carruthers arrest is proof that the US is serious and that they will go to any lengths possible to enforce their ridiculous and draconian anti-gaming laws on the entire globe. With the main goal of seizing assets and funds of these businesses and their principals."
Complete offshore protection is crucial. The first step in offshore protection is to incorporate your business offshore. There are a number of countries in the Caribbean that are well suited to hosting an offshore venture. They have very strict privacy laws, so identities can remain hidden from the public. Part of a complete offshore setup is an offshore bank account. Especially in the online gaming industry, the offshore account is a must because of the recent US legislation. This way a company never has to do its banking through the US and their banking activity remains private from the watchful US.
Having the proper offshore structure is critical to ensuring you are protected from the strict US anti-gaming laws as well as potential law suits through which people can seize your assets if they are not protected. With an offshore presence, you will also be able to save some of your hard-earned money from the tax man.
It is extremely important to enlist the help of an offshore specialist when considering moving offshore to ensure your offshore presence gets off to a proper start and is structured properly. With all the proper precautions in place, one can rest much easier, knowing their affairs are in order and well protected.
Email this page
Print this page
Bookmark with del.icio.us
